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Unformatted text preview: Certain Cash Contributions for Haiti Relief Can Be Deducted on Your 2009 Tax Return A new law allows you to choose to deduct certain charitable contributions of money on your 2009 tax return instead of your 2010 return. The contributions must have been made after January 11, 2010, and before March 1, 2010, for the relief of victims in areas affected by the January 12, 2010, earthquake in Haiti. Contributions of money include contributions made by cash, check, money order, credit card, charge card, debit card, or via cell phone. The new law was enacted after the 2009 forms, instructions, and publications had already been printed. When preparing your 2009 tax return, you may complete the forms as if these contributions were made on December 31, 2009, instead of in 2010. To deduct your charitable contributions, you must itemize deductions on Schedule A (Form 1040) or Schedule A (Form 1040NR). The contribution must be made to a qualified organization and meet all other requirements for charitable contribution deductions. However, if you made the contribution by phone or text message, a telephone bill showing the name of the donee organization, the date of the contribution, and the amount of the contribution will satisfy the recordkeeping requirement. Therefore, for example, if you made a $10 charitable contribution by text message that was charged to your telephone or wireless account, a bill from your telecommunications company containing this information satisfies the recordkeeping requirement. NOTE: THIS BOOKLET DOES NOT CONTAIN TAX FORMS 1040 MAKING WORK PAY CREDIT UNEMPLOYMENT COMPENSATION Cat. No. 11325E INSTRUCTIONS Including Instructions for Schedules A, B, C, D, E, F, J, L, M, and SE 2009 makes doing your taxes faster and easier. is the easy, fast, and free way to electronically file for those who qualify. Get a faster refund, reduce errors, and save paper. For more information on IRS e-file and Free File, see page 5 or click on IRS e-file at www.irs.gov. It pays to work. You may be able to take this credit if you have earned income from work. You do not have to pay tax on unemployment compensation of up to $2,400 per recipient. Amounts over $2,400 per recipient are still taxable. CREDIT FOR NONBUSINESS ENERGY PROPERTY You may be able to take this credit for certain energy-saving improvements to your main home. DEDUCTION FOR MOTOR VEHICLE TAXES You may be able to deduct state or local sales or excise taxes you paid on the purchase of a new motor vehicle after February 16, 2009. IRS Department of the Treasury Internal Revenue Service www.irs.gov For details on these and other changes, see pages 6 and 7. Page 2 of 104 of Instructions 1040 7:56 - 17-NOV-2009 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. A Message From the Commissioner Dear Taxpayer, As another tax season begins, the IRS wants to make filing and paying your taxes as quick and easy as possible. We are trying to see things from your perspective so we can improve the quality and kinds of service we provide you. We want to help you successfully navigate a highly complex tax code and pay what you owe under the law—not a penny more, or a penny less. The American people who play by the rules every day further expect the IRS to vigorously enforce the tax law. Rest assured, we are pursuing those trying to evade paying their taxes. I also want to take this opportunity to make a pitch for e-file. If you received this 1040 package in the mail, the odds are that you are not enjoying the benefits of e-file. However, filing your taxes online was never easier. E-file is fast, secure, accurate, and taxpayers electing direct deposit can get their refunds in as little as 10 days. Therefore, you might want to give e-file a second look. For lower-income taxpayers and the elderly who don’t have access to a home computer and the Internet, there are thousands of convenient volunteer sites across the nation standing ready to prepare your return for free and e-file it to the IRS. Call our toll-free number at 1-800-829-1040 to find the one nearest to you. It is also important that taxpayers receive every tax credit for which they are eligible. This could mean extra money in your pocket as the American Recovery and Reinvestment Act created a number of new credits and expanded some existing ones. For example, qualifying taxpayers who bought a home in 2009 can claim a credit of up to $8,000 on either their 2008 or 2009 return. And the American Opportunity Tax Credit provides financial assistance of up to $2,500 to help offset tuition costs and other expenses for individuals pursuing a college education. In addition, the Earned Income Tax Credit was increased for families with three or more children, while the marriage penalty was reduced. Eligibility for the Additional Child Tax Credit also increased, meaning millions more low-income earners can claim it. If you need any more information or have questions about taxes or tax credits, please visit us online at www.irs.gov, or call us toll-free at 1-800-829-1040. We are here to help you. Sincerely, Douglas H. Shulman The IRS Mission Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. -2- Table of Contents Department of the Treasury Internal Revenue Service Contents Page Contents Page IRS Customer Service Standards . . . . . . . . 4 Help With Unresolved Tax Issues (Taxpayer Advocate Service) . . . . . . . . . 4 Suggestions for Improving the IRS (Taxpayer Advocacy Panel) . . . . . . . . . . 4 IRS e-file . . . . . . . . . . . . . . . . . . . . . . . . . . 5 What’s New . . . . . . . . . . . . . . . . . . . . . . . . 6 Filing Requirements . . . . . . . . . . . . . . . . . . 7 Do You Have To File? . . . . . . . . . . . . . . 7 When and Where Should You File? . . . . 8 Where To Report Certain Items From 2009 Forms W-2, 1098, and 1099 . . . . . . . . . . . . . . . . . . . . . . . . . 10 Tax Return Page Reference . . . . . . . . . 12 Line Instructions for Form 1040 . . . . . . . . 14 Name and Address . . . . . . . . . . . . . . . . 14 Social Security Number (SSN) . . . . . . . 14 Presidential Election Campaign Fund . 14 Filing Status . . . . . . . . . . . . . . . . . . . . . 14 Exemptions . . . . . . . . . . . . . . . . . . . . . 16 Income . . . . . . . . . . . . . . . . . . . . . . . . . 21 Adjusted Gross Income . . . . . . . . . . . . 29 Tax and Credits . . . . . . . . . . . . . . . . . . 35 Other Taxes . . . . . . . . . . . . . . . . . . . . . 45 Payments . . . . . . . . . . . . . . . . . . . . . . . 46 2009 Earned Income Credit (EIC) Table . . . . . . . . . . . . . . . . . . . . . . . . 55 Refund . . . . . . . . . . . . . . . . . . . . . . . . . 72 Amount You Owe . . . . . . . . . . . . . . . . 74 Third Party Designee . . . . . . . . . . . . . . 75 Sign Your Return . . . . . . . . . . . . . . . . . 75 Assemble Your Return . . . . . . . . . . . . . 76 2009 Tax Table . . . . . . . . . . . . . . . . . . 77 2009 Tax Computation Worksheet . . . . 89 General Information . . . . . . . . . . . . . . . . . 90 Refund Information . . . . . . . . . . . . . . . 93 What Is TeleTax? . . . . . . . . . . . . . . . . . 93 Calling the IRS . . . . . . . . . . . . . . . . . . . 95 Quick and Easy Access to Tax Help and Tax Products . . . . . . . . . . . . . . . 96 Disclosure, Privacy Act, and Paperwork Reduction Act Notice . . . . . . . . . . . . . . 97 Order Form for Forms and Publications . 99 Major Categories of Federal Income and Outlays For Fiscal Year 2008 . . . 100 2009 Tax Rate Schedules . . . . . . . . . . . . 101 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 -3- IRS Customer Service Standards At the IRS, our goal is to continually improve the quality of our services. To achieve that goal, we have developed customer service standards in the following areas. ● Access to information. ● Accuracy. ● Prompt refunds. ● Canceling penalties. ● Resolving problems. ● Simpler forms. ● Easier filing and payment options. If you would like information about the IRS standards and a report of our accomplishments, see Pub. 2183. Help With Unresolved Tax Issues Taxpayer Advocate Service The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving problems with the IRS, or who believe that an IRS system or procedure is not working as it should. Here are seven things every taxpayer should know about TAS: 1. TAS is your voice at the IRS. 2. Our service is free, confidential, and tailored to meet your needs. 3. You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just is not working as it should. 4. TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. This includes businesses as well as individuals. 5. TAS employees know the IRS and how to navigate it. We will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved. 6. TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico. You can call your local advocate, whose number is in your phone book, in Publication 1546, Taxpayer Advocate Service—Your Voice at the IRS, and on our website at www.irs.gov/advocate. You can also call our toll-free line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. 7. You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www.taxtoolkit.irs.gov. Low Income Taxpayer Clinics (LITCs) The Low Income Taxpayer Clinic program serves individuals who have a problem with the IRS and whose income is below a certain level. LITCs are independent from the IRS. Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or for a small fee. If an individual’s native language is not English, some clinics can provide information in certain other languages about taxpayer rights and responsibilities. For more information, see Publication 4134, Low Income Taxpayer Clinic List. This publication is available at www.irs.gov, by calling 1-800-TAX-FORM (1-800-829-3676), or at your local IRS office. Suggestions for Improving the IRS Taxpayer Advocacy Panel The Taxpayer Advocacy Panel (TAP) is a diverse group of citizen volunteers who listen to taxpayers, identify taxpayers’ issues, and make suggestions for improving IRS service and customer satisfaction. The panel is demographically and geographically diverse, with at least one member from each state, the District of Columbia, and Puerto Rico. To learn more about the TAP, go to www.improveirs.org or call 1-888-912-1227 toll-free. -4- Three Options for e-filing your returns—quickly, safely and easily. Last year more than 92 million Americans filed their returns electronically. Why? ● Faster refunds—in as little as 10 days with Direct Deposit. ● Easier filing since there are no paper returns to mail. ● Quick notification of receipt of your return. ● Confidence since the IRS uses the most secure technology available to safeguard your personal information. ● Freedom to file now and pay later. ● Help the environment by saving paper. ● Available 24/7. In addition to the benefits above, you’ll also get greater accuracy since returns are checked for common errors—in fact, e-file averages a 1% or less error rate—far lower than the 20% associated with paper returns. e-file is available through a network of trusted providers—including popular types of off-the-shelf tax preparation software (you’ll find a listing at www.irs.gov/efile)—as well as professional tax preparers. e-filing your return can be free so be sure to shop around before choosing a preparer or tax software. Find out more at www.irs.gov. Many states also offer e-filing. Free File Fillable Forms If you’ve filed paper returns in the past without the help of a tax preparer, then Free File Fillable Forms may be for you. With Free File Fillable Forms: ● There are no income requirements so everyone is eligible, ● It is easy to use since it offers the most commonly filed IRS forms, ● It performs basic math calculations, and ● It is available only at www.irs.gov and only for a federal tax return. If your adjusted gross income was $57,000 or less in 2009, you can electronically file your taxes at no cost by using Free File. If you qualify, Free File gives you all the benefits of e-file and it’s available in English and Spanish. To use Free File, simply log on to www.irs.gov. The VITA Program offers free tax help for low to moderate income (under $49,000 in adjusted gross income) taxpayers who cannot prepare their own returns. The Tax Counseling for the Elderly (TCE) program provides free tax help to people age 60 and older. www.irs.gov is the gateway to all electronic services offered by the IRS, as well as the spot to download forms if you should choose to file a paper return. -5- Page 6 of 104 of Instructions 1040 7:56 - 17-NOV-2009 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. What’s New What’s New for 2009 Making work pay credit. If you have earned income from work, you may be able to take this credit. It is 6.2% of your earned income but cannot be more than $400 ($800 if married filing jointly). See page 47. Government retiree credit. You may be able to take this credit if you get a government pension or annuity, but it reduces any making work pay credit. See page 47. Economic recovery payment. Any economic recovery payment you received is not taxable for federal income tax purposes, but it reduces any making work pay credit or government retiree credit. See pages 29 and 47. Cash for clunkers. A $3,500 or $4,500 voucher or payment made for such a voucher under the CARS “cash for clunkers” program to buy or lease a new fuel-efficient automobile is not taxable for federal income tax purposes. Buying U.S. Series I Savings Bonds with your refund. You can now receive up to ing jointly or qualifying widow(er)). If your spouse was covered by a retirement plan, but you were not, you may be able to take an IRA deduction if your 2009 modified AGI is less than $176,000. See pages 31 and 32 for details and exceptions. Deduction for motor vehicle taxes. If you bought a new motor vehicle after February 16, 2009, you may be able to deduct any state or local sales or excise taxes on the purchase. In states without a sales tax, you may be able to deduct certain other taxes or fees instead. Take the deduction on Schedule A if you are itemizing deductions and are not electing to deduct state and local general sales taxes. If you are not itemizing deductions, these taxes increase your standard deduction and are claimed on Schedule L. See the instructions for line 40a beginning on page 35. First-time homebuyer credit. The credit increases to as much as $8,000 ($4,000 if married filing separately) for homes bought after 2008 and before May 1, 2010 (before July 1, 2010, if you entered into a written binding contract before May 1, 2010). You can choose to claim the credit on your 2009 return for a home you bought in 2010 that qualifies for the credit. See page 72. • Two children lived with you and you earned less than $40,295 ($45,295 if married filing jointly), • One child lived with you and you earned less than $35,463 ($40,463 if married filing jointly), or • A child did not live with you and you earned less than $13,440 ($18,440 if married filing jointly). The maximum AGI you can have and still get the credit also has increased. You may be able to take the credit if your AGI is less than the amount in the above list that applies to you. The maximum investment income you can have and still get the credit has increased to $3,100. See page 48. Divorced or separated parents. A noncus- todial parent claiming an exemption for a child can no longer attach certain pages from a divorce decree or separation agreement instead of Form 8332 if the decree or agreement was executed after 2008. The noncustodial parent must attach Form 8332 or a similar statement signed by the custodial parent and whose only purpose is to release a claim to exemption. See page 18. Qualifying child definition revised. The following changes to the definition of a qualifying child apply. • To be your qualifying child, a child must be younger than you unless the child is permanently and totally disabled. • A child cannot be your qualifying child if he or she files a joint return, unless the return was filed only as a claim for refund. • If the parents of a child can claim the child as a qualifying child but no parent so claims the child, no one else can claim the child as a qualifying child unless that person’s AGI is higher than the highest AGI of any parent of the child. • Your child is a qualifying child for purposes of the child tax credit only if you can and do claim an exemption for him or her. Tax on child’s investment income. The amount of taxable investment income a child can have without it being subject to tax at the parent’s rate has increased to $1,900. See Form 8615 on page 38. Elective salary deferrals. The maximum $5,000 of U.S. Series I Savings Bonds as part of your income tax refund without setting up a TreasuryDirect® account in advance. For more details, see Form 8888. Unemployment compensation. You do not have to pay tax on unemployment compensation of up to $2,400 per recipient. Amounts over $2,400 are still taxable. See page 27. COBRA subsidy. The 65% subsidy for You generally must repay any credit you claimed for 2008 if you sold your home in 2009 or the home ceased to be your main home in 2009. See the instructions for line 60 on page 46. Credit for nonbusiness energy property. payment of COBRA health care coverage continuation premiums is not taxable for federal income tax purposes. Home mortgage principal reductions. Any You may be able to take this credit for qualifying energy saving items for your home placed in service in 2009. See the instructions for line 52 on page 45. Credits increased. The following credits have increased for some people. • Additional child tax credit (line 65). See Form 8812. • Residential energy efficient property credit (line 52). See Form 5695. Standard mileage rates. The 2009 rate for Pay-for-Performance Success Payments that reduce the principal balance of your home mortgage under the Home Affordable Modification Program are not taxable. American opportunity credit. The maxi- mum Hope education credit has increased to $2,500 for most taxpayers. The increased credit is now called the American opportunity credit. Part of the credit is now refundable for most taxpayers. Claim that part on line 66. Claim any other education credits on line 49. See pages 40 and 72. Alter na t i v e m i ni m u m ta x (A M T ) exemption amount increased. The AMT business use of your vehicle is 55 cents a mile. The 2009 rate for use of your vehicle to get medical care or to move is 24 cents a mile. Personal casualty and theft loss limit. exemption amount has increased to $46,700 ($70,950 if married filing jointly or a qualifying widow(er); $35,475 if married filing separately). IRA deduction expanded. You may be able to take an IRA deduction if you were covered by a retirement plan and your 2009 modified adjusted gross income (AGI) is less than $65,000 ($109,000 if married fil- Each personal casualty or theft loss is limited to the excess of the loss over $500 for 2009. In addition, the 10% of AGI limit generally continues to apply to the net loss. Earned income credit (EIC). The EIC has increased for people with three or more children and for some married couples filing jointly. You may be able to take the EIC if: • Three or more children lived with you and you earned less than $43,279 ($48,279 if married filing jointly), amount you can defer under all plans is generally limited to $16,500 ($11,500 if you have only SIMPLE plans; $19,500 for section 403(b) plans if you qualify for the 15-year rule). The catch-up contribution limit for individuals age 50 or older at the end of the year has increased to $5,500 (except for section 401(k)(11) plans and SIMPLE plans, for which this limit remains unchanged). -6- Limit on exclusion of gain on sale of main home. In certain cases, gain from the sale of your main home is no longer excludable from income if it is allocable to periods after 2008 when neither you nor your spouse (or your former spouse) used the property as a main home. See Pub. 523. Electric vehicle credits. You may be able • A child did not live with you and you earned less than $13,460 ($18,470 if married filing jointly). The maximum AGI you can have and still get the credit also has increased. You may be able to take the credit if your AGI is less than the amount in the above list that applies to you. The maximum investment income you can have and still get the credit is still $3,100. IRA deduction expanded. You may be able to take an IRA deduction if you were covered by a retirement plan and your 2010 modified AGI is less than $66,000 ($109,000 if married filing jointly or qualifying widow(er)). If your spouse was covered by a retirement plan, but you were not, you may be able to take an IRA deduction if your 2010 modified AGI is less than $177,000. Recapture of first-time homebuyer credit. Expiring tax benefits. The following bene- to take a credit for: • A plug-in electric drive motor vehicle placed in service in 2009 (see Form 8936), • A plug-in electric vehicle bought after February 17, 2009 (see Form 8834), or • Conversion of a vehicle to a plug-in electric drive motor vehicle placed in service after February 17, 2009 (see Form 8910). Certain tax benefits for Mi d western disaster areas expired. Certain tax benefits for Midwestern disaster areas have expired, including special charitable contribution rules and the election to use your 2007 earned income to figure your 2008 EIC and additional child tax credit. See Pub. 4492-B. Recovery rebate cre d it expire d . This If you claimed the first-time homebuyer credit for a home you bought in 2008, you generally must begin repaying it in 2010. See Form 5405 for details. Roth IRAs. Half of any income that results credit has expired and does not apply for 2009. Mailing your return. You may be mailing your return to a different address this year because the IRS has changed the filing location for several areas. If you received an envelope with your tax package, please use it. Otherwise, see Where Do You File? on the back cover. from a rollover or conversion to a Roth IRA from another retirement plan in 2010 is included in income in 2011, and the other half in 2012, unless you elect to include all of it in 2010. In addition, for any tax year beginning after 2009, you can make a qualified rollover contribution to a Roth IRA regardless of the amount of your modified AGI. A lter n ative minimum tax (A M T ) exemption amount. The AMT exemption fits are scheduled to expire and will not be available for 2010. • Deduction for educator expenses in figuring AGI. • Tuition and fees deduction in figuring AGI. • Increased standard deduction for real estate taxes or net disaster loss. • Itemized deduction or increased standard deduction for state or local sales or excise taxes on the purchase of a new motor vehicle. • Deduction for state and local sales taxes. • The exclusion from income of up to $2,400 in unemployment compensation. • The exclusion from income of qualified charitable distributions. • Government retiree credit. • District of Columbia first-time homebuyer credit (for homes purchased after 2009). • Extra $3,000 IRA deduction for employees of bankrupt companies. • Certain tax benefits for Midwestern disaster areas, including the additional exemption amount if you provided housing for a person displaced by the Midwestern storms, tornadoes, or flooding. Personal exemption an d i temize d deduction phaseouts ended. For 2010, tax- payers with AGI above a certain amount will no longer lose part of their deduction for personal exemptions and itemized deductions. Allowance of certain personal cre d its against the AMT. The allowance of the What’s New for 2010 Earned income credit (EIC). You may be able to take the EIC if: • Three or more children lived with you and you earned less than $43,352 ($48,362 if married filing jointly), • Two children lived with you and you earned less than $40,363 ($45,373 if married filing jointly), • One child lived with you and you earned less than $35,535 ($40,545 if married filing jointly), or amount is scheduled to decrease to $33,750 ($45,000 if married filing jointly or a qualifying widow(er); $22,500 if married filing separately). Domestic production activities income. The percentage rate for 2010 increases to 9%. However, the deduction is reduced if you have oil-related qualified production activities income. Personal casualty and theft loss limit reduced. Each personal casualty or theft loss is limited to the excess of the loss over $100 (instead of $500). following personal credits against the AMT has expired. • Credit for child and dependent care expenses. • Credit for the elderly or the disabled. • Lifetime learning credit. • Mortgage interest credit. • Credit for nonbusiness energy property. • District of Columbia first-time homebuyer credit. Filing Requirements Do You Have To File? Use Chart A, B, or C to see if you must file a return. U.S. citizens who lived in or had income from a U.S. possession should see Pub. 570. Residents of Puerto Rico can use TeleTax topic 901 (see page 94) to see if they must file. These rules apply to all U.S. citizens, regardless of where they live, and resident aliens. Have you tried IRS e-file? It’s the fastest way to get your refund and it’s free if you are eligible. Visit www.irs.gov for details. Even if you do not otherwise have to file a return, you should file one to get a refund of any federal income tax withheld. You should also file if you are eligible for any of the following credits. • Making work pay credit. • Government retiree credit. • Earned income credit. • Additional child tax credit. TIP • Refundable American opportunity • First-time homebuyer credit. • Refundable credit for prior year • Health coverage tax credit. Exception for certain children under age 19 or full-time students. If certain condi- credit. minimum tax. tions apply, you can elect to include on your return the income of a child who was -7- under age 19 at the end of 2009 or was a full-time student under age 24 at the end of 2009. To do so, use Form 8814. If you make this election, your child does not have to file a return. For details, use TeleTax topic 553 (see page 94) or see Form 8814. A child born on January 1, 1986, is considered to be age 24 at the end of 2009. Do not use Form 8814 for such a child. Resident aliens. These rules also apply if When and Where Should You File? File Form 1040 by April 15, 2010. If you file after this date, you may have to pay interest and penalties. See page 92. If you were serving in, or in support of, the U.S. Armed Forces in a designated combat zone or contingency operation, you can file later. See Pub. 3 for details. See the back cover for filing instructions and addresses. will be charged from the original due date of the return on any unpaid tax. You must attach a statement to your return showing that you meet the requirements. If you are still unable to file your return by the end of the 2-month period, you can get an additional 4 months if, no later than June 15, 2010, you file Form 4868. This 4-month extension of time to file does not extend the time to pay your tax. See Form 4868. Private Delivery Services You can use certain private delivery services designated by the IRS to meet the ‘‘timely mailing as timely filing/paying’’ rule for tax returns and payments. These private delivery services include only the following. • DHL Express (DHL): DHL Same Day Service. Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. • United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express. The private delivery service can tell you how to get written proof of the mailing date. you were a resident alien. Also, you may qualify for certain tax treaty benefits. See Pub. 519 for details. Nonresident aliens and dual-status aliens. What if You Cannot File on Time? You can get an automatic 6-month extension if, no later than the date your return is due, you file Form 4868. For details, see Form 4868. These rules also apply if you were a nonresident alien or a dual-status alien and both of the following apply. resident alien at the end of 2009. • You elected to be taxed as a resident alien. See Pub. 519 for details. • You were married to a U.S. citizen or Specific rules apply to determine if you are a resident alien, nonresident alien, or dual-status CAUTION alien. Most nonresident aliens and dual-status aliens have different filing requirements and may have to file Form 1040NR or Form 1040NR-EZ. Pub. 519 discusses these requirements and other information to help aliens comply with U.S. tax law, including tax treaty benefits and special rules for students and scholars. ! An automatic 6-month extension to file does not extend the time to pay your tax. See Form CAUTION 4868. If you are a U.S. citizen or resident alien, you may qualify for an automatic extension of time to file without filing Form 4868. You qualify if, on the due date of your return, you meet one of the following conditions. • You live outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. • You are in military or naval service on duty outside the United States and Puerto Rico. This extension gives you an extra 2 months to file and pay the tax, but interest ! Private delivery services cannot deliver items to P.O. boxes. You must use the U.S. Postal CAUTION Service to mail any item to an IRS P.O. box address. ! Chart A—For Most People IF your filing status is . . . AND at the end of 2009 you were* . . . THEN file a return if your gross income** was at least . . . Single Married filing jointly*** Married filing separately (see page 15) Head of household (see page 15) Qualifying widow(er) with dependent child (see page 16) under 65 65 or older under 65 (both spouses) 65 or older (one spouse) 65 or older (both spouses) any age under 65 65 or older under 65 65 or older $9,350 10,750 $18,700 19,800 20,900 $3,650 $12,000 13,400 $15,050 16,150 *If you were born on January 1, 1945, you are considered to be age 65 at the end of 2009. **Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time in 2009 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the instructions for lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. ***If you did not live with your spouse at the end of 2009 (or on the date your spouse died) and your gross income was at least $3,650, you must file a return regardless of your age. -8- Chart B—For Children and Other Dependents (See the instructions for line 6c that begin on page 17 to find out if someone can claim you as a dependent.) If your parent (or someone else) can claim you as a dependent, use this chart to see if you must file a return. In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Gross income is the total of your unearned and earned income. Single dependents. Were you either age 65 or older or blind? No. You must file a return if any of the following apply. • Your unearned income was over $950. • Your earned income was over $5,700. • Your gross income was more than the larger of — • $950, or • Your earned income (up to $5,400) plus $300. Yes. You must file a return if any of the following apply. • Your unearned income was over $2,350 ($3,750 if 65 or older and blind). • Your earned income was over $7,100 ($8,500 if 65 or older and blind). • Your gross income was more than the larger of — • $2,350 ($3,750 if 65 or older and blind), or • Your earned income (up to $5,400) plus $1,700 ($3,100 if 65 or older and blind). Married dependents. Were you either age 65 or older or blind? No. You must file a return if any of the following apply. • Your unearned income was over $950. • Your earned income was over $5,700. • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. • Your gross income was more than the larger of — • $950, or • Your earned income (up to $5,400) plus $300. Yes. You must file a return if any of the following apply. • Your unearned income was over $2,050 ($3,150 if 65 or older and blind). • Your earned income was over $6,800 ($7,900 if 65 or older and blind). • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. • Your gross income was more than the larger of — • $2,050 ($3,150 if 65 or older and blind), or • Your earned income (up to $5,400) plus $1,400 ($2,500 if 65 or older and blind). Chart C—Other Situations When You Must File You must file a return if any of the four conditions below apply for 2009. 1. You owe any special taxes, including any of the following. a. Alternative minimum tax. b. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. c. Household employment taxes. But if you are filing a return only because you owe this tax, you can file Schedule H by itself. d. Social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes. e. Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts. See the instructions for line 60 on page 46. f. Recapture taxes. See the instructions for line 44, that begin on page 37, and line 60, on page 46. 2. 3. 4. You received any advance earned income credit (EIC) payments from your employer. These payments are shown in Form W-2, box 9. You had net earnings from self-employment of at least $400. You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. -9- Where To Report Certain Items From 2009 Forms W-2, 1098, and 1099 IRS e-file takes the guesswork out of preparing your return. You may also be eligible to use Free File to file your federal income tax return. Visit www.irs.gov/efile for details. If any federal income tax withheld is shown on these forms, include the tax withheld on Form 1040, line 61. If you itemize your deductions and any state or local income tax withheld is shown on these forms, include the tax withheld on Schedule A, line 5, unless you elect to deduct state and local general sales taxes. Form Item and Box in Which It Should Appear Where To Report if Filing Form 1040 W-2 Wages, tips, other compensation (box 1) Allocated tips (box 8) Advance EIC payment (box 9) Dependent care benefits (box 10) Adoption benefits (box 12, code T) Employer contributions to an Archer MSA (box 12, code R) Employer contributions to a health savings account (box 12, code W) Gambling winnings (box 1) Mortgage interest (box 1) Points (box 2) Refund of overpaid interest (box 3) Mortgage insurance premiums (box 4) Form 1040, See Wages, Form 1040, Form 2441, Form 8839, Form 8853, line 7 Salaries, Tips, etc. on page 21 line 59 Part III line 22 line 1 Form 8889, line 9 Form 1040, line 21 (Schedule C or C-EZ for professional gamblers) W-2G 1098 } Schedule A, line 10* Form 1040, line 21, but first see the instructions on Form 1098* See the instructions for Schedule A, line 13* Schedule A, line 17 See the instructions for Form 1040, line 33, on page 34* See the instructions for Form 1040, line 34, on page 35, or Form 1040, line 49, on page 40, but first see the instructions on Form 1098-T* See Pub. 4681 See the instructions on Form 1099-B See Pub. 525 Form 6781, line 1 See Pub. 4681 Form 1040, line 9a See the instructions for Form 1040, line 9b, on page 22 Form 1040, line 13, or, if required, Schedule D, line 13 See the instructions for Schedule D, line 19, that begin on page D-8 See Exclusion of Gain on Qualified Small Business (QSB) Stock in the instructions for Schedule D on page D-4 See the instructions for Schedule D, line 18, on page D-8 See the instructions for Form 1040, line 9a, on page 22 Schedule A, line 23 Form 1040, line 47, or Schedule A, line 8. But first see the instructions for line 47 on page 40. See the instructions for Form 1040, line 19, on page 27. See the instructions for Form 1040, line 10, that begin on page 23. If box 8 on Form 1099-G is checked, see the box 8 instructions. Form 1040, line 21 Form 1040, line 21* See the Instructions for Schedule F or Pub. 225* See the Instructions for Schedule F 1098-C 1098-E 1098-T 1099-A 1099-B Contributions of motor vehicles, boats, and airplanes Student loan interest (box 1) Qualified tuition and related expenses (box 1) Acquisition or abandonment of secured property Stocks, bonds, etc. (box 2) Bartering (box 3) Aggregate profit or (loss) (box 11) Canceled debt (box 2) Total ordinary dividends (box 1a) Qualified dividends (box 1b) Total capital gain distributions (box 2a) Unrecaptured section 1250 gain (box 2b) Section 1202 gain (box 2c) Collectibles (28%) gain (box 2d) Nondividend distributions (box 3) Investment expenses (box 5) Foreign tax paid (box 6) 1099-C 1099-DIV 1099-G Unemployment compensation (box 1) State or local income tax refunds, credits, or offsets (box 2) ATAA payments (box 5) Taxable grants (box 6) Agriculture payments (box 7) Market gain (box 9) * If the item relates to an activity for which you are required to file Schedule C, C-EZ, E, or F or Form 4835, report the taxable or deductible amount allocable to the activity on that schedule or form instead. - 10 - Form Item and Box in Which It Should Appear Where To Report if Filing Form 1040 1099-INT Interest income (box 1) Early withdrawal penalty (box 2) Interest on U.S. savings bonds and Treasury obligations (box 3) Investment expenses (box 5) Foreign tax paid (box 6) Tax-exempt interest (box 8) Specified private activity bond interest (box 9) See the instructions for Form 1040, line 8a, on page 22 Form 1040, line 30 See the instructions for Form 1040, line 8a, on page 22 Schedule A, line 23 Form 1040, line 47, or Schedule A, line 8. But first see the instructions for line 47 on page 40. Form 1040, line 8b Form 6251, line 13 See Pub. 525 and the Instructions for Form 8853 See the Instructions for Schedule E* Schedule E, line 4 (for timber, coal, and iron ore royalties, see Pub. 544)* Form 1040, line 21* Schedule C, C-EZ, or F. But if you were not self-employed, see the instructions on Form 1099-MISC. See the instructions for Form 1040, line 60, on page 46 See the instructions on Form 1099-MISC See the instructions on Form 1099-OID Form 1040, line 30 See the instructions on Form 1099-OID Schedule A, line 23 Schedule C, C-EZ, or F or Form 4835, but first see the instructions on Form 1099-PATR Form 8903, line 21 See the instructions on Form 1099-PATR Form 6251, line 28 Schedule C, C-EZ, or F See the instructions for Form 1040, line 21, on page 29 See the instructions for Form 1040, lines 15a and 15b, that begin on page 24 See the instructions for Form 1040, lines 16a and 16b, that begin on page 25 See the instructions on Form 1099-R Form 4797, Form 6252, or Schedule D. But if the property was your home, see the Instructions for Schedule D to find out if you must report the sale or exchange. Report an exchange of like-kind property on Form 8824 even if no gross proceeds are reported on Form 1099-S. See the instructions for Schedule A, line 6, on page A-5* Form 8889, line 14a Form 8853 1099-LTC 1099-MISC Long-term care and accelerated death benefits Rents (box 1) Royalties (box 2) Other income (box 3) Nonemployee compensation (box 7) Excess golden parachute payments (box 13) Other (boxes 5, 6, 8, 9, 10, and 15b) 1099-OID Original issue discount (box 1) Other periodic interest (box 2) Early withdrawal penalty (box 3) Original issue discount on U.S. Treasury obligations (box 6) Investment expenses (box 7) Patronage dividends and other distributions from a cooperative (boxes 1, 2, 3, and 5) Domestic production activities deduction (box 6) Credits (boxes 7, 8, and 10) Patron’s AMT adjustment (box 9) Deduction for small refiner capital costs or qualified refinery property (box 10) Qualified education program payments Distributions from IRAs** Distributions from pensions, annuities, etc. Capital gain (box 3) } 1099-PATR 1099-Q 1099-R 1099-S Gross proceeds from real estate transactions (box 2) Buyer’s part of real estate tax (box 5) 1099-SA Distributions from health savings accounts (HSAs) Distributions from MSAs*** * If the item relates to an activity for which you are required to file Schedule C, C-EZ, E, or F or Form 4835, report the taxable or deductible amount allocable to the activity on that schedule or form instead. ** This includes distributions from Roth, SEP, and SIMPLE IRAs. *** This includes distributions from Archer and Medicare Advantage MSAs. - 11 - Tax Return Page Reference 1040 14 L A B E L H E R E Questions about what to put on a line? Help is on the page number in the circle. Department of the Treasury—Internal Revenue Service Form U.S. Individual Income Tax Return 2009 (99) IRS Use Only—Do not write or staple in this space. Label (See instructions on page 14.) For the year Jan. 1–Dec. 31, 2009, or other tax year beginning Your first name and initial Last name , 2009, ending , 20 OMB No. 1545-0074 Your social security number 14 If a joint return, spouse’s first name and initial Last name Spouse’s social security number Use the IRS label. Otherwise, please print or type. FOR REFERENCE ONLY—DO NOT FILE Home address (number and street). If you have a P.O. box, see page 14. City, town or post office, state, and ZIP code. If you have a foreign address, see page 14. Apt. no. 14 You must enter your SSN(s) above. Checking a box below will not change your tax or refund. You Spouse Presidential 14 Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund (see page 14) 1 2 3 6a b c Single 14 Married filing jointly (even if only one had income) 4 Filing Status Check only one box. Head of household (with qualifying person). (See page 15.) If the 15 5 . . 16 qualifying person is a child but not your dependent, enter this child’s name here. Married filing separately. Enter spouse’s SSN above and full name here. Spouse . Dependents: (1) First name Qualifying widow(er) with dependent child (see page 16) Exemptions 16 Yourself. If someone can claim you as a dependent, do not check box 6a . . . . . . . . . . . . . . . . . . (2) Dependent’s social security number . . . . . . . Last name (3) Dependent’s (4) if qualifying relationship to you child for child tax credit (see page 17) ✓ . Boxes checked on 6a and 6b No. of children on 6c who: ● lived with you If more than four dependents, see page 17 and 17 check here d Total number of exemptions claimed . . . . . . . . ● did not live with you due to divorce or separation (see page 18) Dependents on 6c not entered above 19 . . . . . . . . . . 8b . . . . . . . . . . . . . . . . . . . . . . . . . 17 . 7 8a 9a 10 11 12 13 14 15b 16b 17 18 19 20b 21 22 18 Add numbers on lines above Income Attach Form(s) W-2 here. Also 76 b attach Forms W-2G and 10 1099-R if tax 11 was withheld. 12 7 8a b 9a Wages, salaries, tips, etc. Attach Form(s) W-2 . Taxable interest. Attach Schedule B if required . Tax-exempt interest. Do not include on line 8a . Ordinary dividends. Attach Schedule B if required 21 22 22 23 24 24 24 24 24 25 22 .......... 9b Qualified dividends (see page 22) . . . . . . . 22 Taxable refunds, credits, or offsets of state and local income taxes (see page 23) . Alimony received . . . . . . . . . . . . . . . . . . . . If you did not 22 get a W-2, see page 22. 13 14 15a 16a 17 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . Capital gain or (loss). Attach Schedule D if required. If not required, check here Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . 15a b Taxable amount (see page 24) IRA distributions . 24 25 b Taxable amount (see page 25) Pensions and annuities 16a Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . Unemployment compensation in excess of $2,400 per recipient (see page 27) . . . b Taxable amount (see page 27) Social security benefits 20a 27 Enclose, but do 18 not attach, any 19 payment. Also, 20a please use 74 Form 1040-V. 21 22 27 27 29 Other income. List type and amount (see page 29) Add the amounts in the far right column for lines 7 through 21. This is your total income Educator expenses (see page 29) . . . . . . . 23 24 25 26 27 28 29 30 31a 32 33 34 Adjusted Gross Income 23 24 25 26 27 28 29 30 31a 32 33 34 35 36 37 29 30 30 30 30 30 30 31 31 31 34 35 35 . . . . . . . . . . . 36 37 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ Health savings account deduction. Attach Form 8889 . Moving expenses. Attach Form 3903 . . . . . One-half of self-employment tax. Attach Schedule SE Self-employed SEP, SIMPLE, and qualified plans . . . . Self-employed health insurance deduction (see page 30) Penalty on early withdrawal of savings . . . . . . Alimony paid b Recipient’s SSN IRA deduction (see page 31) ..... Student loan interest deduction (see page 34) Tuition and fees deduction. Attach Form 8917 . . . . . . . . . 35 Domestic production activities deduction. Attach Form 8903 Add lines 23 through 31a and 32 through 35 . . . . . . . Subtract line 36 from line 22. This is your adjusted gross income 35 35 Form For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 97. Cat. No. 11320B 1040 (2009) - 12 - Tax Return Page Reference Questions about what to put on a line? Help is on the page number in the circle. Form 1040 (2009) Page 2 Tax and Credits Standard Deduction for— ● People who check any box on line 39a, 39b, or 40b or who can be claimed as a dependent, see page 35. ● All others: Single or Married filing separately, $5,700 Married filing jointly or Qualifying widow(er), $11,400 Head of household, $8,350 38 39a b 40a b 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64a b 65 66 67 68 69 70 71 Amount from line 37 (adjusted gross income) . . . . You were born before January 2, 1945, Check Spouse was born before January 2, 1945, if: . . . . . . . . . . . 38 Blind. Total boxes 39a Blind. checked If your spouse itemizes on a separate return or you were a dual-status alien, see page 35 and check here 39b Itemized deductions (from Schedule A) or your standard deduction (see left margin) . . . { } 35 40a If you are increasing your standard deduction by certain real estate taxes, new motor 40b vehicle taxes, or a net disaster loss, attach Schedule L and check here (see page 35) Subtract line 40a from line 38 . . . . . . . . . . . . . . . . . . . . Exemptions. If line 38 is $125,100 or less and you did not provide housing to a Midwestern displaced individual, multiply $3,650 by the number on line 6d. Otherwise, see page 37 . . . Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0Tax (see page 37). Check if any tax is from: a Form(s) 8814 Alternative minimum tax (see page 40). Attach Form 6251 .. Add lines 44 and 45 . . . . . . . . . . . . . . . . . Foreign tax credit. Attach Form 1116 if required b . . . . . . Form 4972 .... . . . . FOR REFERENCE ONLY—DO NOT FILE New 41 42 43 44 45 46 37 37 40 Credit for child and dependent care expenses. Attach Form 2441 .... 40 47 48 40 40 45 . . . . . . . . . . . 35 40 49 Education credits from Form 8863, line 29 . . . . . . 50 Retirement savings contributions credit. Attach Form 8880 42 51 Child tax credit (see page 42) . . . . . . . . . 52 Credits from Form: a 8396 b 8839 c 5695 3800 b 8801 c 53 Other credits from Form: a 45 Add lines 47 through 53. These are your total credits ....... Subtract line 54 from line 46. If line 54 is more than line 46, enter -0- . . . Self-employment tax. Attach Schedule SE . . . . . . Unreported social security and Medicare tax from Form: a . .. 4137 . b . . . . 54 55 56 57 58 59 60 Other Taxes ... 8919 . 45 45 46 46 Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required . Additional taxes: a AEIC payments b Household employment taxes. Attach Schedule H Add lines 55 through 59. This is your total tax . . . . . . . . . . . . . Federal income tax withheld from Forms W-2 and 1099 . . 2009 estimated tax payments and amount applied from 2008 return Making work pay and government retiree credits. Attach Schedule M Earned income credit (EIC) . . . . . . . . . . 64b Nontaxable combat pay election 50 Additional child tax credit. Attach Form 8812 . . . . . . Refundable education credit from Form 8863, line 16 . . . First-time homebuyer credit. Attach Form 5405 . . . . Amount paid with request for extension to file (see page 72) . Excess social security and tier 1 RRTA tax withheld (see page 72) Payments If you have a qualifying child, attach Schedule EIC. 61 62 63 64a 65 66 67 68 69 46 47 47 New 48 72 New 72 72 72 72 . . . 71 72 73a 72 Credits from Form: a 2439 b 4136 c 8801 d 8885 70 Add lines 61, 62, 63, 64a, and 65 through 70. These are your total payments Refund Direct deposit? See page 73 and fill in 73b, 73c, and 73d, or Form 8888. 72 73a b d 74 75 76 If line 71 is more than line 60, subtract line 60 from line 71. This is the amount you overpaid Amount of line 72 you want refunded to you. If Form 8888 is attached, check here . . c Type: Checking Savings Routing number Account number Amount of line 72 you want applied to your 2010 estimated tax 74 74 Amount you owe. Subtract line 71 from line 60. For details on how to pay, see page 74 72 73 Amount You Owe 75 74 Third Party Designee 76 Estimated tax penalty (see page 74) . . . . . . . . 74 Do you want to allow another person to discuss this return with the IRS (see page 75)? Designee’s name Yes. Complete the following. Personal identification number (PIN) No 75 Phone no. Sign Here Joint return? See page 15. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Daytime phone number 75 Spouse’s signature. If a joint return, both must sign. Date Spouse’s occupation Date 75 Paid Preparer’s Use Only Preparer’s signature Preparer’s SSN or PTIN Check if self-employed EIN Phone no. Form 1040 (2009) 75 Firm’s name (or yours if self-employed), address, and ZIP code - 13 - Form 1040 — Line 1 Line Instructions for Form 1040 Name and Address Use the Peel-Off Label Using your peel-off name and address label on the back of this booklet will speed the processing of your return. It also prevents common errors that can delay refunds or result in unnecessary notices. Put the label on your return after you have finished it. Cross out any incorrect information and print the correct information. Add any missing items, such as your apartment number. IRS e-file takes the guesswork out of preparing your return. You may also be eligible to use Free File to file your federal income tax return. Visit www.irs.gov/efile for details. Section references are to the Internal Revenue Code. Foreign Address Enter the information in the following order: City, province or state, and country. Follow the country’s practice for entering the postal code. Do not abbreviate the country name. • Your spouse is filing a separate return. Presidential Election Campaign Fund This fund helps pay for Presidential election campaigns. The fund reduces candidates’ dependence on large contributions from individuals and groups and places candidates on an equal financial footing in the general election. If you want $3 to go to this fund, check the box. If you are filing a joint return, your spouse can also have $3 go to the fund. If you check a box, your tax or refund will not change. Death of a Taxpayer See page 91. Address Change If the address on your peel-off label is not your current address, cross out your old address and print your new address. If you plan to move after filing your return, use Form 8822 to notify the IRS of your new address. Social Security Number (SSN) An incorrect or missing SSN can increase your tax or reduce your refund. To apply for an SSN, fill in Form SS-5 and return it, along with the appropriate evidence documents, to the Social Security Administration (SSA). You can get Form SS-5 online at www.socialsecurity.gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. It usually takes about 2 weeks to get an SSN once the SSA has all the evidence and information it needs. Check that your SSN on your Forms W-2 and 1099 agrees with your social security card. If not, see page 90 for more details. Filing Status Check only the filing status that applies to you. The ones that will usually give you the lowest tax are listed last. Married filing separately. Single. Head of household. Married filing jointly or qualifying widow(er) with dependent child. Name Change If you changed your name because of marriage, divorce, etc., be sure to report the change to your local Social Security Administration office before filing your return. This prevents delays in processing your return and issuing refunds. It also safeguards your future social security benefits. See page 90 for more details. If you received a peel-off label, cross out your former name and print your new name. • • • • IRS Individual Taxpayer Identification Numbers (ITINs) for Aliens If you are a nonresident or resident alien and you do not have and are not eligible to get an SSN, you must apply for an ITIN. For details on how to do so, see Form W-7 and its instructions. It takes 6 to 10 weeks to get an ITIN. If you already have an ITIN, enter it wherever your SSN is requested on your tax return. Note. An ITIN is for tax use only. It does TIP More than one filing status can apply to you. Choose the one that will give you the lowest tax. What if You Do Not Have a Label? Print or type the information in the spaces provided. If you are married filing a separate return, enter your spouse’s name on line 3 instead of below your name. Line 1 Single You can check the box on line 1 if any of the following was true on December 31, 2009. If you filed a joint return for 2008 and you are filing a joint return for 2009 with the same spouse, be sure to enter your names and SSNs in the same order as on your 2008 return. TIP not entitle you to social security benefits or change your employment or immigration status under U.S. law. Nonresident Alien Spouse If your spouse is a nonresident alien, he or she must have either an SSN or an ITIN if: • You file a joint return, • You file a separate return and claim an exemption for your spouse, or P.O. Box Enter your box number only if your post office does not deliver mail to your home. to your state law, under a decree of divorce or separate maintenance. • You were widowed before January 1, 2009, and did not remarry before the end of 2009. But if you have a dependent child, you may be able to use the qualifying widow(er) filing status. See the instructions for line 5 on page 16. • You were never married. • You were legally separated, according Need more information or forms? See page 96. - 14 - Form 1040 — Lines 2 Through 4 Line 2 Married Filing Jointly You can check the box on line 2 if any of the following apply. • You were married at the end of 2009, even if you did not live with your spouse at the end of 2009. • Your spouse died in 2009 and you did not remarry in 2009. • You were married at the end of 2009, and your spouse died in 2010 before filing a 2009 return. For federal tax purposes, a marriage means only a legal union between a man and a woman as husband and wife. A husband and wife filing jointly report their combined income and deduct their combined allowable expenses on one return. They can file a joint return even if only one had income or if they did not live together all year. However, both persons must sign the return. Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. Joint and several tax liability. If you file a You may be able to file as head of household if you had a child living with you and you lived apart from your spouse during the last 6 months of 2009. See Married persons who live apart on this page. TIP If the child is not your dependent, enter the child’s name on line 4. If you do not enter the name, it will take us longer to process your return. Dependent. To find out if someone is your dependent, see the instructions for line 6c that begin on page 17. Line 4 Head of Household Special rules may apply for people who had to relocate because of the Midwestern storms, tornadoes, or flooding. For details, see Pub. 4492-B. TIP Exception to time lived with you. Temporary absences by you or the other person for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time lived in the home. Also see Kidnapped child on page 19, if applicable. joint return, both you and your spouse are generally responsible for the tax and any interest or penalties due on the return. This means that if one spouse does not pay the tax due, the other may have to. However, see Innocent Spouse Relief on page 90. Nonresident aliens and dual-status aliens. This filing status is for unmarried individuals who provide a home for certain other persons. (Some married persons who live apart are considered unmarried. See Married persons who live apart on this page. If you are married to a nonresident alien, you may also be considered unmarried. See Nonresident alien spouse on page 16.) You can check the box on line 4 only if you were unmarried or legally separated (according to your state law) under a decree of divorce or separate maintenance at the end of 2009 and either Test 1 or Test 2 below applies. Test 1. You paid over half the cost of keep- If the person for whom you kept up a home was born or died in 2009, you can still file as head of household as long as the home was that person’s main home for the part of the year he or she was alive. Keeping up a home. To find out what is included in the cost of keeping up a home, see Pub. 501. If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. Married persons who live apart. Even if Generally, a husband and wife cannot file a joint return if either spouse is a nonresident alien at any time during the year. However, if you were a nonresident alien or a dual-status alien and were married to a U.S. citizen or resident alien at the end of 2009, you may elect to be treated as a resident alien and file a joint return. See Pub. 519 for details. ing up a home that was the main home for all of 2009 of your parent whom you can claim as a dependent, except under a multiple support agreement (see page 19). Your parent did not have to live with you. Test 2. You paid over half the cost of keeping up a home in which you lived and in which one of the following also lived for more than half of the year (if half or less, see Exception to time lived with you on this page). 1. Any person whom you can claim as a dependent. But do not include: Line 3 Married Filing Separately If you are married and file a separate return, you will usually pay more tax than if you use another filing status for which you qualify. Also, if you file a separate return, you cannot take the student loan interest deduction, the tuition and fees deduction, the education credits, or the earned income credit. You also cannot take the standard deduction if your spouse itemizes deductions. Generally, you report only your own income, exemptions, deductions, and credits. Different rules apply to people in community property states. See page 21. Be sure to enter your spouse’s SSN or ITIN on Form 1040 unless your spouse does not have and is not required to have an SSN or ITIN. a. Your qualifying child (as defined in Step 1 on page 17) whom you claim as your dependent based on the rule for Children of divorced or separated parents that begins on page 18, b. Any person who is your dependent only because he or she lived with you for all of 2009, or c. Any person you claimed as a dependent under a multiple support agreement. See page 19. 2. Your unmarried qualifying child who is not your dependent. 3. Your married qualifying child who is not your dependent only because you can be claimed as a dependent on someone else’s 2009 return. 4. Your child who is neither your dependent nor your qualifying child because of the rule for Children of divorced or separated parents that begins on page 18. you were not divorced or legally separated at the end of 2009, you are considered unmarried if all of the following apply. • You lived apart from your spouse for the last 6 months of 2009. Temporary absences for special circumstances, such as for business, medical care, school, or military service, count as time lived in the home. • You file a separate return from your spouse. • You paid over half the cost of keeping up your home for 2009. • Your home was the main home of your child, stepchild, or foster child for more than half of 2009 (if half or less, see Exception to time lived with you above). • You can claim this child as your dependent or could claim the child except that the child’s other parent can claim him or her under the rule for Children of divorced or separated parents that begins on page 18. Adopted child. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption. Foster child. A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. - 15 - Need more information or forms? See page 96. Form 1040 — Lines 4 Through 6b Nonresident alien spouse. You are consid- ered unmarried for head of household filing status if your spouse was a nonresident alien at any time during the year and you do not choose to treat him or her as a resident alien. To claim head of household filing status, you must also meet Test 1 or Test 2 on page 15. If your spouse died in 2009, you cannot file as qualifying widow(er) with dependent child. Instead, see the instructions for line 2 on page 15. Adopted child. An adopted child is always Exemptions You usually can deduct $3,650 on line 42 for each exemption you can take. You may also be able to take an additional exemption amount on line 42 if you provided housing to a person displaced by the Midwestern storms, tornadoes, or flooding. treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption. Dependent. To find out if someone is your Line 5 Qualifying Widow(er) With Dependent Child Special rules may apply for people who had to relocate beTIP cause of the Midwestern storms, tornadoes, or flooding. For details, see Pub. 4492-B. You can check the box on line 5 and use joint return tax rates for 2009 if all of the following apply. • Your spouse died in 2007 or 2008 and you did not remarry before the end of 2009. • You have a child or stepchild whom you claim as a dependent. This does not include a foster child. • This child lived in your home for all of 2009. If the child did not live with you for the required time, see Exception to time lived with you on this page. • You paid over half the cost of keeping up your home. • You could have filed a joint return with your spouse the year he or she died, even if you did not actually do so. dependent, see the instructions for line 6c that begin on page 17. Exception to time lived with you. Tempo- Line 6b Spouse Check the box on line 6b if either of the following applies. 1. Your filing status is married filing jointly and your spouse cannot be claimed as a dependent on another person’s return. 2. You were married at the end of 2009, your filing status is married filing separately or head of household, and both of the following apply. a. Your spouse had no income and is not filing a return. b. Your spouse cannot be claimed as a dependent on another person’s return. If your filing status is head of household and you check the box on line 6b, enter the name of your spouse on the dotted line next to line 6b. Also, enter your spouse’s social security number in the space provided at the top of your return. rary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time lived in the home. Also see Kidnapped child on page 19, if applicable. A child is considered to have lived with you for all of 2009 if the child was born or died in 2009 and your home was the child’s home for the entire time he or she was alive. Keeping up a home. To find out what is included in the cost of keeping up a home, see Pub. 501. If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. Need more information or forms? See page 96. - 16 - Form 1040 — Line 6c Line 6c—Dependents Dependents and Qualifying Child for Child Tax Credit Follow the steps below to find out if a person qualifies as your dependent, qualifies you to take the child tax credit, or both. If you have more than four dependents, check the box to the left of line 6c and attach a statement to your return with the information required in columns (1) through (4). 1. Do you have a child who meets the conditions to be your qualifying child? Yes. Go to Step 2. No. Go to Step 4 on page 18. Step 2 Is Your Qualifying Child Your Dependent? TIP Special rules may apply for people who had to relocate because of the Midwestern storms, tornadoes, or flooding. For details, see Pub. 4492-B. 1. Was the child a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico? (See Pub. 519 for the definition of a U.S. national or U.S. resident alien. If the child was adopted, see Exception to citizen test on page 19.) Yes. Continue No. STOP Step 1 Do You Have a Qualifying Child? 2. Was the child married? Yes. See Married person on page 19. You cannot claim this child as a dependent. Go to Form 1040, line 7. No. Continue A qualifying child is a child who is your... Son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew) 3. Could you, or your spouse if filing jointly, be claimed as a dependent on someone else’s 2009 tax return? See Steps 1, 2, and 4. Yes. You cannot claim any dependents. Go to Form 1040, line 7. No. You can claim this child as a dependent. Complete Form 1040, line 6c, columns (1) through (3) for this child. Then, go to Step 3. AND was ... Under age 19 at the end of 2009 and younger than you (or your spouse, if filing jointly) or Under age 24 at the end of 2009, a student (see page 20), and younger than you (or your spouse, if filing jointly) or Any age and permanently and totally disabled (see page 19) Step 3 Does Your Qualifying Child Qualify You for the Child Tax Credit? No. STOP 1. Was the child under age 17 at the end of 2009? Yes. Continue This child is not a qualifying child for the child tax credit. Go to Form 1040, line 7. 2. Was the child a U.S. citizen, U.S. national, or U.S. resident alien? (See Pub. 519 for the definition of a U.S. national or U.S. resident alien. If the child was adopted, see Exception to citizen test on page 19.) Yes. This child is a qualifying child for the child tax credit. Check the box on Form 1040, line 6c, column (4). No. STOP AND Who did not provide over half of his or her own support for 2009 (see Pub. 501) AND Who is not filing a joint return for 2009 (or is filing a joint return for 2009 only as a claim for refund) AND Who lived with you for more than half of 2009. If the child did not live with you for the required time, see Exception to time lived with you on page 19. This child is not a qualifying child for the child tax credit. Go to Form 1040, line 7. CAUTION ! If the child meets the conditions to be a qualifying child of any other person (other than your spouse if filing jointly) for 2009, see Qualifying child of more than one person on page 19. - 17 - Need more information or forms? See page 96. Form 1040 — Line 6c 1. Does any person meet the conditions to be your qualifying relative? Yes. Continue No. STOP Step 4 Is Your Qualifying Relative Your Dependent? Go to Form 1040, line 7. A qualifying relative is a person who is your... Son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild) or Brother, sister, or a son or daughter of either of them (for example, your niece or nephew) or Father, mother, or an ancestor or sibling of either of them (for example, your grandmother, grandfather, aunt, or uncle) or Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law or Any other person (other than your spouse) who lived with you all year as a member of your household if your relationship did not violate local law. If the person did not live with you for the required time, see Exception to time lived with you on page 19 2. Was your qualifying relative a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico? (See Pub. 519 for the definition of a U.S. national or U.S. resident alien. If your qualifying relative was adopted, see Exception to citizen test on page 19.) Yes. Continue No. STOP You cannot claim this person as a dependent. Go to Form 1040, line 7. 3. Was your qualifying relative married? Yes. See Married person on page 19. No. Continue 4. Could you, or your spouse if filing jointly, be claimed as a dependent on someone else’s 2009 tax return? See Steps 1, 2, and 4. Yes. STOP You cannot claim any dependents. Go to Form 1040, line 7. No. You can claim this person as a dependent. Complete Form 1040, line 6c, columns (1) through (3). Do not check the box on Form 1040, line 6c, column (4). AND Definitions and Special Rules who was not... A qualifying child (see Step 1) of any taxpayer for 2009. For this purpose, a person is not a taxpayer if he or she is not required to file a U.S. income tax return and either does not file such a return or files only to get a refund of withheld income tax Adopted child. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption. Adoption taxpayer identification numbers (ATINs). If you have a AND who... Had gross income of less than $3,650 in 2009. If the person was permanently and totally disabled, see Exception to gross income test on page 19 dependent who was placed with you for legal adoption and you do not know his or her SSN, you must get an ATIN for the dependent from the IRS. See Form W-7A for details. If the dependent is not a U.S. citizen or resident alien, apply for an ITIN instead, using Form W-7. See page 14. Children of divorced or separated parents. A child will be treated AND For whom you provided... Over half of his or her support in 2009. But see the special rule for Children of divorced or separated parents that begins on this page, Multiple support agreements on page 19, and Kidnapped child on page 19. as the qualifying child or qualifying relative of his or her noncustodial parent (defined on page 19) if all of the following conditions apply. 1. The parents are divorced, legally separated, separated under a written separation agreement, or lived apart at all times during the last 6 months of 2009 (whether or not they are or were married). 2. The child received over half of his or her support for 2009 from the parents (and the rules on Multiple support agreements on page 19 do not apply). Support of a child received from a parent’s spouse is treated as provided by the parent. 3. The child is in custody of one or both of the parents for more than half of 2009. 4. Either of the following applies. a. The custodial parent signs Form 8332 or a substantially similar statement that he or she will not claim the child as a dependent for 2009, and the noncustodial parent attaches a copy of the form or statement to his or her return. If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. See Post-1984 and pre-2009 decree or agreement and Post-2008 decree or agreement on page 19. Need more information or forms? See page 96. - 18 - Form 1040 — Line 6c b. A pre-1985 decree of divorce or separate maintenance or written separation agreement between the parents provides that the noncustodial parent can claim the child as a dependent, and the noncustodial parent provides at least $600 for support of the child during 2009. If conditions (1) through (4) apply, only the noncustodial parent can claim the child for purposes of the dependency exemption (line 6c) and the child tax credits (lines 51 and 65). However, this special rule does not apply to head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, the earned income credit, or the health coverage tax credit. See Pub. 501 for details. Custodial and noncustodial parents. The custodial parent is the parent with whom the child lived for the greater number of nights in 2009. The noncustodial parent is the other parent. If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. For details and an exception for a parent who works at night, see Pub. 501. Post-1984 and pre-2009 decree or agreement. The decree or agreement must state all three of the following. 1. The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support. 2. The other parent will not claim the child as a dependent. 3. The years for which the claim is released. The noncustodial parent must attach all of the following pages from the decree or agreement. Cover page (include the other parent’s SSN on that page). • The pages that include all the information identified in (1) through (3) above. • Signature page with the other parent’s signature and date of agreement. Married person. If the person is married, you cannot claim that person as your dependent if he or she files a joint return. But this rule does not apply if the return is filed only as a claim for refund and no tax liability would exist for either spouse if they had filed separate returns. If the person meets this exception, go to Step 2, question 3, on page 17 (for a qualifying child) or Step 4, question 4, on page 18 (for a qualifying relative). If the person does not meet this exception, you cannot claim this person as a dependent. Go to Form 1040, line 7. Multiple support agreements. If no one person contributed over half of the support of your relative (or a person who lived with you all year as a member of your household) but you and another person(s) provided more than half of your relative’s support, special rules may apply that would treat you as having provided over half of the support. For details, see Pub. 501. Permanently and totally disabled. A person is permanently and totally disabled if, at any time in 2009, the person cannot engage in any substantial gainful activity because of a physical or mental condition and a doctor has determined that this condition has lasted or can be expected to last continuously for at least a year or can be expected to lead to death. Qualifying child of more than one person. Even if a child meets the conditions to be the qualifying child of more than one person, only one person can claim the child as a qualifying child for all of the following tax benefits, unless the special rule for Children of divorced or separated parents beginning on page 18 applies. 1. Dependency exemption (line 6c). 2. Child tax credits (lines 51 and 65). 3. Head of household filing status (line 4). 4. Credit for child and dependent care expenses (line 48). 5. Exclusion for dependent care benefits (Form 2441, Part III). 6. Earned income credit (lines 64a and 64b). No other person can take any of the six tax benefits listed above unless he or she has a different qualifying child. If you and any other person can claim the child as a qualifying child, the following rules apply. • If only one of the persons is the child’s parent, the child is treated as the qualifying child of the parent. • If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time in 2009. If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for 2009. • If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for 2009. • If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for 2009, but only if that person’s AGI is higher than the highest AGI of any parent of the child. Example. Your daughter meets the conditions to be a qualifying child for both you and your mother. Your daughter does not meet the conditions to be a qualifying child of any other person, including her other parent. Under the rules above, you can claim your daughter as a qualifying child for all of the six tax benefits listed above for which you otherwise qualify. Your mother cannot claim any of the six tax benefits listed above unless she has a different qualifying child. However, if your mother’s AGI is higher than yours and the other parent’s and you do not claim your daughter as a qualifying child, your daughter is the qualifying child of your mother. For more details and examples, see Pub. 501. If you will be claiming the child as a qualifying child, go to Step 2 on page 17. Otherwise, stop; you cannot claim any benefits based on this child. Go to Form 1040, line 7. Social security number. You must enter each dependent’s social CAUTION ! You must attach the required information even if you filed it with your return in an earlier year. Post-2008 decree or agreement. If the divorce decree or separation agreement went into effect after 2008, the noncustodial parent cannot attach pages from the decree or agreement instead of Form 8332. The custodial parent must sign, and the noncustodial parent must attach to his or her return, either Form 8332 or a substantially similar statement the only purpose of which is to release the custodial parent’s claim to an exemption for a child. Exception to citizen test. If you are a U.S. citizen or U.S. national and your adopted child lived with you all year as a member of your household, that child meets the citizen test. Exception to gross income test. If your relative (including a person who lived with you all year as a member of your household) is permanently and totally disabled (defined on this page), certain income for services performed at a sheltered workshop may be excluded for this test. For details, see Pub. 501. Exception to time lived with you. Temporary absences by you or the other person for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the person lived with you. Also see Children of divorced or separated parents that begins on page 18 or Kidnapped child below. A person is considered to have lived with you for all of 2009 if the person was born or died in 2009 and your home was this person’s home for the entire time he or she was alive. Foster child. A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Kidnapped child. If your child is presumed by law enforcement authorities to have been kidnapped by someone who is not a family member, you may be able to take the child into account in determining your eligibility for head of household or qualifying widow(er) filing status, the dependency exemption, the child tax credit, and the earned income credit (EIC). For details, see Pub. 501 (Pub. 596 for the EIC). security number (SSN). Be sure the name and SSN entered agree - 19 - Need more information or forms? See page 96. Form 1040 — Line 6c with the dependent’s social security card. Otherwise, at the time we process your return, we may disallow the exemption claimed for the dependent and reduce or disallow any other tax benefits (such as the child tax credit) based on that dependent. If the name or SSN on the dependent’s social security card is not correct, call the Social Security Administration at 1-800-772-1213. For details on how your dependent can get an SSN, see page 14. If your dependent will not have a number by the date your return is due, see What if You Cannot File on Time? on page 8. If your dependent child was born and died in 2009 and you do not have an SSN for the child, enter “Died” in column (2) and attach a copy of the child’s birth certificate, death certificate, or hospital records. The document must show the child was born alive. Student. A student is a child who during any part of 5 calendar months of 2009 was enrolled as a full-time student at a school, or took a full-time, on-farm training course given by a school or a state, county, or local government agency. A school includes a technical, trade, or mechanical school. It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Need more information or forms? See page 96. - 20 - Form 1040 — Line 7 filed a chapter 11 case and that explains how income and withheld income tax reported to you on Forms W-2 and 1099 are allocated between you and the estate. For more details, including acceptable allocation methods, see Notice 2006-83, 2006-40 I.R.B. 596, available at www.irs.gov/irb/2006-40_IRB/ar12.html. W-2. They are not included as income in box 1. See Pub. 531 for more details. Income Foreign-Source Income You must report unearned income, such as interest, dividends, and pensions, from sources outside the United States unless exempt by law or a tax treaty. You must also report earned income, such as wages and tips, from sources outside the United States. If you worked abroad, you may be able to exclude part or all of your foreign earned income. For details, see Pub. 54 and Form 2555 or 2555-EZ. Foreign retirement plans. If you were a CAUTION ! You may owe social security and Medicare tax on unreported or allocated tips. See the instructions for line 57 on page 45. Community Property States Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. If you and your spouse lived in a community property state, you must usually follow state law to determine what is community income and what is separate income. For details, see Pub. 555. California domestic partners. A registered beneficiary of a foreign retirement plan, you may have to report the undistributed income earned in your plan. However, if you were the beneficiary of a Canadian registered retirement plan, see Form 8891 to find out if you can elect to defer tax on the undistributed income. Report distributions from foreign pension plans on lines 16a and 16b. Foreign accounts and trusts. You must complete Part III of Schedule B if you: • Had a foreign account, or • Received a distribution from, or were a grantor of, or a transferor to, a foreign trust. domestic partner in California must report all wages, salaries, and other compensation received for his or her personal services on his or her own return. Therefore, a registered domestic partner cannot report half the combined income earned by the individual and his or her domestic partner as a married person filing separately does in California. Rounding Off to Whole Dollars You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3. If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total. Chapter 11 Bankruptcy Cases If you are a debtor in a chapter 11 bankruptcy case, income taxable to the bankruptcy estate and reported on the estate’s income tax return includes: • Earnings from services you performed after the beginning of the case (both wages and self-employment income), and • Income from property described in section 541 of title 11 of the U.S. Code that you either owned when the case began or that you acquired after the case began and before the case was closed, dismissed, or converted to a case under a different chapter. Because this income is taxable to the estate, do not include this income on your own individual income tax return. The only exception is for purposes of figuring your self-employment tax. For that purpose, you must take into account all your self-employment income for the year from services performed both before and after the beginning of the case. Also, you (or the trustee, if one is appointed) must allocate between you and the bankruptcy estate the wages, salary, or other compensation and withheld income tax reported to you on Form W-2. A similar allocation is required for income and withheld income tax reported to you on Forms 1099. You must also attach a statement to your tax return that indicates you Line 7 Wages, Salaries, Tips, etc. Enter the total of your wages, salaries, tips, etc. If a joint return, also include your spouse’s income. For most people, the amount to enter on this line should be shown in box 1 of their Form(s) W-2. But the following types of income must also be included in the total on line 7. • Wages received as a household employee for which you did not receive a Form W-2 because your employer paid you less than $1,700 in 2009. Also, enter ‘‘HSH’’ and the amount not reported on Form W-2 on the dotted line next to line 7. • Tip income you did not report to your employer. Also include allocated tips shown on your Form(s) W-2 unless you can prove that you received less. Allocated tips should be shown in box 8 of your Form(s) • Dependent care benefits, which should be shown in box 10 of your Form(s) W-2. But first complete Form 2441 to see if you can exclude part or all of the benefits. • Employer-provided adoption benefits, which should be shown in box 12 of your Form(s) W-2 with code T. But see the Instructions for Form 8839 to find out if you can exclude part or all of the benefits. You may also be able to exclude amounts if you adopted a child with special needs and the adoption became final in 2009. • Scholarship and fellowship grants not reported on Form W-2. Also, enter “SCH” and the amount on the dotted line next to line 7. However, if you were a degree candidate, include on line 7 only the amounts you used for expenses other than tuition and course-related expenses. For example, amounts used for room, board, and travel must be reported on line 7. • Excess salary deferrals. The amount deferred should be shown in box 12 of your Form W-2, and the “Retirement plan” box in box 13 should be checked. If the total amount you (or your spouse if filing jointly) deferred for 2009 under all plans was more than $16,500 (excluding catch-up contributions as explained below), include the excess on line 7. This limit is (a) $11,500 if you only have SIMPLE plans, or (b) $19,500 for section 403(b) plans if you qualify for the 15-year rule in Pub. 571. Although designated Roth contributions are subject to this limit, do not include the excess attributable to such contributions on line 7. They are already included as income in box 1 of your Form W-2. A higher limit may apply to participants in section 457(b) deferred compensation plans for the 3 years before retirement age. Contact your plan administrator for more information. If you were age 50 or older at the end of 2009, your employer may have allowed an additional deferral (catch-up contributions) of up to $5,500 ($2,500 for section 401(k)(11) and SIMPLE plans). This additional deferral amount is not subject to the overall limit on elective deferrals. CAUTION ! You cannot deduct the amount deferred. It is not included as income in box 1 of your Form W-2. • Disability pensions shown on Form 1099-R if you have not reached the minimum retirement age set by your employer. - 21 - Need more information or forms? See page 96. Form 1040 — Lines 7 Through 9b But see Insurance Premiums for Retired Public Safety Officers on page 25. Disability pensions received after you reach minimum retirement age and other payments shown on Form 1099-R (other than payments from an IRA*) are reported on lines 16a and 16b. Payments from an IRA are reported on lines 15a and 15b. • Corrective distributions from a retirement plan shown on Form 1099-R of excess salary deferrals and excess contributions (plus earnings). But do not include distributions from an IRA* on line 7. Instead, report distributions from an IRA on lines 15a and 15b. • Wages from Form 8919, line 6. *This includes a Roth, SEP, or SIMPLE IRA. Line 8b Tax-Exempt Interest If you received any tax-exempt interest, such as from municipal bonds, each payer should send you a Form 1099-INT. Your tax-exempt interest, including any exempt-interest dividends from a mutual fund or other regulated investment company, should be included in box 8 of Form 1099-INT. Enter the total on line 8b. Do not include interest earned on your IRA, health savings account, Archer or Medicare Advantage MSA, or Coverdell education savings account. Were You a Statutory Employee? If you were, the “Statutory employee” box in box 13 of your Form W-2 should be checked. Statutory employees include full-time life insurance salespeople, certain agent or commission drivers and traveling salespeople, and certain homeworkers. If you have related business expenses to deduct, report the amount shown in box 1 of your Form W-2 on Schedule C or C-EZ along with your expenses. Line 9a Ordinary Dividends Each payer should send you a Form 1099-DIV. Enter your total ordinary dividends on line 9a. This amount should be shown in box 1a of Form(s) 1099-DIV. You must fill in and attach Schedule B if the total is over $1,500 or you received, as a nominee, ordinary dividends that actually belong to someone else. Nondividend Distributions Some distributions are a return of your cost (or other basis). They will not be taxed until you recover your cost (or other basis). You must reduce your cost (or other basis) by these distributions. After you get back all of your cost (or other basis), you must report these distributions as capital gains on Schedule D. For details, see Pub. 550. Missing or Incorrect Form W-2? Your employer is required to provide or send Form W-2 to you no later than February 1, 2010. If you do not receive it by early February, use TeleTax topic 154 (see page 93) to find out what to do. Even if you do not get a Form W-2, you must still report your earnings on line 7. If you lose your Form W-2 or it is incorrect, ask your employer for a new one. Line 8a Taxable Interest Each payer should send you a Form 1099-INT or Form 1099-OID. Enter your total taxable interest income on line 8a. But you must fill in and attach Schedule B if the total is over $1,500 or any of the other conditions listed at the beginning of the Schedule B instructions apply to you. Interest credited in 2009 on deposits that you could not withdraw because of the bankruptcy or insolvency of the financial institution may not have to be included in your 2009 income. For details, see Pub. 550. Dividends on insurance policies are a partial return of the premiums you paid. Do not report them as dividends. Include them in income on line 21 only if they exceed the total of all net premiums you paid for the contract. TIP Line 9b Qualified Dividends Enter your total qualified dividends on line 9b. Qualified dividends are also included in the ordinary dividend total required to be shown on line 9a. Qualified dividends are eligible for a lower tax rate than other ordinary income. Generally, these dividends are shown in box 1b of Form(s) 1099-DIV. See Pub. 550 for the definition of qualified dividends if you received dividends not reported on Form 1099-DIV. Exception. Some dividends may be re- If you get a 2009 Form 1099-INT for U.S. savings TIP bond interest that includes amounts you reported before 2009, see Pub. 550. ported as qualified dividends in box 1b of Form 1099-DIV but are not qualified dividends. These include: • Dividends you received as a nominee. See the Schedule B instructions. • Dividends you received on any share of stock that you held for less than 61 days during the 121-day period that began 60 days before the ex-dividend date. The ex-dividend date is the first date following the declaration of a dividend on which the purchaser of a stock is not entitled to receive the next dividend payment. When counting the number of days you held the stock, include the day you disposed of the stock but not the day you acquired it. See the examples on this page and page 23. Also, when counting the number of days you held the stock, you cannot count certain days during which your risk of loss was diminished. See Pub. 550 for more details. • Dividends attributable to periods totaling more than 366 days that you received on any share of preferred stock held for less than 91 days during the 181-day period that began 90 days before the ex-dividend date. When counting the number of days you held the stock, you cannot count certain days during which your risk of loss was diminished. See Pub. 550 for more details. Preferred dividends attributable to periods totaling less than 367 days are subject to the 61-day holding period rule on this page. • Dividends on any share of stock to the extent that you are under an obligation (including a short sale) to make related payments with respect to positions in substantially similar or related property. • Payments in lieu of dividends, but only if you know or have reason to know that the payments are not qualified dividends. Example 1. You bought 5,000 shares of XYZ Corp. common stock on July 9, 2009. XYZ Corp. paid a cash dividend of 10 cents per share. The ex-dividend date was July 17, 2009. Your Form 1099-DIV from XYZ Corp. shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). However, you sold the 5,000 shares on August 12, 2009. You held your shares of XYZ Corp. for only 34 days of the 121-day period (from July 10, 2009, through August 12, 2009). The 121-day period began on May 18, 2009 (60 days before the ex-dividend date), and ended on September 15, 2009. You have no qualified dividends from XYZ Corp. because you held the XYZ stock for less than 61 days. Example 2. Assume the same facts as in Example 1 except that you bought the stock on July 16, 2009 (the day before the ex-dividend date), and you sold the stock on September 17, 2009. You held the stock for 63 days (from July 17, 2009, through September 17, 2009). The $500 of qualified dividends shown in box 1b of Form 1099-DIV are all qualified dividends because you held the stock for 61 days of the 121-day period (from July 17, 2009, through September 15, 2009). Need more information or forms? See page 96. - 22 - Form 1040 — Lines 9b Through 10 Example 3. You bought 10,000 shares of ABC Mutual Fund common stock on July 9, 2009. ABC Mutual Fund paid a cash dividend of 10 cents a share. The ex-dividend date was July 17, 2009. The ABC Mutual Fund advises you that the portion of the dividend eligible to be treated as qualified dividends equals 2 cents per share. Your Form 1099-DIV from ABC Mutual Fund shows total ordinary dividends of $1,000 and qualified dividends of $200. However, you sold the 10,000 shares on August 12, 2009. You have no qualified dividends from ABC Mutual Fund because you held the ABC Mutual Fund stock for less than 61 days. that applies. See the instructions for line 44 that begin on page 37 for details. 2008 and you deducted state and local income taxes on line 5 of your 2008 Schedule A, use the worksheet below to see if any of your refund is taxable. Exception. See Itemized Deduction Re- Line 10 Taxable Refunds, Credits, or Offsets of State and Local Income Taxes None of your refund is taxable if, in the year you paid the tax, you either (a) did not itemize deductions, or (b) elected to deduct state and local general sales taxes instead of state and local income taxes. TIP Be sure you use the Qualified Dividends and Capital Gain TIP Tax Worksheet or the Schedule D Tax Worksheet, whichever applies, to figure your tax. Your tax may be less if you use the worksheet If you received a refund, credit, or offset of state or local income taxes in 2009, you may receive a Form 1099-G. If you chose to apply part or all of the refund to your 2009 estimated state or local income tax, the amount applied is treated as received in 2009. If the refund was for a tax you paid in coveries in Pub. 525 instead of using the worksheet below if any of the following applies. 1. You received a refund in 2009 that is for a tax year other than 2008. 2. You received a refund other than an income tax refund, such as a general sales tax or real property tax refund, in 2009 of an amount deducted or credit claimed in an earlier year. 3. The amount on your 2008 Form 1040, line 42, was more than the amount on your 2008 Form 1040, line 41. 4. Your 2008 state and local income tax refund is more than your 2008 state and local income tax deduction minus the amount you could have deducted as your 2008 state and local general sales taxes. State and Local Income Tax Refund Worksheet—Line 10 Before you begin: 1. 2. Keep for Your Records Be sure you have read the Exception above to see if you can use this worksheet instead of Pub. 525 to figure if any of your refund is taxable. Enter the income tax refund from Form(s) 1099-G (or similar statement). But do not enter more than the amount of your state and local income taxes shown on your 2008 Schedule A, line 5 . . . . . . . . . . . 1. Enter your total allowable itemized deductions from your 2008 Schedule A, line 29 . . . . 2. Note. If the filing status on your 2008 Form 1040 was married filing separately and your spouse itemized deductions in 2008, skip lines 3 through 9, enter the amount from line 2 on line 10, and go to line 11. 3. 4. 5. 6. 7. 8. 9. 10. Enter the amount shown below for the filing status claimed on your 2008 Form 1040. • Single or married filing separately —$5,450 • Married filing jointly or qualifying widow(er) —$10,900 • Head of household —$8,000 3. Did you fill in line 39a on your 2008 Form 1040? No. Enter -0-. Yes. Multiply the number in the box on line 39a of your 2008 Form 1040 by $1,050 ($1,350 if your 2008 filing status was single or head of household). 4. Enter any state or local real estate taxes shown on your 2008 Schedule A, line 6. Do not include foreign real estate taxes . . . . . . . . . . . . . . . . . . . . 5. Enter $500 ($1,000 if married filing jointly) . . . . . . . . . . . . . . . . . . . . . . 6. Enter the smaller of line 5 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Enter any net disaster loss from your 2008 Form 4684, line 18a . . . . . . . 8. Add lines 3, 4, 7, and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. Is the amount on line 9 less than the amount on line 2? } } 11. None of your refund is taxable. Yes. Subtract line 9 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Taxable part of your refund. Enter the smaller of line 1 or line 10 here and on Form 1040, line 10 . . 11. No. STOP - 23 - Need more information or forms? See page 96. Form 1040 — Lines 10 Through 15b 5. You made your last payment of 2008 estimated state or local income tax in 2009. 6. You owed alternative minimum tax in 2008. 7. You could not use the full amount of credits you were entitled to in 2008 because the total credits were more than the amount shown on your 2008 Form 1040, line 46. 8. You could be claimed as a dependent by someone else in 2008. 9. You had to use the Itemized Deductions Worksheet in the 2008 Instructions for Schedules A&B because your 2008 adjusted gross income was over $159,950 ($79,975 if married filing separately) and both of the following apply. a. You could not deduct all of the amount on the 2008 Itemized Deductions Worksheet, line 1. b. The amount on line 8 of that 2008 worksheet would be more than the amount on line 4 of that worksheet if the amount on line 4 were reduced by 80% of the refund you received in 2009. the box on that line. If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on line 13 only the amount that belongs to you. Attach a statement showing the full amount you received and the amount you received as a nominee. See the Schedule B instructions for filing requirements for Forms 1099-DIV and 1096. If you rolled over the distribution into a qualified plan other than an IRA or you made the rollover in 2010, attach a statement explaining what you did. Exception 2. If any of the following apply, enter the total distribution on line 15a and see Form 8606 and its instructions to figure the amount to enter on line 15b. 1. You received a distribution from an IRA (other than a Roth IRA) and you made nondeductible contributions to any of your traditional or SEP IRAs for 2009 or an earlier year. If you made nondeductible contributions to these IRAs for 2009, also see Pub. 590. 2. You received a distribution from a Roth IRA. But if either (a) or (b) below applies, enter -0- on line 15b; you do not have to see Form 8606 or its instructions. a. Distribution code T is shown in box 7 of Form 1099-R and you made a contribution (including a conversion) to a Roth IRA for 2004 or an earlier year. b. Distribution code Q is shown in box 7 of Form 1099-R. 3. You converted part or all of a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2009. 4. You had a 2008 or 2009 IRA contribution returned to you, with the related earnings or less any loss, by the due date (including extensions) of your tax return for that year. 5. You made excess contributions to your IRA for an earlier year and had them returned to you in 2009. 6. You recharacterized part or all of a contribution to a Roth IRA as a traditional IRA contribution, or vice versa. Exception 3. If the distribution is a qualified charitable distribution (QCD), enter the total distribution on line 15a. If the total amount distributed is a QCD, enter -0- on line 15b. If only part of the distribution is a QCD, enter the part that is not a QCD on line 15b unless Exception 2 applies to that part. Enter “QCD” next to line 15b. If you do not have to file Schedule D, use the Qualified DiviTIP dends and Capital Gain Tax Worksheet on page 39 to figure your tax. Your tax is usually less if you use this worksheet. Line 14 Other Gains or (Losses) If you sold or exchanged assets used in a trade or business, see the Instructions for Form 4797. Line 11 Alimony Received Enter amounts received as alimony or separate maintenance. You must let the person who made the payments know your social security number. If you do not, you may have to pay a $50 penalty. For more details, see Pub. 504. Lines 15a and 15b IRA Distributions TIP 4492-B. You should receive a Form 1099-R showing the amount of any distribution from your IRA. Unless otherwise noted in the line 15a and 15b instructions, an IRA includes a traditional IRA, Roth IRA, simplified employee pension (SEP) IRA, and a savings incentive match plan for employees (SIMPLE) IRA. Except as provided below, leave line 15a blank and enter the total distribution on line 15b. Exception 1. Enter the total distribution on Special rules may apply to your IRA distributions if your main home was in a Midwestern disaster area. For details, see Pub. Line 12 Business Income or (Loss) If you operated a business or practiced your profession as a sole proprietor, report your income and expenses on Schedule C or C-EZ. Line 13 Capital Gain or (Loss) If you had a capital gain or loss, including any capital gain distributions or a capital loss carryover from 2008, you must complete and attach Schedule D. Exception. You do not have to file Sched- ule D if both of the following apply. • The only amounts you have to report on Schedule D are capital gain distributions from Form(s) 1099-DIV, box 2a, or substitute statements. • None of the Form(s) 1099-DIV or substitute statements have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain). If both of the above apply, enter your total capital gain distributions (from box 2a of Form(s) 1099-DIV) on line 13 and check line 15a if you rolled over part or all of the distribution from one: • IRA to another IRA of the same type (for example, from one traditional IRA to another traditional IRA), • SEP or SIMPLE IRA to a traditional IRA, or • IRA to a qualified plan other than an IRA. Also, enter “Rollover” next to line 15b. If the total distribution was rolled over in a qualified rollover, enter -0- on line 15b. If the total distribution was not rolled over in a qualified rollover, enter the part not rolled over on line 15b unless Exception 2 applies to the part not rolled over. Generally, a qualified rollover must be made within 60 days after the day you received the distribution. For more details on rollovers, see Pub. 590. A QCD is a distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions (with certain exceptions). You must have been at least age 701⁄2 when the distribution was made. Your total QCDs for the year cannot be more than $100,000. (On a joint return, your spouse can also have a QCD of up to $100,000.) The amount of the QCD is limited to the amount that would otherwise be included in your income. If your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income. See Pub. 590 for details. Need more information or forms? See page 96. - 24 - Form 1040 — Lines 15b Through 16b CAUTION ! You cannot claim a charitable contribution deduction for any QCD not included in your income. in a Midwestern disaster area. For details, see Pub. 4492-B. You should receive a Form 1099-R showing the amount of your pension and annuity payments, including distributions from 401(k), 403(b), and governmental 457(b) plans. See page 27 for details on rollovers and lump-sum distributions. Do not include the following payments on lines 16a and 16b. Instead, report them on line 7. • Disability pensions received before you reach the minimum retirement age set by your employer. • Corrective distributions (including any earnings) of excess salary deferrals or excess contributions to retirement plans. The plan must advise you of the year(s) the distributions are includible in income. Insurance Premiums for Retired Public Safety Officers If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for coverage by an accident or health plan or a long-term care insurance contract. You can do this only if you retired because of disability or because you reached normal retirement age. The premiums can be for coverage for you, your spouse, or dependents. The distribution must be from a plan maintained by the employer from which you retired as a public safety officer. Also, the distribution must be made directly from the plan to the provider of the accident or health plan or long-term care insurance contract. You can exclude from income the smaller of the amount of the premiums or $3,000. You can only make this election for amounts that would otherwise be included in your income. An eligible retirement plan is a governmental plan that is: • A qualified trust, • A section 403(a) plan, • A section 403(b) plan, or • A section 457(b) plan. If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. The amount shown in box 2a of Form 1099-R does not reflect the exclusion. Report your total distributions on line 16a and the taxable amount on line 16b. Enter “PSO” next to line 16b. If you are retired on disability and reporting your disability pension on line 7, include only the taxable amount on that line and enter “PSO” and the amount excluded on the dotted line next to line 7. Exception 4. If the distribution is a qualified health savings account (HSA) funding distribution (HFD), enter the total distribution on line 15a. If the total amount distributed is an HFD and you elect to exclude it from income, enter -0- on line 15b. If only part of the distribution is an HFD and you elect to exclude that part from income, enter the part that is not an HFD on line 15b unless Exception 2 applies to that part. Enter “HFD” next to line 15b. An HFD is a distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to your HSA. If eligible, you generally can elect to exclude an HFD from your income once in your lifetime. You cannot exclude more than the limit on HSA contributions or more than the amount that would otherwise be included in your income. If your IRA includes nondeductible contributions, the HFD is first considered to be paid out of otherwise taxable income. See Pub. 969 for details. TIP Attach Form(s) 1099-R to Form 1040 if any federal income tax was withheld. Fully Taxable Pensions and Annuities If your pension or annuity is fully taxable, enter it on line 16b; do not make an entry on line 16a. Your payments are fully taxable if (a) you did not contribute to the cost (see page 27) of your pension or annuity, or (b) you got your entire cost back tax free before 2009. But see Insurance Premiums for Retired Public Safety Officers on this page. Fully taxable pensions and annuities also include military retirement pay shown on Form 1099-R. For details on military disability pensions, see Pub. 525. If you received a Form RRB-1099-R, see Pub. 575 to find out how to report your benefits. The amount of an HFD reduces the amount you can contribute to your HSA for the year. If you CAUTION fail to maintain eligibility for an HSA for the 12 months following the month of the HFD, you may have to report the HFD as income and pay an additional tax. See Form 8889, Part III. See Pub. 590 for details. ! More than one exception applies. If more than one exception applies, attach a statement showing the amount of each exception, instead of making an entry next to line 15b. For example: “Line 15b – $1,000 Rollover and $500 HFD.” More than one distribution. If you (or your spouse if filing jointly) received more than one distribution, figure the taxable amount of each distribution and enter the total of the taxable amounts on line 15b. Enter the total amount of those distributions on line 15a. Partially Taxable Pensions and Annuities Enter the total pension or annuity payments you received in 2009 on line 16a. If your Form 1099-R does not show the taxable amount, you must use the General Rule explained in Pub. 939 to figure the taxable part to enter on line 16b. But if your annuity starting date (defined on this page) was after July 1, 1986, see Simplified Method on this page to find out if you must use that method to figure the taxable part. You can ask the IRS to figure the taxable part for you for a $500 fee. For details, see Pub. 939. If your Form 1099-R shows a taxable amount, you can report that amount on line 16b. But you may be able to report a lower taxable amount by using the General Rule or the Simplified Method or if the exclusion for retired public safety officers, discussed next, applies. Annuity Starting Date Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan’s obligations became fixed. You may have to pay an additional tax if you received an early distribution from your CAUTION IRA and the total was not rolled over. See the instructions for line 58 on page 45 for details. ! Simplified Method You must use the Simplified Method if either of the following applies. 1. Your annuity starting date (defined above) was after July 1, 1986, and you used this method last year to figure the taxable part. 2. Your annuity starting date was after November 18, 1996, and both of the following apply. a. The payments are from a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity. Lines 16a and 16b Pensions and Annuities TIP Special rules may apply if you received a distribution from a profit-sharing or retirement plan and your main home was - 25 - Need more information or forms? See page 96. Form 1040 — Lines 16a and 16b b. On your annuity starting date, either you were under age 75 or the number of years of guaranteed payments was fewer than 5. See Pub. 575 for the definition of guaranteed payments. If you must use the Simplified Method, complete the worksheet below to figure the taxable part of your pension or annuity. For more details on the Simplified Method, see Pub. 575 or Pub. 721 for U.S. Civil Service retirement benefits. the taxable part of your annuity. Do not use the worksheet below. CAUTION ! If you received U.S. Civil Service retirement benefits and you chose the alternative annuity option, see Pub. 721 to figure Age (or Combined Ages) at Annuity Starting Date If you are the retiree, use your age on the annuity starting date. If you are the survivor of a retiree, use the retiree’s age on his or her annuity starting date. But if your annu- Simplified Method Worksheet—Lines 16a and 16b Before you begin: Keep for Your Records If you are the beneficiary of a deceased employee or former employee who died before August 21, 1996, include any death benefit exclusion that you are entitled to (up to $5,000) in the amount entered on line 2 below. Note. If you had more than one partially taxable pension or annuity, figure the taxable part of each separately. Enter the total of the taxable parts on Form 1040, line 16b. Enter the total pension or annuity payments received in 2009 on Form 1040, line 16a. 1. Enter the total pension or annuity payments received in 2009. Also, enter this amount on Form 1040, line 16a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Enter your cost in the plan at the annuity starting date . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Note. If you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year’s worksheet on line 4 below (even if the amount of your pension or annuity has changed). Otherwise, go to line 3. 3. Enter the appropriate number from Table 1 below. But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Divide line 2 by the number on line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Multiply line 4 by the number of months for which this year’s payments were made. If your annuity starting date was before 1987, skip lines 6 and 7 and enter this amount on line 8. Otherwise, go to line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Enter the amount, if any, recovered tax free in years after 1986. If you completed this worksheet last year, enter the amount from line 10 of last year’s worksheet . . . . . . . . . . . . 6. 7. Subtract line 6 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. Enter the smaller of line 5 or line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. Taxable amount. Subtract line 8 from line 1. Enter the result, but not less than zero. Also, enter this amount on Form 1040, line 16b. If your Form 1099-R shows a larger amount, use the amount on this line instead of the amount from Form 1099-R. If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers on page 25 before entering an amount on line 16b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 10. Was your annuity starting date before 1987? Yes. No. STOP Leave line 10 blank. Add lines 6 and 8. This is the amount you have recovered tax free through 2009. You will need this number when you fill out this worksheet next year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Table 1 for Line 3 Above IF the age at annuity starting date (see page 25) was . . . 55 or under 56 – 60 61 – 65 66 – 70 71 or older AND your annuity starting date was — before November 19, 1996, after November 18, 1996, enter on line 3 . . . enter on line 3 . . . 300 260 240 170 120 Table 2 for Line 3 Above 360 310 260 210 160 IF the combined ages at annuity starting date (see page 25) were . . . 110 or under 111 – 120 121 – 130 131 – 140 141 or older THEN enter on line 3 . . . 410 360 310 260 210 Need more information or forms? See page 96. - 26 - Form 1040 — Lines 16a Through 20b ity starting date was after 1997 and the payments are for your life and that of your beneficiary, use your combined ages on the annuity starting date. If you are the beneficiary of an employee who died, see Pub. 575. If there is more than one beneficiary, see Pub. 575 or Pub. 721 to figure each beneficiary’s taxable amount. Rollover to a Roth IRA or a designated Roth account from a designated Roth account. Enter on line 16a the total distribu- Cost Your cost is generally your net investment in the plan as of the annuity starting date. It does not include pre-tax contributions. Your net investment should be shown in box 9b of Form 1099-R for the first year you received payments from the plan. tion before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R. From the total on line 16a, subtract the amount of the qualified rollover. Enter the remaining amount, even if zero, on line 16b. Also, enter “Rollover” next to line 16b. Lump-Sum Distributions If you received a lump-sum distribution from a profit-sharing or retirement plan, your Form 1099-R should have the ‘‘Total distribution’’ box in box 2b checked. You may owe an additional tax if you received an early distribution from a qualified retirement plan and the total amount was not rolled over in a qualified rollover. For details, see the instructions for line 58 on page 45. Enter the total distribution on line 16a and the taxable part on line 16b. For details, see Pub. 575. amount you would otherwise be required to report on line 19 by the amount you repaid. Enter the result on line 19. However, if the result is zero or less, enter -0- on line 19. Also, enter “Repaid” and the amount you repaid on the dotted line next to line 19. If, in 2009, you repaid unemployment compensation that you included in gross income in an earlier year, you can deduct the amount repaid on Schedule A, line 23. But if you repaid more than $3,000, see Repayments in Pub. 525 for details on how to report the repayment. Lines 20a and 20b Social Security Benefits You should receive a Form SSA-1099 showing in box 3 the total social security benefits paid to you. Box 4 will show the amount of any benefits you repaid in 2009. If you received railroad retirement benefits treated as social security, you should receive a Form RRB-1099. Use the worksheet on page 28 to see if any of your benefits are taxable. Exception. Do not use the worksheet on Rollovers Generally, a qualified rollover is a tax-free distribution of cash or other assets from one retirement plan that is contributed to another plan within 60 days of receiving the distribution. However, a qualified rollover to a Roth IRA is generally not a tax-free distribution. Use lines 16a and 16b to report a qualified rollover, including a direct rollover, from one qualified employer’s plan to another or to an IRA or SEP. For more details on rollovers, including distributions under qualified domestic relations orders, see Pub. 575. Rollover to a plan other than a Roth IRA or a designated Roth account. Enter on You may be able to pay less tax on the distribution if you were born before January 2, 1936, or you are the beneficiary of a deceased employee who was born before January 2, 1936. For details, see Form 4972. TIP page 28 if any of the following applies. line 16a the total distribution before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R. From the total on line 16a, subtract any contributions (usually shown in box 5) that were taxable to you when made. From that result, subtract the amount of the qualified rollover. Enter the remaining amount, even if zero, on line 16b. Also, enter ‘‘Rollover’’ next to line 16b. Special rules apply to partial rollovers of property. See Pub. 575. Rollover to a Roth IRA (other than from a designated Roth account). Enter on line Line 19 Unemployment Compensation You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you in 2009. Report on line 19 the part, if any, you received that is more than $2,400. If married filing jointly, also report on line 19 any unemployment compensation received by your spouse that is more than $2,400. If you made contributions to a governmental unemployment compensation program and you are not itemizing deductions, reduce the amount you report on line 19 by those contributions. If you received an overpayment of unemployment compensation in 2009 and you repaid any of it in 2009, reduce the 16a the total distribution before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R. From the total on line 16a, subtract any contributions (usually shown in box 5) that were taxable to you when made. Enter the remaining amount, even if zero, on line 16b. • You made contributions to a traditional IRA for 2009 and you or your spouse were covered by a retirement plan at work or through self-employment. Instead, use the worksheets in Pub. 590 to see if any of your social security benefits are taxable and to figure your IRA deduction. • You repaid any benefits in 2009 and your total repayments (box 4) were more than your total benefits for 2009 (box 3). None of your benefits are taxable for 2009. Also, you may be able to take an itemized deduction or a credit for part of the excess repayments if they were for benefits you included in gross income in an earlier year. For more details, see Pub. 915. • You file Form 2555, 2555-EZ, 4563, or 8815, or you exclude employer-provided adoption benefits or income from sources within Puerto Rico. Instead, use the worksheet in Pub. 915. - 27 - Need more information or forms? See page 96. Form 1040 — Lines 20a and 20b Social Security Benefits Worksheet—Lines 20a and 20b Before you begin: Keep for Your Records Complete Form 1040, lines 21 and 23 through 32, if they apply to you. Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36 on page 35). If you are married filing separately and you lived apart from your spouse for all of 2009, enter “D” to the right of the word “benefits” on line 20a. If you do not, you may get a math error notice from the IRS. Be sure you have read the Exception on page 27 to see if you can use this worksheet instead of a publication to find out if any of your benefits are taxable. 1. Enter the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099. Also, enter this amount on Form 1040, line 20a . . . . . . 1. 2. Enter one-half of line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Enter the total of the amounts from Form 1040, lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Enter the amount, if any, from Form 1040, line 8b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Add lines 2, 3, and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. Enter the total of the amounts from Form 1040, lines 23 through 32, plus any write-in adjustments you entered on the dotted line next to line 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Is the amount on line 6 less than the amount on line 5? No. STOP None of your social security benefits are taxable. Enter -0- on Form 1040, line 20b. Yes. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. If you are: • Married filing jointly, enter $32,000 • Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2009, enter $25,000 .............. • Married filing separately and you lived with your spouse at any time in 2009, skip lines 8 through 15; multiply line 7 by 85% (.85) and enter the result on line 16. Then go to line 17 9. Is the amount on line 8 less than the amount on line 7? No. STOP None of your social security benefits are taxable. Enter -0- on Form 1040, line 20b. If you are married filing separately and you lived apart from your spouse for all of 2009, be sure you entered “D” to the right of the word “benefits” on line 20a. Yes. Subtract line 8 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Enter: $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2009 . . 11. Subtract line 10 from line 9. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. Enter the smaller of line 9 or line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. Enter one-half of line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. Enter the smaller of line 2 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. Multiply line 11 by 85% (.85). If line 11 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. Add lines 14 and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. Multiply line 1 by 85% (.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. Taxable social security benefits. Enter the smaller of line 16 or line 17. Also enter this amount on Form 1040, line 20b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. 4. 5. 6. 7. } 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. TIP If any of your benefits are taxable for 2009 and they include a lump-sum benefit payment that was for an earlier year, you may be able to reduce the taxable amount. See Pub. 915 for details. Need more information or forms? See page 96. - 28 - Form 1040 — Lines 21 and 23 Line 21 Other Income Do not report on this line any income from self-employment or fees received as a notary CAUTION public. Instead, you must use Schedule C, C-EZ, or F, even if you do not have any business expenses. Also, do not report on line 21 any nonemployee compensation shown on Form 1099-MISC. Instead, see the chart on page 11 to find out where to report that income. TIP Attach Form(s) W-2G to Form 1040 if any federal income tax was withheld. ! Taxable income. Use line 21 to report any taxable income not reported elsewhere on your return or other schedules. See the examples below. List the type and amount of income. If necessary, show the required information on an attached statement. For more details, see Miscellaneous Income in Pub. 525. Examples of income to report on line 21 include the following. • Taxable distributions from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). Distributions from these accounts may be taxable if (a) they are more than the qualified higher education expenses of the designated beneficiary in 2009, and (b) they were not included in a qualified rollover. See Pub. 970. Nontaxable distributions from these accounts, including rollovers, do not have to be reported on Form 1040. You may have to pay an additional tax if you received a taxable distribution from a CAUTION Coverdell ESA or a QTP. See the Instructions for Form 5329. ! savings account (HSA) or an Archer MSA. Distributions from these accounts may be taxable if (a) they are more than the unreimbursed qualified medical expenses of the account beneficiary or account holder in 2009, and (b) they were not included in a qualified rollover. See Pub. 969. • Taxable distributions from a health You may have to pay an additional tax if you received a taxable distribution from an HSA CAUTION or an Archer MSA. See the Instructions for Form 8889 for HSAs or the Instructions for Form 8853 for Archer MSAs. • Amounts deemed to be income from an HSA because you did not remain an eligible individual during the testing period. See Form 8889, Part III. • Prizes and awards. • Gambling winnings, including lotteries, raffles, a lump-sum payment from the sale of a right to receive future lottery payments, etc. For details on gambling losses, see the instructions for Schedule A, line 28, on page A-11. ! • Jury duty pay. Also, see the instructions for line 36 on page 35. • Alaska Permanent Fund dividends. • Alternative trade adjustment assistance (ATAA) payments. These payments should be shown in box 5 of Form 1099-G. • Reimbursements or other amounts received for items deducted in an earlier year, such as medical expenses, real estate taxes, general sales taxes, or home mortgage interest. See Recoveries in Pub. 525 for details on how to figure the amount to report. • Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property. Also, see the instructions for line 36 on page 35. • Income from an activity not engaged in for profit. See Pub. 535. • Loss on certain corrective distributions of excess deferrals. See Retirement Plan Contributions in Pub. 525. • Dividends on insurance policies if they exceed the total of all net premiums you paid for the contract. • Recapture of a charitable contribution deduction relating to the contribution of a fractional interest in tangible personal property. See Fractional Interest In Tangible Personal Property in Pub. 526. Interest and an additional 10% tax apply to the amount of the recapture. See the instructions for line 60 on page 46. • Recapture of a charitable contribution deduction if the charitable organization disposes of the donated property within 3 years of the contribution. See Recapture if no exempt use in Pub. 526. • Canceled debts. These amounts may be shown in box 2 of Form 1099-C. However, part or all of your income from the cancellation of debt may be nontaxable. See Pub. 4681 or go to www.irs.gov and enter “canceled debt” or “foreclosure” in the search box. Nontaxable income. Do not report any nontaxable income on line 21. Examples of nontaxable income include the following. • Child support. • Economic recovery payments of $250 made to certain recipients of social security benefits, supplemental security income, railroad retirement benefits, or certain veterans disability compensation or pension benefits. • Vouchers or payments made for such vouchers of $3,500 or $4,500 you received under the CARS “cash for clunkers” program to buy or lease a new fuel-efficient automobile. • Any Pay-for-Performance Success Payments that reduce the principal balance of your home mortgage under the Home Affordable Modification Program. • Life insurance proceeds received because of someone’s death (other than from certain employer-owned life insurance contracts). • Gifts and bequests. However, if you received a gift or bequest from a foreign person of more than $14,139, you may have to report information about it on Form 3520, Part IV. See the Instructions for Form 3520. Adjusted Gross Income Line 23 Educator Expenses If you were an eligible educator in 2009, you can deduct on line 23 up to $250 of qualified expenses you paid in 2009. If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. However, neither spouse can deduct more than $250 of his or her qualified expenses on line 23. You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A, line 21. An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year. Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your profession as an educator. An expense does not have to be required to be considered necessary. Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. You must reduce your qualified expenses by the following amounts. • Excludable U.S. series EE and I savings bond interest from Form 8815. • Nontaxable qualified tuition program earnings or distributions. • Any nontaxable distribution of Coverdell education savings account earnings. • Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2. - 29 - Need more information or forms? See page 96. Form 1040 — Lines 23 Through 29 For more details, use TeleTax topic 458 (see page 94) or see Pub. 529. Line 26 Moving Expenses If you moved in connection with your job or business or started a new job, you may be able to take this deduction. But your new workplace must be at least 50 miles farther from your old home than your old home was from your old workplace. If you had no former workplace, your new workplace must be at least 50 miles from your old home. Use TeleTax topic 455 (see page 94) or see Form 3903. Line 29 Self-Employed Health Insurance Deduction You may be able to deduct the amount you paid for health insurance for yourself, your spouse, and your dependents if any of the following applies. • You were self-employed and had a net profit for the year. • You used one of the optional methods to figure your net earnings from self-employment on Schedule SE. • You received wages in 2009 from an S corporation in which you were a more-than-2% shareholder. Health insurance premiums paid or reimbursed by the S corporation may be shown in box 14 of Form W-2. The insurance plan must be established under your business. If you are a more-than-2% shareholder in an S corporation, the plan must be established by the S corporation. A plan is established by the S corporation if (a) the S corporation makes the premium payments for the policy in 2009 or (b) you make the premium payments and furnish proof of payment to the S corporation and then the S corporation reimburses you for the premium payments in 2009. You can deduct the premiums only if the S corporation reports the premiums paid or reimbursed as wages in box 1 of your Form W-2 in 2009 and you also report the premium payments or reimbursements as wages on Form 1040, line 7. Line 24 Certain Business Expenses of Reservists, Performing Artists, and Fee-Basis Government Officials Include the following deductions on line 24. • Certain business expenses of National Guard and reserve members who traveled more than 100 miles from home to perform services as a National Guard or reserve member. • Performing-arts-related expenses as a qualified performing artist. • Business expenses of fee-basis state or local government officials. For more details, see Form 2106 or 2106-EZ. Line 27 One-Half of Self-Employment Tax If you were self-employed and owe self-employment tax, fill in Schedule SE to figure the amount of your deduction. Line 25 Health Savings Account (HSA) Deduction You may be able to take this deduction if contributions (other than employer contributions, rollovers, and qualified HSA funding distributions from an IRA) were made to your HSA for 2009. See Form 8889. Line 28 Self-Employed SEP, SIMPLE, and Qualified Plans If you were self-employed or a partner, you may be able to take this deduction. See Pub. 560 or, if you were a minister, Pub. 517. Self-Employed Health Insurance Deduction Worksheet—Line 29 Before you begin: Keep for Your Records If, during 2009, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation pension recipient, see the Note on page 31. Be sure you have read the Exception on page 31 to see if you can use this worksheet instead of Pub. 535 to figure your deduction. 1. Enter the total amount paid in 2009 for health insurance coverage established under your business (or the S corporation in which you were a more-than-2% shareholder) for 2009 for you, your spouse, and your dependents. But do not include amounts for any month you were eligible to participate in an employer-sponsored health plan or amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer . . . . . . . . . . . . . . . . . . . . . . . 2. Enter your net profit* and any other earned income** from the business under which the insurance plan is established, minus any deductions on Form 1040, lines 27 and 28 . . . . . . . . . . . . . . . . . . . . 3. Self-employed health insurance deduction. Enter the smaller of line 1 or line 2 here and on Form 1040, line 29. Do not include this amount in figuring any medical expense deduction on Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. 3. *If you used either optional method to figure your net earnings from self-employment, do not enter your net profit. Instead, enter the amount from Schedule SE, Section B, line 4b. **Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. However, it does not include capital gain income. If you were a more-than-2% shareholder in the S corporation under which the insurance plan is established, earned income is your Medicare wages (box 5 of Form W-2) from that corporation. Need more information or forms? See page 96. - 30 - Form 1040 — Lines 29 Through 32 But if you were also eligible to participate in any subsidized health plan maintained by your or your spouse’s employer for any month or part of a month in 2009, amounts paid for health insurance coverage for that month cannot be used to figure the deduction. For example, if you were eligible to participate in a subsidized health plan maintained by your spouse’s employer from September 30 through December 31, you cannot use amounts paid for health insurance coverage for September through December to figure your deduction. Medicare premiums cannot be used to figure the deduction. Also, amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer cannot be used to figure the deduction. For more details, see Pub. 535. Note. If, during 2009, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation pension recipient, you must complete Form 8885 before completing the worksheet on page 30. When figuring the amount to enter on line 1 of the worksheet on page 30, do not include: Lines 31a and 31b Alimony Paid If you made payments to or for your spouse or former spouse under a divorce or separation instrument, you may be able to take this deduction. Use TeleTax topic 452 (see page 94) or see Pub. 504. Line 32 IRA Deduction If you made any nondeductible contributions to a traditional individual retirement arrangement (IRA) for 2009, you must report them on Form 8606. TIP • Any amounts you included on Form 8885, line 4, • Any qualified health insurance premiums you paid to “U.S. Treasury-HCTC,” or • Any health coverage tax credit advance payments shown in box 1 of Form 1099-H. If you qualify to take the deduction, use the worksheet on page 30 to figure the amount you can deduct. Exception. Use Pub. 535 instead of the If you made contributions to a traditional IRA for 2009, you may be able to take an IRA deduction. But you, or your spouse if filing a joint return, must have had earned income to do so. For IRA purposes, earned income includes alimony and separate maintenance payments reported on line 11. If you were a member of the U.S. Armed Forces, earned income includes any nontaxable combat pay you received. If you were self-employed, earned income is generally your net earnings from self-employment if your personal services were a material income-producing factor. For more details, see Pub. 590. A statement should be sent to you by June 1, 2010, that shows all contributions to your traditional IRA for 2009. Use the worksheet on pages 32 and 33 to figure the amount, if any, of your IRA deduction. But read the following list before you fill in the worksheet. 1. If you were age 701⁄2 or older at the end of 2009, you cannot deduct any contributions made to your traditional IRA for 2009 or treat them as nondeductible contributions. 2. You cannot deduct contributions to a Roth IRA. But you may be able to take the retirement savings contributions credit (saver’s credit). See the instructions for line 50 on page 40. worksheet on page 30 to figure your deduction if any of the following applies. • You had more than one source of income subject to self-employment tax. • You file Form 2555 or 2555-EZ. • You are using amounts paid for qualified long-term care insurance to figure the deduction. If you are filing a joint return and you or your spouse made contributions to both a tradiCAUTION tional IRA and a Roth IRA for 2009, do not use the worksheet on pages 32 and 33. Instead, see Pub. 590 to figure the amount, if any, of your IRA deduction. ! 4. If you made contributions to your IRA in 2009 that you deducted for 2008, do not include them in the worksheet. 5. If you received income from a nonqualified deferred compensation plan or nongovernmental section 457 plan that is included in box 1 of your Form W-2, or in box 7 of Form 1099-MISC, do not include that income on line 8 of the worksheet. The income should be shown in (a) box 11 of your Form W-2, (b) box 12 of your Form W-2 with code Z, or (c) box 15b of Form 1099-MISC. If it is not, contact your employer or the payer for the amount of the income. 6. You must file a joint return to deduct contributions to your spouse’s IRA. Enter the total IRA deduction for you and your spouse on line 32. 7. Do not include qualified rollover contributions in figuring your deduction. Instead, see the instructions for lines 15a and 15b that begin on page 24. 8. Do not include trustees’ fees that were billed separately and paid by you for your IRA. These fees can be deducted only as an itemized deduction on Schedule A. 9. Do not include any repayments of qualified reservist distributions. You cannot deduct them. For information on how to report these repayments, see Qualified reservist repayments in Pub. 590. 10. If the total of your IRA deduction on line 32 plus any nondeductible contribution to your traditional IRAs shown on Form 8606 is less than your total traditional IRA contributions for 2009, see Pub. 590 for special rules. 11. You may be able to deduct up to an additional $3,000 if all the following conditions are met. a. You must have been a participant in a 401(k) plan under which the employer matched at least 50% of your contributions to the plan with stock of the company. b. You must have been a participant in the 401(k) plan 6 months before the employer filed for bankruptcy. c. The employer (or a controlling corporation) must have been a debtor in a bankruptcy case in an earlier year. d. The employer (or any other person) must have been subject to indictment or conviction based on business transactions related to the bankruptcy. If this applies to you, do not use the worksheet on pages 32 and 33. Instead, use the worksheet in Pub. 590. Line 30 Penalty on Early Withdrawal of Savings The Form 1099-INT or Form 1099-OID you received will show the amount of any penalty you were charged. 3. You cannot deduct elective deferrals to a 401(k) plan, 403(b) plan, section 457 plan, SIMPLE plan, or the federal Thrift Savings Plan. These amounts are not included as income in box 1 of your Form W-2. But you may be able to take the retirement savings contributions credit. See the instructions for line 50 on page 40. By April 1 of the year after the year in which you turn age 701⁄2, you must start taking minimum required distributions from your traditional IRA. If you do not, you may have to pay a 50% additional tax on the amount that should have been distributed. For details, including how to figure the minimum required distribution, see Pub. 590. TIP - 31 - Need more information or forms? See page 96. Form 1040 — Line 32 Were You Covered by a Retirement Plan? If you were covered by a retirement plan (qualified pension, profit-sharing (including 401(k)), annuity, SEP, SIMPLE, etc.) at work or through self-employment, your IRA deduction may be reduced or eliminated. But you can still make contributions to an IRA even if you cannot deduct them. In any case, the income earned on your IRA contributions is not taxed until it is paid to you. The “Retirement plan” box in box 13 of your Form W-2 should be checked if you were covered by a plan at work even if you were not vested in the plan. You are also covered by a plan if you were self-em- ployed and had a SEP, SIMPLE, or qualified retirement plan. If you were covered by a retirement plan and you file Form 2555, 2555-EZ, or 8815, or you exclude employer-provided adoption benefits, see Pub. 590 to figure the amount, if any, of your IRA deduction. Married persons filing separately. If you were not covered by a retirement plan but IRA Deduction Worksheet—Line 32 Keep for Your Records CAUTION ! If you were age 701⁄2 or older at the end of 2009, you cannot deduct any contributions made to your traditional IRA or treat them as nondeductible contributions. Do not complete this worksheet for anyone age 701⁄2 or older at the end of 2009. If you are married filing jointly and only one spouse was under age 701⁄2 at the end of 2009, complete this worksheet only for that spouse. Be sure you have read the list on page 31. You may not be eligible to use this worksheet. Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36 on page 35). If you are married filing separately and you lived apart from your spouse for all of 2009, enter “D” on the dotted line next to Form 1040, line 32. If you do not, you may get a math error notice from the IRS. Your IRA Spouse’s IRA 1b. Yes No 1a. Before you begin: 1a. b. 2. 3. 4. 5. 6. Yes No If married filing jointly, was your spouse covered by a retirement plan? . . . . . . . . . . . . . . . . . . . . . . . . . . . Next. If you checked “No” on line 1a (and “No” on line 1b if married filing jointly), skip lines 2 through 6, enter the applicable amount below on line 7a (and line 7b if applicable), and go to line 8. • $5,000, if under age 50 at the end of 2009. • $6,000, if age 50 or older but under age 701⁄2 at the end of 2009. Otherwise, go to line 2. Enter the amount shown below that applies to you. • Single, head of household, or married filing separately and you lived apart from your spouse for all of 2009, enter $65,000 • Qualifying widow(er), enter $109,000 2a. • Married filing jointly, enter $109,000 in both columns. But if you checked “No” on either line 1a or 1b, enter $176,000 for the person who was not covered by a plan • Married filing separately and you lived with your spouse at any time in 2009, enter $10,000 Enter the amount from Form 1040, line 22 . . . . . . . . . . . 3. Enter the total of the amounts from Form 1040, lines 23 through 31a, plus any write-in adjustments you entered on the dotted line next to line 36 . . . . . . . . . . . . . . . . . . . . 4. Subtract line 4 from line 3. If married filing jointly, enter the result in both columns 5a. Is the amount on line 5 less than the amount on line 2? None of your IRA contributions are deductible. For details on No. STOP nondeductible IRA contributions, see Form 8606. Subtract line 5 from line 2 in each column. Follow the instruction below Yes. that applies to you. • If single, head of household, or married filing separately, and the result is $10,000 or more, enter the applicable amount below on line 7 for that column and go to line 8. i. $5,000, if under age 50 at the end of 2009. ii. $6,000, if age 50 or older but under age 701⁄2 at the end of 2009. Otherwise, go to line 7. 6a. • If married filing jointly or qualifying widow(er), and the result is $20,000 or more ($10,000 or more in the column for the IRA of a person who was not covered by a retirement plan), enter the applicable amount below on line 7 for that column and go to line 8. i. $5,000, if under age 50 at the end of 2009. ii. $6,000 if age 50 or older but under age 701⁄2 at the end of 2009. Otherwise, go to line 7. Were you covered by a retirement plan (see page 31)? . . . . . . . . . . . . . . . . . . . . . } 2b. 5b. } 6b. Need more information or forms? See page 96. - 32 - Form 1040 — Line 32 IRA Deduction Worksheet— Continued from page 32 Your IRA Multiply lines 6a and 6b by the percentage below that applies to you. If the result is not a multiple of $10, increase it to the next multiple of $10 (for example, increase $490.30 to $500). If the result is $200 or more, enter the result. But if it is less than $200, enter $200. • Single, head of household, or married filing separately, multiply by 50% (.50)(or by 60% (.60) in the column for the IRA of a person who is age 50 or older at the end of 2009) • Married filing jointly or qualifying widow(er), multiply by 25% (.25) (or by 30% (.30) in the column for the IRA of a person who is age 50 or older at the end of 2009). But if you checked “No” on either line 1a or 1b, then in the column for the IRA of the person who was not covered by a retirement plan, multiply by 50% (.50) (or by 60% (.60) if age 50 or older at the end of 2009) 8. Enter the total of your (and your spouse’s if filing jointly): • Wages, salaries, tips, etc. Generally, this is the amount reported in box 1 of Form W-2. See page 31 for exceptions 8. • Alimony and separate maintenance payments reported on Form 1040, line 11 • Nontaxable combat pay. This amount should be reported in box 12 of Form W-2 with code Q 9. Enter the earned income you (and your spouse if filing jointly) received as a self-employed individual or a partner. Generally, this is your (and your spouse’s if filing jointly) net earnings from self-employment if your personal services were a material income-producing factor, minus any deductions on Form 1040, lines 27 and 28. If zero or less, enter -0-. For more details, see Pub. 590 . . . . . . . . . . . . . . . . . 9. 10. Add lines 8 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 7. Spouse’s IRA } 7a. 7b. } 11. 12. If married filing jointly and line 10 is less than $10,000 ($11,000 if one spouse is age 50 or older at the end of 2009; $12,000 if both spouses are age 50 or older at the end of 2009), stop here and see CAUTION Pub. 590 to figure your IRA deduction. Enter traditional IRA contributions made, or that will be made by April 15, 2010, for 2009 to your IRA on line 11a and to your spouse’s IRA on line 11b . . . . . . . 11a. On line 12a, enter the smallest of line 7a, 10, or 11a. On line 12b, enter the smallest of line 7b, 10, or 11b. This is the most you can deduct. Add the amounts on lines 12a and 12b and enter the total on Form 1040, line 32. Or, if you want, you can deduct a smaller amount and treat the rest as a nondeductible contribution (see Form 8606) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12a. ! 11b. 12b. your spouse was, you are considered covered by a plan unless you lived apart from your spouse for all of 2009. TIP 40. You may be able to take the retirement savings contributions credit. See the instructions for line 50 that begin on page - 33 - Need more information or forms? See page 96. Form 1040 — Line 33 Line 33 Student Loan Interest Deduction You can take this deduction only if all of the following apply. • You paid interest in 2009 on a qualified student loan (see below). • Your filing status is any status except married filing separately. • Your modified adjusted gross income (AGI) is less than: $75,000 if single, head of household, or qualifying widow(er); $150,000 if married filing jointly. Use lines 2 through 4 of the worksheet below to figure your modified AGI. • You, or your spouse if filing jointly, are not claimed as a dependent on someone’s (such as your parent’s) 2009 tax return. Use the worksheet below to figure your student loan interest deduction. Exception. Use Pub. 970 instead of the 1. Yourself or your spouse. 2. Any person who was your dependent when the loan was taken out. 3. Any person you could have claimed as a dependent for the year the loan was taken out except that: a. The person filed a joint return, b. The person had gross income that was equal to or more than the exemption amount for that year ($3,650 for 2009), or c. You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s return. The person for whom the expenses were paid must have been an eligible student (see this page). However, a loan is not a qualified student loan if (a) any of the proceeds were used for other purposes, or (b) the loan was from either a related person or a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan. To find out who is a related person, see Pub. 970. Qualifie d h igher e d ucation expenses. most colleges, universities, and certain vocational schools. You must reduce the expenses by the following benefits. • Employer-provided educational assistance benefits that are not included in box 1 of Form(s) W-2. • Excludable U.S. series EE and I savings bond interest from Form 8815. • Any nontaxable distribution of qualified tuition program earnings. • Any nontaxable distribution of Coverdell education savings account earnings. • Any scholarship, educational assistance allowance, or other payment (but not gifts, inheritances, etc.) excluded from income. For more details on these expenses, see Pub. 970. Eligible student. An eligible student is a person who: • Was enrolled in a degree, certificate, or other program (including a program of study abroad that was approved for credit by the institution at which the student was enrolled) leading to a recognized educational credential at an eligible educational institution, and • Carried at least half the normal full-time workload for the course of study he or she was pursuing. worksheet below to figure your student loan interest deduction if you file Form 2555, 2555-EZ, or 4563, or you exclude income from sources within Puerto Rico. Qualified student loan. A qualified student loan is any loan you took out to pay the qualified higher education expenses for any of the following individuals. Qualified higher education expenses generally include tuition, fees, room and board, and related expenses such as books and supplies. The expenses must be for education in a degree, certificate, or similar program at an eligible educational institution. An eligible educational institution includes Student Loan Interest Deduction Worksheet—Line 33 Before you begin: Keep for Your Records Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36 on page 35). Be sure you have read the Exception above to see if you can use this worksheet instead of Pub. 970 to figure your deduction. 1. 1. Enter the total interest you paid in 2009 on qualified student loans (see above). Do not enter more than $2,500 2. Enter the amount from Form 1040, line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Enter the total of the amounts from Form 1040, lines 23 through 32, plus any write-in adjustments you entered on the dotted line next to line 36 . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Subtract line 3 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Enter the amount shown below for your filing status. • Single, head of household, or qualifying widow(er) — $60,000 . . . . . . . . . . . 5. • Married filing jointly — $120,000 6. Is the amount on line 4 more than the amount on line 5? No. Skip lines 6 and 7, enter -0- on line 8, and go to line 9. Yes. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7. Divide line 6 by $15,000 ($30,000 if married filing jointly). Enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. Multiply line 1 by line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. Student loan interest deduction. Subtract line 8 from line 1. Enter the result here and on Form 1040, line 33. Do not include this amount in figuring any other deduction on your return (such as on Schedule A, C, E, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } 7. 8. . 9. Need more information or forms? See page 96. - 34 - Form 1040 — Lines 34 Through 40a Line 34 Tuition and Fees Deduction If you paid qualified tuition and fees for yourself, your spouse, or your dependent(s), you may be able to take this deduction. See Form 8917. You may be able to take a credit for your educational expenses instead of a deduction. See the instructions for line 49 on page 40 for details. TIP Line 35 Domestic Production Activities Deduction You may be able to deduct up to 6% of your qualified production activities income from the following activities. 1. Construction of real property performed in the United States. 2. Engineering or architectural services performed in the United States for construction of real property in the United States. 3. Any lease, rental, license, sale, exchange, or other disposition of: a. Tangible personal property, computer software, and sound recordings that you manufactured, produced, grew, or extracted in whole or in significant part within the United States, b. Any qualified film you produced, or c. Electricity, natural gas, or potable water you produced in the United States. The deduction does not apply to income derived from: • The sale of food and beverages you prepared at a retail establishment; • Property you leased, licensed, or rented for use by any related person; • The transmission or distribution of electricity, natural gas, or potable water; or • The lease, rental, license, sale, exchange, or other disposition of land. In certain cases, the references above to the United States include Puerto Rico. For details, see Form 8903 and its instructions. • Archer MSA deduction (see Form 8853). Identify as “MSA.” • Jury duty pay if you gave the pay to your employer because your employer paid your salary while you served on the jury. Identify as “Jury Pay.” • Deductible expenses related to income reported on line 21 from the rental of personal property engaged in for profit. Identify as “PPR.” • Reforestation amortization and expenses (see Pub. 535). Identify as “RFST.” • Repayment of supplemental unemployment benefits under the Trade Act of 1974 (see Pub. 525). Identify as “Sub-Pay TRA.” • Contributions to section 501(c)(18)(D) pension plans (see Pub. 525). Identify as “501(c)(18)(D).” • Contributions by certain chaplains to section 403(b) plans (see Pub. 517). Identify as “403(b).” • Attorney fees and court costs for actions settled or decided after October 22, 2004, involving certain unlawful discrimination claims, but only to the extent of gross income from such actions (see Pub. 525). Identify as “UDC.” • Attorney fees and court costs paid by you in connection with an award from the IRS for information you provided after December 19, 2006, that substantially contributed to the detection of tax law violations, up to the amount of the award includible in your gross income. Identify as “WBF.” • You cannot see better than 20/200 in your better eye with glasses or contact lenses, or • Your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor or registered optometrist to this effect instead. You must keep the statement for your records. Line 39b If your filing status is married filing separately (box 3 is checked), and your spouse itemizes deductions on his or her return, check the box on line 39b. Also check that box if you were a dual-status alien. But if you were a dual-status alien and you file a joint return with your spouse who was a U.S. citizen or resident alien at the end of 2009 and you and your spouse agree to be taxed on your combined worldwide income, do not check the box. Line 40a Itemized Deductions or Standard Deduction In most cases, your federal income tax will be less if you take the larger of your itemized deductions or standard deduction. Line 37 If line 37 is less than zero, you may have a net operating loss that you can carry to another tax year. See the Instructions for Form 1045 for details. Itemized Deductions To figure your itemized deductions, fill in Schedule A. Standard Deduction Most people can find their standard deduction by looking at the amounts listed under “All others” to the left of Form 1040, line 40a. But use the worksheet on page 36 to figure your standard deduction if: • You, or your spouse if filing jointly, can be claimed as a dependent on someone’s 2009 return, or • You checked any box on line 39a. Exception. Use Schedule L, instead of the Tax and Credits Line 39a If you were born before January 2, 1945, or were blind at the end of 2009, check the appropriate box(es) on line 39a. If you were married and checked the box on Form 1040, line 6b, and your spouse was born before January 2, 1945, or was blind at the end of 2009, also check the appropriate box(es) for your spouse. Be sure to enter the total number of boxes checked. Line 36 Include in the total on line 36 any of the following write-in adjustments. To find out if you can take the deduction, see the form or publication indicated. On the dotted line next to line 36, enter the amount of your deduction and identify it as indicated. Blindness If you were partially blind as of December 31, 2009, you must get a statement certified by your eye doctor or registered optometrist that: worksheet on page 36, to figure your standard deduction if: • You paid state or local real estate taxes in 2009, • You paid state or local sales or excise taxes (or certain other taxes or fees in a state without a sales tax) on the purchase of a new motor vehicle after February 16, 2009, or • You have a net disaster loss on Form 4684, line 18. If you use Schedule L to figure your standard deduction, be sure to check the box on - 35 - Need more information or forms? See page 96. Form 1040 — Line 40a line 40b and attach Schedule L to your return. CAUTION ! If you checked the box on line 39b, your standard deduction is zero, even if you were born before January 2, 1945, were blind, paid real estate taxes or sales or excise taxes on the purchase of a vehicle, or had a net disaster loss. Standard Deduction Worksheet—Line 40a CAUTION Keep for Your Records ! Do not complete this worksheet if you checked the box on line 39b; your standard deduction is zero. Also, do not complete this worksheet if you must use Schedule L to figure your standard deduction (see Exception on page 35). Enter the amount shown below for your filing status. • Single or married filing separately —$5,700 • Married filing jointly or Qualifying widow(er) —$11,400 . . . . . . . . . . . . . . . 1. • Head of household —$8,350 2. Can you (or your spouse if filing jointly) be claimed as a dependent on someone else’s return? No. Enter the amount from line 1 on line 4, skip line 3, and go to line 5. Yes. Go to line 3. 3. Is your earned income* more than $650? Yes. Add $300 to your earned income. Enter the total . . . . . . . . . . . . . . . . 3. No. Enter $950 4. Enter the smaller of line 1 or line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. If born before January 2, 1945, or blind, multiply the number on Form 1040, line 39a, by $1,100 ($1,400 if single or head of household). Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Add lines 4 and 5. Enter the total here and on Form 1040, line 40a . . . . . . . . . . . . . . . . . . . . . . . . . . 6. *Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any amount received as a scholarship that you must include in your income. Generally, your earned income is the total of the amount(s) you reported on Form 1040, lines 7, 12, and 18, minus the amount, if any, on line 27. 1. } } Need more information or forms? See page 96. - 36 - Form 1040 — Lines 42 and 44 Line 42 Exemptions Taxpayers housing Midwestern displaced individuals. You may be able to claim an You must complete and attach Form 8914 to claim this additional exemption amount. Adjusted gross income (line 38) over $125,100. Use the Deduction for Exemp- tax-free educational assistance or a refund of qualified expenses was received in 2009 for the student. See Form 8863 for more details. Enter the amount and “ECR” in the space next to line 44. Do you want the IRS to figure the tax on your taxable income for you? Yes. See Pub. 967 for details, including who is eligible and what to do. If you have paid too much, we will send you a refund. If you did not pay enough, we will send you a bill. ❏ No. Use one of the following methods to figure your tax. Tax Table or Tax Computation Worksheet. If your taxable income is less than ❏ additional exemption amount of $500 per person (up to $2,000) if you provided housing to a person who was displaced from his or her main home because of the storms, tornadoes, or flooding in a Midwestern disaster area and all of the following apply. • The person displaced lived in your main home for a period of at least 60 consecutive days ending in 2009. • You did not receive any rent or other amount from any source for providing the housing. • The main home of the person displaced was in a Midwestern disaster area on the date the storms, tornadoes, or flooding occurred. • The person displaced was not your spouse or dependent. • You did not claim an additional exemption amount for that person in 2008. • You did not claim the maximum additional exemption amount of $2,000 ($1,000 if married filing separately) in 2008. tions Worksheet below to figure your deduction for exemptions unless you are filing Form 8914. Line 44 Tax Include in the total on line 44 all of the following taxes that apply. • Tax on your taxable income. Figure the tax using one of the methods described on this page and page 38. • Tax from Form 8814 (relating to the election to report child’s interest or dividends). Check the appropriate box. • Tax from Form 4972 (relating to lump-sum distributions). Check the appropriate box. • Recapture of an education credit. You may owe this tax if you claimed an education credit in an earlier year, and either $100,000, you must use the Tax Table that begins on page 77 to figure your tax. Be sure you use the correct column. If your taxable income is $100,000 or more, use the Tax Computation Worksheet on page 89. However, do not use the Tax Table or Tax Computation Worksheet to figure your tax if any of the following applies. Deduction for Exemptions Worksheet—Line 42 1. No. Yes. 2. 3. 4. Keep for Your Records Is the amount on Form 1040, line 38, more than the amount shown on line 4 below for your filing status? STOP Multiply $3,650 by the total number of exemptions claimed on Form 1040, line 6d, and enter the result on Form 1040, line 42. Continue 2. Multiply $3,650 by the total number of exemptions claimed on Form 1040, line 6d . . . . . . . . . . . . . . . . . . . . Enter the amount from Form 1040, line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Enter the amount shown below for your filing status. • Single — $166,800 • Married filing jointly or qualifying widow(er) — $250,200 • Married filing separately — $125,100 • Head of household — $208,500 Is line 5 more than $122,500 ($61,250 if married filing separately)? Yes. Multiply $2,433 by the total number of exemptions claimed on Form 1040, line 6d. Enter the result here and on Form 1040, line 42. Do not complete the rest of this worksheet. No. Divide line 5 by $2,500 ($1,250 if married filing separately). If the result is not a whole number, increase it to the next higher whole number (for example, increase 0.0004 to 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. } ...... 4. 5. 6. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 7. 8. 9. 10. Multiply line 6 by 2% (.02) and enter the result as a decimal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Multiply line 2 by line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. Divide line 8 by 3.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. Deduction for exemptions. Subtract line 9 from line 2. Enter the result here and on Form 1040, line 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. . - 37 - Need more information or forms? See page 96. Form 1040 — Line 44 Form 8615. Form 8615 generally must be used to figure the tax for any child who had more than $1,900 of investment income, such as taxable interest, ordinary dividends, or capital gains (including capital gain distributions) and who either: 1. Was under age 18 at the end of 2009, 2. Was age 18 at the end of 2009 and did not have earned income that was more than half of the child’s support, or 3. Was a full-time student over age 18 and under age 24 at the end of 2009 and did not have earned income that was more than half of the child’s support. But if the child files a joint return for 2009 or if neither of the child’s parents was alive at the end of 2009, do not use Form 8615 to figure the child’s tax. A child born on January 1, 1992, is considered to be age 18 at the end of 2009; a child born on January 1, 1991, is considered to be age 19 at the end of 2009; a child born on January 1, 1986, is considered to be age 24 at the end of 2009. Schedule D Tax Worksheet. If you have to • You are filing Schedule D and Schedule D, lines 15 and 16, are both more than zero. But if you are filing Form 2555 or 2555-EZ, you must use the Foreign Earned Income Tax Worksheet below instead. Schedule J. If you had income from farm- file Schedule D and Schedule D, line 18 or 19, is more than zero, use the Schedule D Tax Worksheet on page D-10 of the Instructions for Schedule D to figure the amount to enter on Form 1040, line 44. But if you are filing Form 2555 or 2555-EZ, you must use the Foreign Earned Income Tax Worksheet below instead. Qualified Dividends and Capital Gain Tax Worksheet. If you do not have to use the Schedule D Tax Worksheet (see above), use the worksheet on page 39 to figure the amount to enter on Form 1040, line 44, if any of the following applies. • You reported qualified dividends on Form 1040, line 9b. • You do not have to file Schedule D and you reported capital gain distributions on Form 1040, line 13. ing or fishing (including certain amounts received in connection with the Exxon Valdez litigation), your tax may be less if you choose to figure it using income averaging on Schedule J. Foreign Earned Income Tax Worksheet. If you claimed the foreign earned income exclusion, housing exclusion, or housing deduction on Form 2555 or 2555-EZ, you must figure your tax using the worksheet below. Foreign Earned Income Tax Worksheet—Line 44 Keep for Your Records CAUTION ! If Form 1040, line 43, is zero, do not complete this worksheet. 1. 2. 3. 1. Enter the amount from Form 1040, line 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Enter the amount from your (and your spouse’s, if filing jointly) Form 2555, lines 45 and 50, or Form 2555-EZ, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Tax on the amount on line 3. Use the Tax Table, Tax Computation Worksheet, Qualified Dividends and Capital Gain Tax Worksheet*, Schedule D Tax Worksheet*, or Form 8615, whichever applies. See the instructions for line 44 that begin on page 37 to see which tax computation method applies. (Do not use a second Foreign Earned Income Tax Worksheet to figure the tax on this line) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Tax on the amount on line 2. Use the Tax Table or Tax Computation Worksheet, whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on Form 1040, line 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. 6. *Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet or Schedule D Tax Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Next, you must determine if you have a capital gain excess. To find out if you have a capital gain excess, subtract Form 1040, line 43, from line 6 of your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess. If you do not have a capital gain excess, complete the rest of either of those worksheets according to the worksheet’s instructions. Then complete lines 5 and 6 above. If you have a capital gain excess, complete a second Qualified Dividends and Capital Gain Tax Worksheet or Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5 and 6 above. These modifications are to be made only for purposes of filling out the Foreign Earned Income Tax Worksheet above. 1. Reduce (but not below zero) the amount you would otherwise enter on line 3 of your Qualified Dividends and Capital Gain Tax Worksheet or line 9 of your Schedule D Tax Worksheet by your capital gain excess. 2. Reduce (but not below zero) the amount you would otherwise enter on line 2 of your Qualified Dividends and Capital Gain Tax Worksheet or line 6 of your Schedule D Tax Worksheet by any of your capital gain excess not used in (1) above. 3. Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess. 4. Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet on page D-9 of the Instructions for Schedule D (Form 1040). Need more information or forms? See page 96. - 38 - Form 1040 — Line 44 Qualified Dividends and Capital Gain Tax Worksheet—Line 44 Before you begin: Keep for Your Records See the instructions for line 44 that begin on page 37 to see if you can use this worksheet to figure your tax. If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on line 13 of Form 1040. 1. Enter the amount from Form 1040, line 43. However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the worksheet on page 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. Enter the amount from Form 1040, line 9b* . . . . . . . . . 2. 3. Are you filing Schedule D?* Yes. Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is a loss, enter -03. No. Enter the amount from Form 1040, line 13 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. If you are claiming investment interest expense on Form 4952, enter the amount from line 4g of that form. Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . 6. 7. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . 7. 8. Enter the smaller of: • The amount on line 1, or • $33,950 if single or married filing separately, . . . . . . . . . . . 8. $67,900 if married filing jointly or qualifying widow(er), $45,500 if head of household. 9. Is the amount on line 7 equal to or more than the amount on line 8? Yes. Skip lines 9 and 10; go to line 11 and check the ‘‘No’’ box. No. Enter the amount from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 10. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 11. Are the amounts on lines 6 and 10 the same? Yes. Skip lines 11 through 14; go to line 15. No. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . 11. 12. Enter the amount from line 10 (if line 10 is blank, enter -0-) . . . . . . . . . . . . . . 12. 13. Subtract line 12 from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. 14. Multiply line 13 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. Figure the tax on the amount on line 7. Use the Tax Table or Tax Computation Worksheet, whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. Add lines 14 and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. Figure the tax on the amount on line 1. Use the Tax Table or Tax Computation Worksheet, whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. Tax on all taxable income. Enter the smaller of line 16 or line 17. Also include this amount on Form 1040, line 44. If you are filing Form 2555 or 2555-EZ, do not enter this amount on Form 1040, line 44. Instead, enter it on line 4 of the worksheet on page 38 . . . . . . . . . . . . . . . . . . . . . . } } 14. 15. 16. 17. 18. *If you are filing Form 2555 or 2555-EZ, see the footnote in the worksheet on page 38 before completing this line. - 39 - Need more information or forms? See page 96. Form 1040 — Lines 45 Through 50 Line 45 Alternative Minimum Tax Use the worksheet on page 41 to see if you should fill in Form 6251. ally, you must complete and attach Form 1116 to do so. Exception. You do not have to complete Form 1116 to take this credit if all five of the following apply. TIP website. An electronic version of this worksheet is available on www.irs.gov. Enter “AMT Assistant” in the search box on the Exception. Fill in Form 6251 instead of using the worksheet on page 41 if you claimed or received any of the following items. • Accelerated depreciation. • Stock by exercising an incentive stock option and you did not dispose of the stock in the same year. • Tax-exempt interest from private activity bonds. • Intangible drilling, circulation, research, experimental, or mining costs. • Amortization of pollution-control facilities or depletion. • Income or (loss) from tax-shelter farm activities or passive activities. • Income from long-term contracts not figured using the percentage-of-completion method. • Interest paid on a home mortgage not used to buy, build, or substantially improve your home. • Investment interest expense reported on Form 4952. • Net operating loss deduction. • Alternative minimum tax adjustments from an estate, trust, electing large partnership, or cooperative. • Section 1202 exclusion. • Any general business credit in Part I of Form 3800. • Empowerment zone and renewal community employment credit. • Qualified electric vehicle credit. • Alternative fuel vehicle refueling property credit. • Credit for prior year minimum tax. 1. All of your gross foreign source income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement). 2. If you had dividend income from shares of stock, you held those shares for at least 16 days. 3. You are not filing Form 4563 or excluding income from sources within Puerto Rico. 4. The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly). 5. All of your foreign taxes were: a. Legally owed and not eligible for a refund, and b. Paid to countries that are recognized by the United States and do not support terrorism. For more details on these requirements, see the Instructions for Form 1116. Do you meet all five requirements above? ❏ Yes. Enter on line 47 the smaller of (a) your total foreign taxes, or (b) the amount on Form 1040, line 44. c. You, or your spouse if filing jointly, could be claimed as a dependent on someone else’s 2009 return. 5. Your child whom you could not claim as a dependent because of the rules for Children of divorced or separated parents that begin on page 18. For details, use TeleTax topic 602 (see page 94) or see Form 2441. Line 49 Education Credits If you (or your dependent) paid qualified expenses in 2009 for yourself, your spouse, or your dependent to enroll in or attend an eligible educational institution, you may be able to take an education credit. See Form 8863 for details. However, you cannot take an education credit if any of the following applies. • You, or your spouse if filing jointly, are claimed as a dependent on someone else’s (such as your parent’s) 2009 tax return. • Your filing status is married filing separately. • The amount on Form 1040, line 38, is $90,000 or more ($180,000 or more if married filing jointly). • You are taking a deduction for tuition and fees on Form 1040, line 34, for the same student. • You, or your spouse, were a nonresident alien for any part of 2009 unless your filing status is married filing jointly. ❏ No. See Form 1116 to find out if you can take the credit and, if you can, if you have to file Form 1116. Line 48 Credit for Child and Dependent Care Expenses You may be able to take this credit if you paid someone to care for any of the following persons. 1. Your qualifying child under age 13 whom you claim as your dependent. 2. Your disabled spouse who could not care for himself or herself, and who lived with you for more than half the year. 3. Any disabled person not able to care for himself or herself, who lived with you for more than half the year, and whom you claim as a dependent. 4. Any disabled person not able to care for himself or herself, who lived with you for more than half the year, and whom you could have claimed as a dependent except that: a. The person filed a joint return, b. The person had $3,650 or more of gross income, or Line 50 Retirement Savings Contributions Credit (Saver’s Credit) You may be able to take this credit if you, or your spouse if filing jointly, made (a) contributions, other than rollover contributions, to a traditional or Roth IRA; (b) elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan; (c) voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan); or (d) contributions to a 501(c)(18)(D) plan. However, you cannot take the credit if either of the following applies. 1. The amount on Form 1040, line 38, is more than $27,750 ($41,625 if head of household; $55,500 if married filing jointly). 2. The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1992, (b) is claimed as Form 6251 should be filled in for a child if Form 8615 must be used to figure the child’s tax CAUTION and the child’s adjusted gross income on Form 1040, line 38, exceeds the child’s earned income by more than $6,700. To find out when Form 8615 must be used, see page 38. ! Line 47 Foreign Tax Credit If you paid income tax to a foreign country, you may be able to take this credit. Gener- Need more information or forms? See page 96. - 40 - Form 1040 — Lines 45 Through 50 a dependent on someone else’s 2009 tax return, or (c) was a student (defined next). You were a student if during any part of 5 calendar months of 2009 you: • Were enrolled as a full-time student at a school, or • Took a full-time, on-farm training course given by a school or a state, county, or local government agency. A school includes a technical, trade, or mechanical school. It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. For more details, use TeleTax topic 610 (see page 94) or see Form 8880. Worksheet To See if You Should Fill in Form 6251—Line 45 Before you begin: Keep for Your Records Be sure you have read the Exception on page 40 to see if you must fill in Form 6251 instead of using this worksheet. If you are claiming the foreign tax credit (see the instructions for Form 1040, line 47, on page 40), enter that credit on line 47. 1. Are you filing Schedule A? No. Enter the amount from Form 1040, line 38. .............................. Yes. Enter the amount from Form 1040, line 41. 2. Enter any amount from Form 8914, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. If filing Schedule L, enter the total of lines 6 and 20 from Schedule L. Otherwise, enter -0- . . 3. 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Subtract line 4 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. If filing Schedule A, enter the smaller of the amount on Schedule A, line 4, or 2.5% (.025) of the amount on Form 1040, line 38 (but not less than zero). Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. If filing Schedule A, enter the total of the amounts from Schedule A, lines 5, 6, 8, and 27. Otherwise, enter -08. Add lines 5 through 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. Enter any tax refund from Form 1040, lines 10 and 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. Enter the amount shown below for your filing status. • Single or head of household — $46,700 • Married filing jointly or Qualifying widow(er) — $70,950 .............................. • Married filing separately — $35,475 12. Is the amount on line 10 more than the amount on line 11? No. STOP You do not need to fill in Form 6251. } . . 1. . . 4. . . 5. . . . . . . . . . . 6. 7. 8. 9. 10. } } . . 11. Yes. Subtract line 11 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. Enter the amount shown below for your filing status. • Single or head of household — $112,500 • Married filing jointly or qualifying widow(er) — $150,000 ................ • Married filing separately — $75,000 14. Is the amount on line 10 more than the amount on line 13? No. Skip lines 14 and 15; enter on line 16 the amount from line 12, and go to line 17. Yes. Subtract line 13 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. Multiply line 14 by 25% (.25) and enter the smaller of the result or line 11 above . . . . . . 16. Add lines 12 and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. Is the amount on line 16 more than $175,000 ($87,500 if married filing separately)? Yes. STOP Fill in Form 6251 to see if you owe the alternative minimum tax. . . . . . . . . . . . . . . . . 12. . . . . . . . . . . . . . . . . 13. . . . . . . . . . . . . . . . . 14. . . . . . . . . . . . . . . . . 15. . . . . . . . . . . . . . . . . 16. No. Multiply line 16 by 26% (.26) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. 18. Enter the amount from Form 1040, line 44, minus the total of any tax from Form 4972 and any amount on Form 1040, line 47. If you used Schedule J to figure your tax, the amount for Form 1040, line 44, must be refigured without using Schedule J . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. Next. Is the amount on line 17 more than the amount on line 18? Yes. Fill in Form 6251 to see if you owe the alternative minimum tax. No. You do not owe alternative minimum tax and do not need to fill in Form 6251. Leave line 45 blank. - 41 - Need more information or forms? See page 96. Form 1040 — Line 51 Line 51—Child Tax Credit Three Steps To Take the Child Tax Credit! Step 1. Step 2. Step 3. Make sure you have a qualifying child for the child tax credit. Follow Steps 1 through 3 in the instructions for line 6c on page 17. Make sure you checked the box on Form 1040, line 6c, column (4), for each qualifying child. Answer the questions on this page to see if you can use the worksheet on pages 43 and 44 to figure your credit or if you must use Pub. 972. Question Who Must Use Pub. 972 Pub. 972 1. Are you claiming any of the following credits? • Mortgage interest credit, Form 8396. • Adoption credit, Form 8839. • District of Columbia first-time homebuyer credit, Form 8859. • Residential energy efficient property credit, Form 5695, Part II. Yes. STOP No. Continue You must use Pub. 972 to figure your child tax credit. You will also need the form(s) listed above for any credit(s) you are claiming. 2. Are you excluding income from Puerto Rico or are you filing any of the following forms? • Form 2555 or 2555-EZ (relating to foreign earned income). • Form 4563 (exclusion of income for residents of American Samoa). Yes. STOP You must use Pub. 972 to figure your credit. No. Use the worksheet on pages 43 and 44 to figure your credit. Need more information or forms? See page 96. - 42 - Form 1040 — Line 51 Child Tax Credit Worksheet—Line 51 Keep for Your Records CAUTION ● To be a qualifying child for the child tax credit, the child must be your dependent, under age 17 at the end of 2009, and meet all the conditions in Steps 1 through 3 on page 17. ● Do not use this worksheet if you answered “Yes” to question 1 or 2 on page 42. Instead, use Pub. 972. 1. Part 1 2. 3. Number of qualifying children: Enter the result. Enter the amount from Form 1040, line 38. $1,000. 1 2 Enter the amount shown below for your filing status. ● Married filing jointly — $110,000 ● Single, head of household, or qualifying widow(er) — $75,000 ● Married filing separately — $55,000 3 4. Is the amount on line 2 more than the amount on line 3? No. Leave line 4 blank. Enter -0- on line 5, and go to line 6. Yes. Subtract line 3 from line 2. If the result is not a multiple of $1,000, increase it to the next multiple of $1,000. For example, increase $425 to $1,000, increase $1,025 to $2,000, etc. 4 5. 6. Multiply the amount on line 4 by 5% (.05). Enter the result. Is the amount on line 1 more than the amount on line 5? No. STOP You cannot take the child tax credit on Form 1040, line 51. You also cannot take the additional child tax credit on Form 1040, line 65. Complete the rest of your Form 1040. Yes. Subtract line 5 from line 1. Enter the result. Go to Part 2 on the next page. 5 6 - 43 - Need more information or forms? See page 96. Form 1040 — Line 51 Child Tax Credit Worksheet—Continued from page 43 Before you begin Part 2: Form 8936; or Schedule R. Keep for Your Records Figure the amount of any credits you are claiming on Form 5695, Part I; Form 8834, Part I; Form 8910; Part 2 7. 8. Enter the amount from Form 1040, line 46. Add the following amounts from: Form 1040, line 47 Form 1040, line 48 + Form 1040, line 49 + Form 1040, line 50 + Form 5695, line 11 + Form 8834, line 22 + Form 8910, line 21 + Form 8936, line 14 + Schedule R, line 24 + 8 Enter the total. 7 9. Are the amounts on lines 7 and 8 the same? Yes. STOP You cannot take this credit because there is no tax to reduce. However, you may be able to take the additional child tax credit. See the TIP below. No. Subtract line 8 from line 7. 9 10. Is the amount on line 6 more than the amount on line 9? Yes. Enter the amount from line 9. Also, you may be able to take the additional child tax credit. See the TIP below. No. Enter the amount from line 6. This is your child tax credit. 10 Enter this amount on Form 1040, line 51. TIP You may be able to take the additional child tax credit on Form 1040, line 65, if you answered “Yes” on line 9 or line 10 above. ● First, complete your Form 1040 through lines 64a and 64b. ● Then, use Form 8812 to figure any additional child tax credit. 1040 Need more information or forms? See page 96. - 44 - Form 1040 — Lines 52 Through 58 Line 52 Include the following credits on line 52 and check the appropriate box(es). To find out if you can take the credit, see the form indicated. Mortgage interest credit. If a state or local government gave you a mortgage credit certificate, see Form 8396. Adoption credit. You may be able to take this credit if you paid expenses to adopt a child or you adopted a child with special needs and the adoption became final in 2009. See the Instructions for Form 8839. Nonbusiness energy property credit. You may be able to take this credit by completing and attaching Form 5695 for any of the following improvements to your main home located in the United States in 2009 if they are new and meet certain requirements for energy efficiency. • Any insulation material or system primarily designed to reduce heat gain or loss in your home. • Exterior windows (including skylights). • Exterior doors. • A metal roof or asphalt roof with pigmented coatings or cooling granules primarily designed to reduce the heat gain in your home. You may also be able to take this credit for the cost of the following items if the items meet certain performance and quality standards. • Certain electric heat pump water heaters, electric heat pumps, central air conditioners, and natural gas, propane, or oil water heaters. • A qualified furnace or hot water boiler that uses natural gas, propane, or oil. • A stove that burns biomass fuel to heat your home or to heat water for use in your home. • An advanced main air circulating fan used in a natural gas, propane, or oil furnace. If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of such association or corporation for purposes of this credit. For details, see Form 5695. Resi d ential energy efficient property credit. You may be able to take this credit • Qualified small wind energy property for use in connection with your home located in the United States. • Qualified geothermal heat pump property installed on or in connection with your home located in the United States. If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of such association or corporation for purposes of this credit. For details, see Form 5695. Other Taxes Line 57 Unreported Social Security and Medicare Tax from Forms 4137 and 8919 Enter the total of any taxes from Form 4137 and Form 8919. Check the appropriate box(es). Form 4137. If you received tips of $20 or more in any month and you did not report the full amount to your employer, you must pay the social security and Medicare or railroad retirement (RRTA) tax on the unreported tips. You must also pay this tax if your Form(s) W-2 shows allocated tips that you are including in your income on Form 1040, line 7. Line 53 Other Credits Include the following credits on line 53 and check the appropriate box(es). If box c is checked, also enter the applicable form number. To find out if you can take the credit, see the form or publication indicated. • Credit for the elderly or the disabled. See Schedule R. • District of Columbia first-time homebuyer credit. See Form 8859. • Qualified plug-in electric drive motor vehicle credit. See Form 8936. • Qualified plug-in electric vehicle credit. See Form 8834, Part I. • Qualified electric vehicle credit. You cannot claim this credit for a vehicle placed in service after 2006. You can claim this credit only if you have a passive activity electric vehicle credit carried forward from a prior year. See Form 8834, Part II. • Alternative motor vehicle credit. See Form 8910 if you placed an alternative motor vehicle (such as a qualified hybrid vehicle) in service during 2009 or converted a motor vehicle to a qualified plug-in electric drive motor vehicle and placed it in service after February 17, 2009. • Alternative fuel vehicle refueling property credit. See Form 8911. • General business credit. This credit consists of a number of credits that usually apply only to individuals who are partners, shareholders in an S corporation, self-employed, or who have rental property. See Form 3800 or Pub. 334. • Credit for prior year minimum tax. If you paid alternative minimum tax in a prior year, see Form 8801. • Credit to holders of tax credit bonds. See Form 8912. To figure the social security and Medicare tax, use Form 4137. If you owe RRTA tax, contact your employer. Your employer will figure and collect the RRTA tax. You may be charged a penalty equal to 50% of the social security and Medicare tax due on CAUTION tips you received but did not report to your employer. ! Form 8919. If you are an employee who received wages from an employer who did not withhold social security and Medicare tax from your wages, use Form 8919 to figure your share of the unreported tax. Include on line 57 the amount from line 13 of Form 8919. Include the amount from line 6 of Form 8919 on Form 1040, line 7. Line 58 Additional Tax on IRAs, Other Qualified Retirement Plans, etc. You may not owe this tax if the distribution was made or repaid TIP because of the storms, tornadoes, or flooding in a Midwestern disaster area. For details, see Pub. 4492-B. If any of the following apply, see Form 5329 and its instructions to find out if you owe this tax and if you must file Form 5329. 1. You received an early distribution from (a) an IRA or other qualified retirement plan, (b) an annuity, or (c) a modified endowment contract entered into after June 20, 1988, and the total distribution was not rolled over in a qualified rollover contribution. 2. Excess contributions were made to your IRAs, Coverdell education savings ac- by completing and attaching Form 5695 if you paid for any of the following during 2009. • Qualified solar electric property for use in your home located in the United States. • Qualified solar water heating property for use in your home located in the United States. • Qualified fuel cell property installed on or in connection with your main home located in the United States. - 45 - Need more information or forms? See page 96. Form 1040 — Lines 58 Through 61 counts (ESAs), Archer MSAs, or health savings accounts (HSAs). 3. You received taxable distributions from Coverdell ESAs or qualified tuition programs. Exception. If only item (1) applies and dis- Line 60 Total Tax Include in the total on line 60 any of the following taxes. To find out if you owe the tax, see the form or publication indicated. On the dotted line next to line 60, enter the amount of the tax and identify it as indicated. 1. Additional tax on health savings account (HSA) distributions (see Form 8889, Part II). Identify as “HSA.” 2. Additional tax on an HSA because you did not remain an eligible individual during the testing period (see Form 8889, Part III). Identify as “HDHP.” 3. Additional tax on Archer MSA distributions (see Form 8853). Identify as “MSA.” 4. Additional tax on Medicare Advantage MSA distributions (see Form 8853). Identify as “Med MSA.” 5. Recapture of the following credits. a. Investment credit (see Form 4255). Identify as “ICR.” b. First-time homebuyer credit (see Form 5405). Identify as “FTHCR.” c. Low-income housing credit (see Form 8611). Identify as “LIHCR.” d. Qualified electric vehicle credit (see Form 8834). Identify as “QEVCR.” e. Indian employment credit (see Form 8845). Identify as “IECR.” f. New markets credit (see Form 8874). Identify as “NMCR.” g. Credit for employer-provided child care facilities (see Form 8882). Identify as “ECCFR.” h. Alternative motor vehicle credit (see Form 8910). Identify as “AMVCR.” i. Alternative fuel vehicle refueling property credit (see Form 8911). Identify as “ARPCR.” 6. Recapture of federal mortgage subsidy. If you sold your home in 2009 and it was financed (in whole or in part) from the proceeds of any tax-exempt qualified mortgage bond or you claimed the mortgage interest credit, see Form 8828. Identify as “FMSR.” 7. Recapture of COBRA premium assistance. If you received premium assistance under COBRA continuation coverage that covered you, your spouse, or any of your dependents, and your modified adjusted gross income is more than $125,000 ($250,000 if married filing jointly), see Pub. 502. Identify as “COBRA.” 8. Section 72(m)(5) excess benefits tax (see Pub. 560). Identify as ‘‘Sec. 72(m)(5).’’ 9. Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. This tax should be shown in box 12 of Form W-2 with tribution code 1 is correctly shown in box 7 of Form 1099-R, you do not have to file Form 5329. Instead, multiply the taxable amount of the distribution by 10% (.10) and enter the result on line 58. The taxable amount of the distribution is the part of the distribution you reported on Form 1040, line 15b or line 16b, or on Form 4972. Also, enter “No” under the heading “Other Taxes” to the left of line 58 to indicate that you do not have to file Form 5329. But if distribution code 1 is incorrectly shown in box 7 of Form 1099-R or you qualify for an exception for qualified medical expenses, qualified higher education expenses, qualified first-time homebuyer distributions, or a qualified reservist distribution, you must file Form 5329. Line 59 Additional Taxes Enter the total of any advance earned income credit (AEIC) payments you received and household employment taxes from Schedule H. Check the appropriate box(es). AEIC payments. Enter the amount of AEIC payments you received. These payments are shown in box 9 of Form(s) W-2. Household employment taxes. If any of the following apply, see Schedule H and its instructions to find out if you owe these taxes. 1. You paid any one household employee (defined below) cash wages of $1,700 or more in 2009. Cash wages include wages paid by check, money order, etc. But do not count amounts paid to an employee who was under age 18 at any time in 2009 and was a student. 2. You withheld federal income tax during 2009 at the request of any household employee. 3. You paid total cash wages of $1,000 or more in any calendar quarter of 2008 or 2009 to household employees. Household employee. Any person who does household work is a household employee if you can control what will be done and how it will be done. Household work includes work done in or around your home by babysitters, nannies, health aides, maids, yard workers, and similar domestic workers. codes A and B or M and N. Identify as “UT.” 10. Golden parachute payments. If you received an excess parachute payment (EPP), you must pay a 20% tax on it. This tax should be shown in box 12 of Form W-2 with code K. If you received a Form 1099-MISC, the tax is 20% of the EPP shown in box 13. Identify as “EPP.” 11. Tax on accumulation distribution of trusts (see Form 4970). Identify as “ADT.” 12. Excise tax on insider stock compensation from an expatriated corporation. You may owe a 15% excise tax on the value of nonstatutory stock options and certain other stock-based compensation held by you or a member of your family from an expatriated corporation or its expanded affiliated group in which you were an officer, director, or more-than-10% owner. See section 4985. Identify as “ISC.” 13. Additional tax on income you received from a nonqualified deferred compensation plan that fails to meet certain requirements. This income should be shown in box 12 of Form W-2 with code Z, or in box 15b of Form 1099-MISC. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 409A(a)(1)(B)(ii). See section 409A(a)(1)(B) for details. Identify as “NQDC.” 14. Interest on the tax due on installment income from the sale of certain residential lots and timeshares. Identify as “453(l)(3).” 15. Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000. Identify as “453A(c).” 16. Additional tax on recapture of a charitable contribution deduction relating to a fractional interest in tangible personal property. See Pub. 526. Identify as “FITPP.” 17. Look-back interest under section 167(g) or 460(b). See Form 8697 or 8866. Identify as “From Form 8697” or “From Form 8866.” Payments Line 61 Federal Income Tax Withheld Add the amounts shown as federal income tax withheld on your Forms W-2, W-2G, and 1099-R. Enter the total on line 61. The amount withheld should be shown in box 2 of Form W-2 or W-2G, and in box 4 of Form 1099-R. Attach Forms W-2G and 1099-R to the front of your return if federal income tax was withheld. If you received a 2009 Form 1099 showing federal income tax withheld on Need more information or forms? See page 96. - 46 - Form 1040 — Lines 61 Through 63 dividends, taxable or tax-exempt interest income, unemployment compensation, social security benefits, or other income you received, include the amount withheld in the total on line 61. This should be shown in box 4 of Form 1099 or box 6 of Form SSA-1099. mer spouse, enter your former spouse’s SSN in the space provided on the front of Form 1040. If you were divorced and remarried in 2009, enter your present spouse’s SSN in the space provided on the front of Form 1040. Also, under the heading Payments to the left of line 62, enter your former spouse’s SSN, followed by “DIV.” Even if the federal income tax withheld from your pay was reduced because of this credit, you must claim the credit on your return to benefit from it. Line 62 2009 Estimated Tax Payments Enter any estimated federal income tax payments you made for 2009. Include any overpayment that you applied to your 2009 estimated tax from: • Your 2008 return, or • An amended return (Form 1040X). If you and your spouse paid joint estimated tax but are now filing separate income tax returns, you can divide the amount paid in any way you choose as long as you both agree. If you cannot agree, you must divide the payments in proportion to each spouse’s individual tax as shown on your separate returns for 2009. For an example of how to do this, see Pub. 505. Be sure to show both social security numbers (SSNs) in the space provided on the separate returns. If you or your spouse paid separate estimated tax but you are now filing a joint return, add the amounts you each paid. Follow these instructions even if your spouse died in 2009 or in 2010 before filing a 2009 return. Name Change If you changed your name because of marriage, divorce, etc., and you made estimated tax payments using your former name, attach a statement to the front of Form 1040. On the statement, explain all the payments you and your spouse made in 2009 and the name(s) and SSN(s) under which you made them. ery payment in 2009 because you were a recipient of social security benefits, supplemental security income, railroad retirement benefits, or certain veterans disability compensation or pension benefits, • Your modified AGI is more than $75,000 ($150,000 if married filing jointly), or • You take the government retiree credit discussed next. • You received a $250 economic recov- The credit is reduced if: Government Retiree Credit You can take this credit if you received a pension or annuity payment in 2009 for service performed for the U.S. Government or any state or local government (or any agency of one or more of these) and the service was not covered by social security. The credit is $250 ($500 if married filing jointly and both you and your spouse received a qualifying pension or annuity). However, you cannot take this credit if you received a $250 economic recovery payment in 2009. If you file a joint return, both you and your spouse received a qualifying pension or annuity, and both of you received an economic recovery payment in 2009, no government retiree credit is allowed. If only one of you received an economic recovery payment in 2009, the credit is $250. This credit reduces your making work pay credit. Line 63 Making Work Pay and Government Retiree Credits Complete Schedule M to take either the: • Making work pay credit, or • Government retiree credit. Making Work Pay Credit You may be able to take this credit if you have earned income from work. However, you cannot take the credit if: • Your modified adjusted gross income (AGI) is $95,000 ($190,000 if married filing jointly) or more, or • You can be claimed as a dependent on someone else’s return. Divorced Taxpayers If you got divorced in 2009 and you made joint estimated tax payments with your for- - 47 - Need more information or forms? See page 96. Form 1040 — Lines 64a and 64b Lines 64a and 64b— Earned Income Credit (EIC) What Is the EIC? The EIC is a credit for certain people who work. The credit may give you a refund even if you do not owe any tax. 3. Is your filing status married filing separately? Yes. STOP No. Continue You cannot take the credit. 4. Are you filing Form 2555 or 2555-EZ (relating to foreign earned income)? Yes. STOP TIP Special rules may apply for people who had to relocate because of the storms, tornadoes, or flooding in a Midwestern disaster area. For details, see Pub. 4492-B. No. Continue You cannot take the credit. 5. Were you or your spouse a nonresident alien for any part of 2009? Yes. See Nonresident aliens on page 51. No. Go to Step 2. To Take the EIC: • Follow the steps below. • Complete the worksheet that applies to you or let the IRS figure the credit for you. • If you have a qualifying child, complete and attach Schedule EIC. For help in determining if you are eligible for the EIC, go to www.irs.gov/eitc and click on “EITC Assistant.” This service is available in English and Spanish. Step 2 Investment Income If you take the EIC even though you are not eligible and it is determined that your error is due to reckless or intentional disregard of the EIC rules, you will not be CAUTION allowed to take the credit for 2 years even if you are otherwise eligible to do so. If you fraudulently take the EIC, you will not be allowed to take the credit for 10 years. See Form 8862, who must file, that begins on page 50. You may also have to pay penalties. ! 1. Add the amounts from Form 1040: Line Line Line Line 8a 8b 9a 13* + + + Step 1 All Filers Investment Income = *If line 13 is a loss, enter -0-. 2. Is your investment income more than $3,100? Yes. Continue No. Skip question 3; go to question 4. 1. If, in 2009: • 3 or more children lived with you, is the amount on Form 1040, line 38, less than $43,279 ($48,279 if married filing jointly)? • 2 children lived with you, is the amount on Form 1040, line 38, less than $40,295 ($45,295 if married filing jointly)? • 1 child lived with you, is the amount on Form 1040, line 38, less than $35,463 ($40,463 if married filing jointly)? • No children lived with you, is the amount on Form 1040, line 38, less than $13,440 ($18,440 if married filing jointly)? Yes. Continue No. STOP 3. Are you filing Form 4797 (relating to sales of business property)? Yes. See Form 4797 filers on page 50. No. STOP You cannot take the credit. You cannot take the credit. 2. Do you, and your spouse if filing a joint return, have a social security number that allows you to work or is valid for EIC purposes (see page 51)? Yes. Continue No. STOP You cannot take the credit. Enter “No” on the dotted line next to line 64a. 4. Do any of the following apply for 2009? • You are filing Schedule E. • You are a member of a qualified joint venture that is a passive activity reporting rental real estate income not subject to self-employment tax on Schedule C or C-EZ. • You are reporting income from the rental of personal property not used in a trade or business. • You are reporting income on Form 1040, line 21, from Form 8814 (relating to election to report child’s interest and dividends). Yes. You must use Worksheet 1 in Pub. 596 to see if you can take the credit. No. Go to Step 3. Need more information or forms? See page 96. - 48 - Form 1040 — Lines 64a and 64b Continued from page 48 Step 3 Qualifying Child 2. Could you, or your spouse if filing a joint return, be a qualifying child of another person in 2009? Yes. STOP A qualifying child for the EIC is a child who is your... Son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew) You cannot take the credit. Enter “No” on the dotted line next to line 64a. No. Skip Step 4; go to Step 5 on page 50. Step 4 Filers Without a Qualifying Child AND was ... Under age 19 at the end of 2009 and younger than you (or your spouse, if filing jointly) or Under age 24 at the end of 2009, a student (see page 51), and younger than you (or your spouse, if filing jointly) or Any age and permanently and totally disabled (see page 51) 1. Is the amount on Form 1040, line 38, less than $13,440 ($18,440 if married filing jointly)? Yes. Continue No. STOP You cannot take the credit. 2. Could you, or your spouse if filing a joint return, be a qualifying child of another person in 2009? Yes. STOP No. Continue You cannot take the credit. Enter “No” on the dotted line next to line 64a. 3. Can you, or your spouse if filing a joint return, be claimed as a dependent on someone else’s 2009 tax return? Yes. STOP AND Who is not filing a joint return for 2009 (or is filing a joint return for 2009 only as a claim for refund) No. Continue AND Who lived with you in the United States for more than half of 2009. If the child did not live with you for the required time, see Exception to time lived with you on page 50. You cannot take the credit. 4. Were you, or your spouse if filing a joint return, at least age 25 but under age 65 at the end of 2009? If your spouse died in 2009, see Pub. 596 before you answer. Yes. Continue No. STOP You cannot take the credit. 5. Was your home, and your spouse’s if filing a joint return, in the United States for more than half of 2009? Members of the military stationed outside the United States, see page 51 before you answer. Yes. Go to Step 5 on page 50. No. STOP If the child meets the conditions to be a qualifying child of any other person (other than your spouse if filing a joint return) for 2009, or the child was married, see page 51. CAUTION ! 1. Do you have at least one child who meets the conditions to be your qualifying child? Yes. The child must have a valid social security number (SSN) as defined on page 51 unless the child was born and died in 2009. If at least one qualifying child has a valid SSN (or was born or died in 2009), go to question 2. Otherwise, you cannot take the credit. No. Skip question 2; go to Step 4. You cannot take the credit. Enter “No” on the dotted line next to line 64a. - 49 - Need more information or forms? See page 96. Form 1040 — Lines 64a and 64b Continued from page 49 • No qualifying children, is your earned income less than Step 5 Earned Income 1. Are you filing Schedule SE because you were a member of the clergy or you had church employee income of $108.28 or more? Yes. See Clergy or No. Continue Church employees, whichever applies, on this page. 2. Figure earned income: $13,440 ($18,440 if married filing jointly)? Yes. Go to Step 6. No. STOP You cannot take the credit. Step 6 How To Figure the Credit No. Go to Worksheet A on page 52. 1. Do you want the IRS to figure the credit for you? Yes. See Credit figured by the IRS on this page. • • • Form 1040, line 7 Subtract, if included on line 7, any: Taxable scholarship or fellowship grant not reported on a Form W-2. Amount received for work performed while an inmate in a penal institution (enter “PRI” and the amount subtracted on the dotted line next to Form 1040, line 7). Amount received as a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan (enter “DFC” and the amount subtracted on the dotted line next to Form 1040, line 7). This amount may be shown in box 11 of Form W-2. If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity. } Definitions and Special Rules Adopted child. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption. Church employees. Determine how much of the amount on Form – Add all of your nontaxable combat pay if you elect to include it in earned income. Also enter this amount on Form 1040, line 64b. See Combat pay, nontaxable on this page. + 1040, line 7, was also reported on Schedule SE, line 5a. Subtract that amount from the amount on Form 1040, line 7, and enter the result in the first space of Step 5, line 2. Be sure to answer “Yes” to question 3 in Step 5. Clergy. The following instructions apply to ministers, members of religious orders who have not taken a vow of poverty, and Christian Science practitioners. If you are filing Schedule SE and the amount on line 2 of that schedule includes an amount that was also reported on Form 1040, line 7: 1. Enter “Clergy” on the dotted line next to Form 1040, line 64a. 2. Determine how much of the amount on Form 1040, line 7, was also reported on Schedule SE, line 2. 3. Subtract that amount from the amount on Form 1040, line 7. Enter the result in the first space of Step 5, line 2. 4. Be sure to answer “Yes” to question 3 in Step 5. Combat pay, nontaxable. If you were a member of the U.S. Armed Electing to include nontaxable combat pay may increase or decrease your EIC. Figure the credit with and without your nontaxable combat pay before making the election. CAUTION ! Earned Income = 3. Were you self-employed at any time in 2009, or are you filing Schedule SE because you were a member of the clergy or you had church employee income, or are you filing Schedule C or C-EZ as a statutory employee? Yes. Skip question 4 and Step 6; go to Worksheet B on page 53. No. Continue Forces who served in a combat zone, certain pay is excluded from your income. See Combat Zone Exclusion in Pub. 3. You can elect to include this pay in your earned income when figuring the EIC. The amount of your nontaxable combat pay should be shown in box 12 of Form(s) W-2 with code Q. If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Credit figured by the IRS. To have the IRS figure your EIC: 1. Enter “EIC” on the dotted line next to Form 1040, line 64a. 2. Be sure you enter the nontaxable combat pay you elect to include in earned income on Form 1040, line 64b. See Combat pay, nontaxable above. 3. If you have a qualifying child, complete and attach Schedule EIC. If your EIC for a year after 1996 was reduced or disallowed, see Form 8862, who must file below. Exception to time lived with you. Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you. Also see Kidnapped child on page 19 or Members of the military on page 51. A child is considered to have lived with you for all of 2009 if the child was born or died in 2009 and your home was this child’s home for the entire time he or she was alive in 2009. Form 4797 filers. If the amount on Form 1040, line 13, includes an 4. If you have: • 3 or more qualifying children, is your earned income less than $43,279 ($48,279 if married filing jointly)? • 2 qualifying children, is your earned income less than $40,295 ($45,295 if married filing jointly)? • 1 qualifying child, is your earned income less than $35,463 ($40,463 if married filing jointly)? amount from Form 4797, you must use Worksheet 1 in Pub. 596 to see if you can take the EIC. Otherwise, stop; you cannot take the EIC. Form 8862, who must file. You must file Form 8862 if your EIC for a year after 1996 was reduced or disallowed for any reason other Need more information or forms? See page 96. - 50 - Form 1040 — Lines 64a and 64b than a math or clerical error. But do not file Form 8862 if either of the following applies. • You filed Form 8862 for another year, the EIC was allowed for that year, and your EIC has not been reduced or disallowed again for any reason other than a math or clerical error. • You are taking the EIC without a qualifying child and the only reason your EIC was reduced or disallowed in the other year was because it was determined that a child listed on Schedule EIC was not your qualifying child. Also, do not file Form 8862 or take the credit for the: • 2 years after the most recent tax year for which there was a final determination that your EIC claim was due to reckless or intentional disregard of the EIC rules, or • 10 years after the most recent tax year for which there was a final determination that your EIC claim was due to fraud. Foster child. A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. For more details on authorized placement agencies, see Pub. 596. Married child. A child who was married at the end of 2009 is a • If only one of the persons is the child’s parent, the child is claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time in 2009. If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for 2009. • If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for 2009. • If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for 2009, but only if that person’s AGI is higher than the highest AGI of any parent of the child. Example. Your daughter meets the conditions to be a qualifying child for both you and your mother. Your daughter does not meet the conditions to be a qualifying child of any other person, including her other parent. Under the rules above, you can claim your daughter as a qualifying child for all of the six tax benefits listed above for which you otherwise qualify. Your mother cannot claim any of the six tax benefits listed above unless she has a different qualifying child. However, if your mother’s AGI is higher than yours and the other parent’s and you do not claim your daughter as a qualifying child, your daughter is the qualifying child of your mother. For more details and examples, see Pub. 596. If you will not be taking the EIC with a qualifying child, enter “No” on the dotted line next to line 64a. Otherwise, go to Step 3, question 1, on page 49. Social security number (SSN). For the EIC, a valid SSN is a num- • If the parents do not file a joint return together but both parents treated as the qualifying child of the parent. qualifying child only if (a) you can claim him or her as your dependent on Form 1040, line 6c, or (b) you could have claimed him or her as your dependent except for the special rule for Children of divorced or separated parents that begins on page 18. Members of the military. If you were on extended active duty outside the United States, your home is considered to be in the United States during that duty period. Extended active duty is military duty ordered for an indefinite period or for a period of more than 90 days. Once you begin serving extended active duty, you are considered to be on extended active duty even if you do not serve more than 90 days. Nonresident aliens. If your filing status is married filing jointly, go to Step 2 on page 48. Otherwise, stop; you cannot take the EIC. Enter “No” on the dotted line next to line 64a. Permanently and totally disabled. A person is permanently and totally disabled if, at any time in 2009, the person cannot engage in any substantial gainful activity because of a physical or mental condition and a doctor has determined that this condition (a) has lasted or can be expected to last continuously for at least a year, or (b) can be expected to lead to death. Qualifying child of more than one person. Even if a child meets the conditions to be the qualifying child of more than one person, only one person can claim the child as a qualifying child for all of the following tax benefits, unless the special rule for Children of divorced or separated parents beginning on page 18 applies. 1. Dependency exemption (line 6c). 2. Child tax credits (lines 51 and 65). 3. Head of household filing status (line 4). 4. Credit for child and dependent care expenses (line 48). 5. Exclusion for dependent care benefits (Form 2441, Part III). 6. Earned income credit (lines 64a and 64b). No other person can take any of the six tax benefits listed above unless he or she has a different qualifying child. If you and any other person can claim the child as a qualifying child, the following rules apply. ber issued by the Social Security Administration unless “Not Valid for Employment” is printed on the social security card and the number was issued solely to apply for or receive a federally funded benefit. To find out how to get an SSN, see page 14. If you will not have an SSN by the date your return is due, see What if You Cannot File on Time? on page 8. Student. A student is a child who during any part of 5 calendar months of 2009 was enrolled as a full-time student at a school, or took a full-time, on-farm training course given by a school or a state, county, or local government agency. A school includes a technical, trade, or mechanical school. It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Welfare benefits, effect of credit on. Any refund you receive as a result of taking the EIC will not be used to determine if you are eligible for the following programs or how much you can receive from them. But if the refund you receive because of the EIC is not spent within a certain period of time, it can count as an asset (or resource) and affect your eligibility. • Temporary Assistance for Needy Families (TANF). • Medicaid and supplemental security income (SSI). • Supplemental Nutrition Assistance Program (food stamps) and low-income housing. - 51 - Need more information or forms? See page 96. Worksheet A—Earned Income Credit (EIC)—Lines 64a and 64b Keep for Your Records Before you begin: Be sure you are using the correct worksheet. Use this worksheet only if you answered “No” to Step 5, question 3, on page 50. Otherwise, use Worksheet B that begins on page 53. Part 1 1. Enter your earned income from Step 5 on page 50. 1 All Filers Using Worksheet A 2. Look up the amount on line 1 above in the EIC Table on pages 55–71 to find the credit. Be sure you use the correct column for your filing status and the number of children you have. Enter the credit here. If line 2 is zero, You cannot take the credit. Enter “No” on the dotted line next to line 64a. STOP 2 3. Enter the amount from Form 1040, line 38. 3 4. Are the amounts on lines 3 and 1 the same? Yes. Skip line 5; enter the amount from line 2 on line 6. No. Go to line 5. 5. Part 2 Filers Who Answered “No” on Line 4 If you have: ● No qualifying children, is the amount on line 3 less than $7,500 ($12,500 if married filing jointly)? ● 1 or more qualifying children, is the amount on line 3 less than $16,450 ($21,450 if married filing jointly)? Yes. Leave line 5 blank; enter the amount from line 2 on line 6. No. Look up the amount on line 3 in the EIC Table on pages 55–71 to find the credit. Be sure you use the correct column for your filing status and the number of children you have. Enter the credit here. Look at the amounts on lines 5 and 2. Then, enter the smaller amount on line 6. 5 Part 3 6. This is your earned income credit. 6 Enter this amount on Form 1040, line 64a. Your Earned Income Credit Reminder— If you have a qualifying child, complete and attach Schedule EIC. 1040 1040 EIC If your EIC for a year after 1996 was reduced or disallowed, see page 50 to find out if you must file Form 8862 to take the credit for 2009. CAUTION Need more information or forms? See page 96. - 52 - Worksheet B—Earned Income Credit (EIC)—Lines 64a and 64b Keep for Your Records Use this worksheet if you answered “Yes” to Step 5, question 3, on page 50. Complete the parts below (Parts 1 through 3) that apply to you. Then, continue to Part 4. If you are married filing a joint return, include your spouse’s amounts, if any, with yours to figure the amounts to enter in Parts 1 through 3. Part 1 1a. Enter the amount from Schedule SE, Section A, line 3, or Section B, line 3, whichever applies. b. Enter any amount from Schedule SE, Section B, line 4b, and line 5a. c. Combine lines 1a and 1b. d. Enter the amount from Schedule SE, Section A, line 6, or Section B, line 13, whichever applies. e. Subtract line 1d from 1c. 2. 1a Self-Employed, Members of the Clergy, and People With Church Employee Income Filing Schedule SE Part 2 + 1b = 1c – 1d = 1e Self-Employed NOT Required To File Schedule SE For example, your net earnings from self-employment were less than $400. Do not include on these lines any statutory employee income, any net profit from services performed as a notary public, any amount exempt from self-employment tax as the result of the filing and approval of Form 4029 or Form 4361, or any income or loss from a qualified joint venture reporting only rental real estate income not subject to self-employment tax. 2a a. Enter any net farm profit or (loss) from Schedule F, line 36, and from farm partnerships, Schedule K-1 (Form 1065), box 14, code A*. b. Enter any net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065), box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1*. c. Combine lines 2a and 2b. + 2b = 2c *Reduce any Schedule K-1 amounts by any partnership section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties. If you have any Schedule K-1 amounts, complete the appropriate line(s) of Schedule SE, Section A. Enter your name and social security number on Schedule SE and attach it to your return. Part 3 Statutory Employees Filing Schedule C or C-EZ Part 4 3. Enter the amount from Schedule C, line 1, or Schedule C-EZ, line 1, that you are filing as a statutory employee. 3 4a. Enter your earned income from Step 5 on page 50. 4a 4b All Filers Using Worksheet B Note. If line 4b includes income on which you should have paid selfemployment tax but did not, we may reduce your credit by the amount of self-employment tax not paid. b. Combine lines 1e, 2c, 3, and 4a. This is your total earned income. If line 4b is zero or less, 5. If ● ● ● ● STOP You cannot take the credit. Enter “No” on the dotted line next to line 64a. you have: 3 or more qualifying children, is line 4b less than $43,279 ($48,279 if married filing jointly)? 2 qualifying children, is line 4b less than $40,295 ($45,295 if married filing jointly)? 1 qualifying child, is line 4b less than $35,463 ($40,463 if married filing jointly)? No qualifying children, is line 4b less than $13,440 ($18,440 if married filing jointly)? Yes. If you want the IRS to figure your credit, see page 50. If you want to figure the credit yourself, enter the amount from line 4b on line 6 (page 54). No. STOP You cannot take the credit. Enter “No” on the dotted line next to line 64a. - 53 - Need more information or forms? See page 96. Worksheet Part 5 B—Continued from page 53 6. Enter your total earned income from Part 4, line 4b, on page 53. 6 Keep for Your Records All Filers Using Worksheet B 7. Look up the amount on line 6 above in the EIC Table on pages 55–71 to find the credit. Be sure you use the correct column for your filing status and the number of children you have. Enter the credit here. If line 7 is zero, STOP You cannot take the credit. Enter “No” on the dotted line next to line 64a. 7 8. Enter the amount from Form 1040, line 38. 8 9. Are the amounts on lines 8 and 6 the same? Yes. Skip line 10; enter the amount from line 7 on line 11. No. Go to line 10. Part 6 10. Filers Who Answered “No” on Line 9 If you have: ● No qualifying children, is the amount on line 8 less than $7,500 ($12,500 if married filing jointly)? ● 1 or more qualifying children, is the amount on line 8 less than $16,450 ($21,450 if married filing jointly)? Yes. Leave line 10 blank; enter the amount from line 7 on line 11. No. Look up the amount on line 8 in the EIC Table on pages 55–71 to find the credit. Be sure you use the correct column for your filing status and the number of children you have. Enter the credit here. Look at the amounts on lines 10 and 7. Then, enter the smaller amount on line 11. 10 Part 7 11. This is your earned income credit. 11 Enter this amount on Form 1040, line 64a. Your Earned Income Credit Reminder— If you have a qualifying child, complete and attach Schedule EIC. 1040 EIC If your EIC for a year after 1996 was reduced or disallowed, see page 50 to find out if you must file Form 8862 to take the credit for 2009. 1040 CAUTION Need more information or forms? See page 96. - 54 - 2009 Earned Income Credit (EIC) Table Caution. This is not a tax table. 1. To find your credit, read down the “At least - But less than” columns and find the line that includes the amount you were told to look up from your EIC Worksheet. 2. Then, go to the column that includes your filing status and the number of qualifying children you have. Enter the credit from that column on your EIC Worksheet. Example. If your filing status is single, you have one qualifying child, and the amount you are looking up from your EIC Worksheet is $2,455, you would enter $842. And your filing status is— If the amount you are looking up from the worksheet is— Single, head of household, or qualifying widow(er) and you have— No children At least But less than One child Three Two children children Your credit is— 2,400 2,450 2,450 2,500 186 189 825 842 970 990 1,091 1,114 And your filing status is – If the amount you are looking up from the worksheet is – Single, head of household, or qualifying widow(er) and you have – No Children At least But less than One Child Two Children Three Children Married filing jointly and you have – No Children One Child Two Children Three Children Your credit is – Your credit is – $1 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 1,550 1,600 1,650 1,700 1,750 1,800 1,850 1,900 1,950 2,000 2,050 2,100 2,150 2,200 2,250 2,300 2,350 2,400 2,450 $50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 1,550 1,600 1,650 1,700 1,750 1,800 1,850 1,900 1,950 2,000 2,050 2,100 2,150 2,200 2,250 2,300 2,350 2,400 2,450 2,500 $2 6 10 13 17 21 25 29 33 36 40 44 48 52 55 59 63 67 71 75 78 82 86 90 94 98 101 105 109 113 117 120 124 128 132 136 140 143 147 151 155 159 163 166 170 174 178 182 186 189 $9 26 43 60 77 94 111 128 145 162 179 196 213 230 247 264 281 298 315 332 349 366 383 400 417 434 451 468 485 502 519 536 553 570 587 604 621 638 655 672 689 706 723 740 757 774 791 808 825 842 $10 30 50 70 90 110 130 150 170 190 210 230 250 270 290 310 330 350 370 390 410 430 450 470 490 510 530 550 570 590 610 630 650 670 690 710 730 750 770 790 810 830 850 870 890 910 930 950 970 990 $11 34 56 79 101 124 146 169 191 214 236 259 281 304 326 349 371 394 416 439 461 484 506 529 551 574 596 619 641 664 686 709 731 754 776 799 821 844 866 889 911 934 956 979 1,001 1,024 1,046 1,069 1,091 1,114 $2 6 10 13 17 21 25 29 33 36 40 44 48 52 55 59 63 67 71 75 78 82 86 90 94 98 101 105 109 113 117 120 124 128 132 136 140 143 147 151 155 159 163 166 170 174 178 182 186 189 $9 26 43 60 77 94 111 128 145 162 179 196 213 230 247 264 281 298 315 332 349 366 383 400 417 434 451 468 485 502 519 536 553 570 587 604 621 638 655 672 689 706 723 740 757 774 791 808 825 842 $10 30 50 70 90 110 130 150 170 190 210 230 250 270 290 310 330 350 370 390 410 430 450 470 490 510 530 550 570 590 610 630 650 670 690 710 730 750 770 790 810 830 850 870 890 910 930 950 970 990 $11 34 56 79 101 124 146 169 191 214 236 259 281 304 326 349 371 394 416 439 461 484 506 529 551 574 596 619 641 664 686 709 731 754 776 799 821 844 866 889 911 934 956 979 1,001 1,024 1,046 1,069 1,091 1,114 (Continued on page 56) - 55 - Need more information or forms? See page 96. 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 2,500 2,550 2,600 2,650 2,700 2,750 2,800 2,850 2,900 2,950 3,000 3,050 3,100 3,150 3,200 3,250 3,300 3,350 3,400 3,450 3,500 3,550 3,600 3,650 3,700 3,750 3,800 3,850 3,900 3,950 4,000 4,050 4,100 4,150 4,200 4,250 4,300 4,350 4,400 4,450 4,500 4,550 4,600 4,650 4,700 4,750 4,800 4,850 4,900 4,950 5,000 5,050 5,100 5,150 5,200 5,250 5,300 5,350 5,400 5,450 2,550 2,600 2,650 2,700 2,750 2,800 2,850 2,900 2,950 3,000 3,050 3,100 3,150 3,200 3,250 3,300 3,350 3,400 3,450 3,500 3,550 3,600 3,650 3,700 3,750 3,800 3,850 3,900 3,950 4,000 4,050 4,100 4,150 4,200 4,250 4,300 4,350 4,400 4,450 4,500 4,550 4,600 4,650 4,700 4,750 4,800 4,850 4,900 4,950 5,000 5,050 5,100 5,150 5,200 5,250 5,300 5,350 5,400 5,450 5,500 193 197 201 205 208 212 216 220 224 228 231 235 239 243 247 251 254 258 262 266 270 273 277 281 285 289 293 296 300 304 308 312 316 319 323 327 331 335 339 342 346 350 354 358 361 365 369 373 377 381 384 388 392 396 400 404 407 411 415 419 859 876 893 910 927 944 961 978 995 1,012 1,029 1,046 1,063 1,080 1,097 1,114 1,131 1,148 1,165 1,182 1,199 1,216 1,233 1,250 1,267 1,284 1,301 1,318 1,335 1,352 1,369 1,386 1,403 1,420 1,437 1,454 1,471 1,488 1,505 1,522 1,539 1,556 1,573 1,590 1,607 1,624 1,641 1,658 1,675 1,692 1,709 1,726 1,743 1,760 1,777 1,794 1,811 1,828 1,845 1,862 1,010 1,030 1,050 1,070 1,090 1,110 1,130 1,150 1,170 1,190 1,210 1,230 1,250 1,270 1,290 1,310 1,330 1,350 1,370 1,390 1,410 1,430 1,450 1,470 1,490 1,510 1,530 1,550 1,570 1,590 1,610 1,630 1,650 1,670 1,690 1,710 1,730 1,750 1,770 1,790 1,810 1,830 1,850 1,870 1,890 1,910 1,930 1,950 1,970 1,990 2,010 2,030 2,050 2,070 2,090 2,110 2,130 2,150 2,170 2,190 1,136 1,159 1,181 1,204 1,226 1,249 1,271 1,294 1,316 1,339 1,361 1,384 1,406 1,429 1,451 1,474 1,496 1,519 1,541 1,564 1,586 1,609 1,631 1,654 1,676 1,699 1,721 1,744 1,766 1,789 1,811 1,834 1,856 1,879 1,901 1,924 1,946 1,969 1,991 2,014 2,036 2,059 2,081 2,104 2,126 2,149 2,171 2,194 2,216 2,239 2,261 2,284 2,306 2,329 2,351 2,374 2,396 2,419 2,441 2,464 193 197 201 205 208 212 216 220 224 228 231 235 239 243 247 251 254 258 262 266 270 273 277 281 285 289 293 296 300 304 308 312 316 319 323 327 331 335 339 342 346 350 354 358 361 365 369 373 377 381 384 388 392 396 400 404 407 411 415 419 859 876 893 910 927 944 961 978 995 1,012 1,029 1,046 1,063 1,080 1,097 1,114 1,131 1,148 1,165 1,182 1,199 1,216 1,233 1,250 1,267 1,284 1,301 1,318 1,335 1,352 1,369 1,386 1,403 1,420 1,437 1,454 1,471 1,488 1,505 1,522 1,539 1,556 1,573 1,590 1,607 1,624 1,641 1,658 1,675 1,692 1,709 1,726 1,743 1,760 1,777 1,794 1,811 1,828 1,845 1,862 1,010 1,030 1,050 1,070 1,090 1,110 1,130 1,150 1,170 1,190 1,210 1,230 1,250 1,270 1,290 1,310 1,330 1,350 1,370 1,390 1,410 1,430 1,450 1,470 1,490 1,510 1,530 1,550 1,570 1,590 1,610 1,630 1,650 1,670 1,690 1,710 1,730 1,750 1,770 1,790 1,810 1,830 1,850 1,870 1,890 1,910 1,930 1,950 1,970 1,990 2,010 2,030 2,050 2,070 2,090 2,110 2,130 2,150 2,170 2,190 1,136 1,159 1,181 1,204 1,226 1,249 1,271 1,294 1,316 1,339 1,361 1,384 1,406 1,429 1,451 1,474 1,496 1,519 1,541 1,564 1,586 1,609 1,631 1,654 1,676 1,699 1,721 1,744 1,766 1,789 1,811 1,834 1,856 1,879 1,901 1,924 1,946 1,969 1,991 2,014 2,036 2,059 2,081 2,104 2,126 2,149 2,171 2,194 2,216 2,239 2,261 2,284 2,306 2,329 2,351 2,374 2,396 2,419 2,441 2,464 (Continued on page 57) Need more information or forms? See page 96. - 56 - 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 5,500 5,550 5,600 5,650 5,700 5,750 5,800 5,850 5,900 5,950 6,000 6,050 6,100 6,150 6,200 6,250 6,300 6,350 6,400 6,450 6,500 6,550 6,600 6,650 6,700 6,750 6,800 6,850 6,900 6,950 7,000 7,050 7,100 7,150 7,200 7,250 7,300 7,350 7,400 7,450 7,500 7,550 7,600 7,650 7,700 7,750 7,800 7,850 7,900 7,950 8,000 8,050 8,100 8,150 8,200 8,250 8,300 8,350 8,400 8,450 5,550 5,600 5,650 5,700 5,750 5,800 5,850 5,900 5,950 6,000 6,050 6,100 6,150 6,200 6,250 6,300 6,350 6,400 6,450 6,500 6,550 6,600 6,650 6,700 6,750 6,800 6,850 6,900 6,950 7,000 7,050 7,100 7,150 7,200 7,250 7,300 7,350 7,400 7,450 7,500 7,550 7,600 7,650 7,700 7,750 7,800 7,850 7,900 7,950 8,000 8,050 8,100 8,150 8,200 8,250 8,300 8,350 8,400 8,450 8,500 423 426 430 434 438 442 446 449 453 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 452 449 445 441 437 433 430 426 422 418 414 410 407 403 399 395 391 387 384 380 1,879 1,896 1,913 1,930 1,947 1,964 1,981 1,998 2,015 2,032 2,049 2,066 2,083 2,100 2,117 2,134 2,151 2,168 2,185 2,202 2,219 2,236 2,253 2,270 2,287 2,304 2,321 2,338 2,355 2,372 2,389 2,406 2,423 2,440 2,457 2,474 2,491 2,508 2,525 2,542 2,559 2,576 2,593 2,610 2,627 2,644 2,661 2,678 2,695 2,712 2,729 2,746 2,763 2,780 2,797 2,814 2,831 2,848 2,865 2,882 2,210 2,230 2,250 2,270 2,290 2,310 2,330 2,350 2,370 2,390 2,410 2,430 2,450 2,470 2,490 2,510 2,530 2,550 2,570 2,590 2,610 2,630 2,650 2,670 2,690 2,710 2,730 2,750 2,770 2,790 2,810 2,830 2,850 2,870 2,890 2,910 2,930 2,950 2,970 2,990 3,010 3,030 3,050 3,070 3,090 3,110 3,130 3,150 3,170 3,190 3,210 3,230 3,250 3,270 3,290 3,310 3,330 3,350 3,370 3,390 2,486 2,509 2,531 2,554 2,576 2,599 2,621 2,644 2,666 2,689 2,711 2,734 2,756 2,779 2,801 2,824 2,846 2,869 2,891 2,914 2,936 2,959 2,981 3,004 3,026 3,049 3,071 3,094 3,116 3,139 3,161 3,184 3,206 3,229 3,251 3,274 3,296 3,319 3,341 3,364 3,386 3,409 3,431 3,454 3,476 3,499 3,521 3,544 3,566 3,589 3,611 3,634 3,656 3,679 3,701 3,724 3,746 3,769 3,791 3,814 423 426 430 434 438 442 446 449 453 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 1,879 1,896 1,913 1,930 1,947 1,964 1,981 1,998 2,015 2,032 2,049 2,066 2,083 2,100 2,117 2,134 2,151 2,168 2,185 2,202 2,219 2,236 2,253 2,270 2,287 2,304 2,321 2,338 2,355 2,372 2,389 2,406 2,423 2,440 2,457 2,474 2,491 2,508 2,525 2,542 2,559 2,576 2,593 2,610 2,627 2,644 2,661 2,678 2,695 2,712 2,729 2,746 2,763 2,780 2,797 2,814 2,831 2,848 2,865 2,882 2,210 2,230 2,250 2,270 2,290 2,310 2,330 2,350 2,370 2,390 2,410 2,430 2,450 2,470 2,490 2,510 2,530 2,550 2,570 2,590 2,610 2,630 2,650 2,670 2,690 2,710 2,730 2,750 2,770 2,790 2,810 2,830 2,850 2,870 2,890 2,910 2,930 2,950 2,970 2,990 3,010 3,030 3,050 3,070 3,090 3,110 3,130 3,150 3,170 3,190 3,210 3,230 3,250 3,270 3,290 3,310 3,330 3,350 3,370 3,390 2,486 2,509 2,531 2,554 2,576 2,599 2,621 2,644 2,666 2,689 2,711 2,734 2,756 2,779 2,801 2,824 2,846 2,869 2,891 2,914 2,936 2,959 2,981 3,004 3,026 3,049 3,071 3,094 3,116 3,139 3,161 3,184 3,206 3,229 3,251 3,274 3,296 3,319 3,341 3,364 3,386 3,409 3,431 3,454 3,476 3,499 3,521 3,544 3,566 3,589 3,611 3,634 3,656 3,679 3,701 3,724 3,746 3,769 3,791 3,814 (Continued on page 58) - 57 - Need more information or forms? See page 96. 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 8,500 8,550 8,600 8,650 8,700 8,750 8,800 8,850 8,900 8,950 9,000 9,050 9,100 9,150 9,200 9,250 9,300 9,350 9,400 9,450 9,500 9,550 9,600 9,650 9,700 9,750 9,800 9,850 9,900 9,950 10,000 10,050 10,100 10,150 10,200 10,250 10,300 10,350 10,400 10,450 10,500 10,550 10,600 10,650 10,700 10,750 10,800 10,850 10,900 10,950 11,000 11,050 11,100 11,150 11,200 11,250 11,300 11,350 11,400 11,450 8,550 8,600 8,650 8,700 8,750 8,800 8,850 8,900 8,950 9,000 9,050 9,100 9,150 9,200 9,250 9,300 9,350 9,400 9,450 9,500 9,550 9,600 9,650 9,700 9,750 9,800 9,850 9,900 9,950 10,000 10,050 10,100 10,150 10,200 10,250 10,300 10,350 10,400 10,450 10,500 10,550 10,600 10,650 10,700 10,750 10,800 10,850 10,900 10,950 11,000 11,050 11,100 11,150 11,200 11,250 11,300 11,350 11,400 11,450 11,500 376 372 368 365 361 357 353 349 345 342 338 334 330 326 322 319 315 311 307 303 299 296 292 288 284 280 277 273 269 265 261 257 254 250 246 242 238 234 231 227 223 219 215 212 208 204 200 196 192 189 185 181 177 173 169 166 162 158 154 150 2,899 2,916 2,933 2,950 2,967 2,984 3,001 3,018 3,035 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,410 3,430 3,450 3,470 3,490 3,510 3,530 3,550 3,570 3,590 3,610 3,630 3,650 3,670 3,690 3,710 3,730 3,750 3,770 3,790 3,810 3,830 3,850 3,870 3,890 3,910 3,930 3,950 3,970 3,990 4,010 4,030 4,050 4,070 4,090 4,110 4,130 4,150 4,170 4,190 4,210 4,230 4,250 4,270 4,290 4,310 4,330 4,350 4,370 4,390 4,410 4,430 4,450 4,470 4,490 4,510 4,530 4,550 4,570 4,590 3,836 3,859 3,881 3,904 3,926 3,949 3,971 3,994 4,016 4,039 4,061 4,084 4,106 4,129 4,151 4,174 4,196 4,219 4,241 4,264 4,286 4,309 4,331 4,354 4,376 4,399 4,421 4,444 4,466 4,489 4,511 4,534 4,556 4,579 4,601 4,624 4,646 4,669 4,691 4,714 4,736 4,759 4,781 4,804 4,826 4,849 4,871 4,894 4,916 4,939 4,961 4,984 5,006 5,029 5,051 5,074 5,096 5,119 5,141 5,164 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 2,899 2,916 2,933 2,950 2,967 2,984 3,001 3,018 3,035 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,410 3,430 3,450 3,470 3,490 3,510 3,530 3,550 3,570 3,590 3,610 3,630 3,650 3,670 3,690 3,710 3,730 3,750 3,770 3,790 3,810 3,830 3,850 3,870 3,890 3,910 3,930 3,950 3,970 3,990 4,010 4,030 4,050 4,070 4,090 4,110 4,130 4,150 4,170 4,190 4,210 4,230 4,250 4,270 4,290 4,310 4,330 4,350 4,370 4,390 4,410 4,430 4,450 4,470 4,490 4,510 4,530 4,550 4,570 4,590 3,836 3,859 3,881 3,904 3,926 3,949 3,971 3,994 4,016 4,039 4,061 4,084 4,106 4,129 4,151 4,174 4,196 4,219 4,241 4,264 4,286 4,309 4,331 4,354 4,376 4,399 4,421 4,444 4,466 4,489 4,511 4,534 4,556 4,579 4,601 4,624 4,646 4,669 4,691 4,714 4,736 4,759 4,781 4,804 4,826 4,849 4,871 4,894 4,916 4,939 4,961 4,984 5,006 5,029 5,051 5,074 5,096 5,119 5,141 5,164 (Continued on page 59) Need more information or forms? See page 96. - 58 - 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 11,500 11,550 11,600 11,650 11,700 11,750 11,800 11,850 11,900 11,950 12,000 12,050 12,100 12,150 12,200 12,250 12,300 12,350 12,400 12,450 12,500 12,550 12,600 12,650 12,700 12,750 12,800 12,850 12,900 12,950 13,000 13,050 13,100 13,150 13,200 13,250 13,300 13,350 13,400 13,450 13,500 13,550 13,600 13,650 13,700 13,750 13,800 13,850 13,900 13,950 14,000 14,050 14,100 14,150 14,200 11,550 11,600 11,650 11,700 11,750 11,800 11,850 11,900 11,950 12,000 12,050 12,100 12,150 12,200 12,250 12,300 12,350 12,400 12,450 12,500 12,550 12,600 12,650 12,700 12,750 12,800 12,850 12,900 12,950 13,000 13,050 13,100 13,150 13,200 13,250 13,300 13,350 13,400 13,450 13,500 13,550 13,600 13,650 13,700 13,750 13,800 13,850 13,900 13,950 14,000 14,050 14,100 14,150 14,200 14,250 146 143 139 135 131 127 124 120 116 112 108 104 101 97 93 89 85 81 78 74 70 66 62 59 55 51 47 43 39 36 32 28 24 20 16 13 9 5 * 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 4,610 4,630 4,650 4,670 4,690 4,710 4,730 4,750 4,770 4,790 4,810 4,830 4,850 4,870 4,890 4,910 4,930 4,950 4,970 4,990 5,010 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,186 5,209 5,231 5,254 5,276 5,299 5,321 5,344 5,366 5,389 5,411 5,434 5,456 5,479 5,501 5,524 5,546 5,569 5,591 5,614 5,636 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 457 452 449 445 441 437 433 430 426 422 418 414 410 407 403 399 395 391 387 384 380 376 372 368 365 361 357 353 349 345 342 338 334 330 326 322 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 4,610 4,630 4,650 4,670 4,690 4,710 4,730 4,750 4,770 4,790 4,810 4,830 4,850 4,870 4,890 4,910 4,930 4,950 4,970 4,990 5,010 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,186 5,209 5,231 5,254 5,276 5,299 5,321 5,344 5,366 5,389 5,411 5,434 5,456 5,479 5,501 5,524 5,546 5,569 5,591 5,614 5,636 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 *If the amount you are looking up from the worksheet is at least $13,400 but less than $13,440, your credit is $2. Otherwise, you cannot take the credit. (Continued on page 60) - 59 - Need more information or forms? See page 96. 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 14,250 14,300 14,350 14,400 14,450 14,500 14,550 14,600 14,650 14,700 14,750 14,800 14,850 14,900 14,950 15,000 15,050 15,100 15,150 15,200 15,250 15,300 15,350 15,400 15,450 15,500 15,550 15,600 15,650 15,700 15,750 15,800 15,850 15,900 15,950 16,000 16,050 16,100 16,150 16,200 16,250 16,300 16,350 16,400 16,450 16,500 16,550 16,600 16,650 16,700 16,750 16,800 16,850 16,900 16,950 17,000 17,050 17,100 17,150 17,200 14,300 14,350 14,400 14,450 14,500 14,550 14,600 14,650 14,700 14,750 14,800 14,850 14,900 14,950 15,000 15,050 15,100 15,150 15,200 15,250 15,300 15,350 15,400 15,450 15,500 15,550 15,600 15,650 15,700 15,750 15,800 15,850 15,900 15,950 16,000 16,050 16,100 16,150 16,200 16,250 16,300 16,350 16,400 16,450 16,500 16,550 16,600 16,650 16,700 16,750 16,800 16,850 16,900 16,950 17,000 17,050 17,100 17,150 17,200 17,250 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,034 3,026 3,018 3,010 3,002 2,994 2,986 2,978 2,970 2,962 2,954 2,946 2,938 2,930 2,922 2,914 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,016 5,006 4,995 4,985 4,974 4,964 4,953 4,943 4,932 4,922 4,911 4,901 4,890 4,880 4,869 4,858 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,645 5,634 5,624 5,613 5,603 5,592 5,582 5,571 5,561 5,550 5,540 5,529 5,519 5,508 5,497 5,487 319 315 311 307 303 299 296 292 288 284 280 277 273 269 265 261 257 254 250 246 242 238 234 231 227 223 219 215 212 208 204 200 196 192 189 185 181 177 173 169 166 162 158 154 150 146 143 139 135 131 127 124 120 116 112 108 104 101 97 93 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 (Continued on page 61) Need more information or forms? See page 96. - 60 - 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 17,250 17,300 17,350 17,400 17,450 17,500 17,550 17,600 17,650 17,700 17,750 17,800 17,850 17,900 17,950 18,000 18,050 18,100 18,150 18,200 18,250 18,300 18,350 18,400 18,450 18,500 18,550 18,600 18,650 18,700 18,750 18,800 18,850 18,900 18,950 19,000 19,050 19,100 19,150 19,200 19,250 19,300 19,350 19,400 19,450 19,500 19,550 19,600 19,650 19,700 19,750 19,800 19,850 19,900 19,950 17,300 17,350 17,400 17,450 17,500 17,550 17,600 17,650 17,700 17,750 17,800 17,850 17,900 17,950 18,000 18,050 18,100 18,150 18,200 18,250 18,300 18,350 18,400 18,450 18,500 18,550 18,600 18,650 18,700 18,750 18,800 18,850 18,900 18,950 19,000 19,050 19,100 19,150 19,200 19,250 19,300 19,350 19,400 19,450 19,500 19,550 19,600 19,650 19,700 19,750 19,800 19,850 19,900 19,950 20,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,906 2,898 2,890 2,882 2,874 2,866 2,858 2,850 2,842 2,834 2,826 2,818 2,810 2,803 2,795 2,787 2,779 2,771 2,763 2,755 2,747 2,739 2,731 2,723 2,715 2,707 2,699 2,691 2,683 2,675 2,667 2,659 2,651 2,643 2,635 2,627 2,619 2,611 2,603 2,595 2,587 2,579 2,571 2,563 2,555 2,547 2,539 2,531 2,523 2,515 2,507 2,499 2,491 2,483 2,475 4,848 4,837 4,827 4,816 4,806 4,795 4,785 4,774 4,764 4,753 4,743 4,732 4,722 4,711 4,701 4,690 4,679 4,669 4,658 4,648 4,637 4,627 4,616 4,606 4,595 4,585 4,574 4,564 4,553 4,543 4,532 4,522 4,511 4,500 4,490 4,479 4,469 4,458 4,448 4,437 4,427 4,416 4,406 4,395 4,385 4,374 4,364 4,353 4,342 4,332 4,321 4,311 4,300 4,290 4,279 5,476 5,466 5,455 5,445 5,434 5,424 5,413 5,403 5,392 5,382 5,371 5,361 5,350 5,340 5,329 5,318 5,308 5,297 5,287 5,276 5,266 5,255 5,245 5,234 5,224 5,213 5,203 5,192 5,182 5,171 5,161 5,150 5,139 5,129 5,118 5,108 5,097 5,087 5,076 5,066 5,055 5,045 5,034 5,024 5,013 5,003 4,992 4,982 4,971 4,960 4,950 4,939 4,929 4,918 4,908 89 85 81 78 74 70 66 62 59 55 51 47 43 39 36 32 28 24 20 16 13 9 5 * 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 *If the amount you are looking up from the worksheet is at least $18,400 but less than $18,440, your credit is $2. Otherwise, you cannot take the credit. (Continued on page 62) - 61 - Need more information or forms? See page 96. 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 20,000 20,050 20,100 20,150 20,200 20,250 20,300 20,350 20,400 20,450 20,500 20,550 20,600 20,650 20,700 20,750 20,800 20,850 20,900 20,950 21,000 21,050 21,100 21,150 21,200 21,250 21,300 21,350 21,400 21,450 21,500 21,550 21,600 21,650 21,700 21,750 21,800 21,850 21,900 21,950 22,000 22,050 22,100 22,150 22,200 22,250 22,300 22,350 22,400 22,450 22,500 22,550 22,600 22,650 22,700 22,750 22,800 22,850 22,900 22,950 20,050 20,100 20,150 20,200 20,250 20,300 20,350 20,400 20,450 20,500 20,550 20,600 20,650 20,700 20,750 20,800 20,850 20,900 20,950 21,000 21,050 21,100 21,150 21,200 21,250 21,300 21,350 21,400 21,450 21,500 21,550 21,600 21,650 21,700 21,750 21,800 21,850 21,900 21,950 22,000 22,050 22,100 22,150 22,200 22,250 22,300 22,350 22,400 22,450 22,500 22,550 22,600 22,650 22,700 22,750 22,800 22,850 22,900 22,950 23,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,467 2,459 2,451 2,443 2,435 2,427 2,419 2,411 2,403 2,395 2,387 2,379 2,371 2,363 2,355 2,347 2,339 2,331 2,323 2,315 2,307 2,299 2,291 2,283 2,275 2,267 2,259 2,251 2,243 2,235 2,227 2,219 2,211 2,203 2,195 2,187 2,179 2,171 2,163 2,155 2,147 2,139 2,131 2,123 2,115 2,107 2,099 2,091 2,083 2,075 2,067 2,059 2,051 2,043 2,035 2,027 2,019 2,011 2,004 1,996 4,269 4,258 4,248 4,237 4,227 4,216 4,206 4,195 4,185 4,174 4,163 4,153 4,142 4,132 4,121 4,111 4,100 4,090 4,079 4,069 4,058 4,048 4,037 4,027 4,016 4,006 3,995 3,984 3,974 3,963 3,953 3,942 3,932 3,921 3,911 3,900 3,890 3,879 3,869 3,858 3,848 3,837 3,827 3,816 3,805 3,795 3,784 3,774 3,763 3,753 3,742 3,732 3,721 3,711 3,700 3,690 3,679 3,669 3,658 3,648 4,897 4,887 4,876 4,866 4,855 4,845 4,834 4,824 4,813 4,803 4,792 4,781 4,771 4,760 4,750 4,739 4,729 4,718 4,708 4,697 4,687 4,676 4,666 4,655 4,645 4,634 4,624 4,613 4,602 4,592 4,581 4,571 4,560 4,550 4,539 4,529 4,518 4,508 4,497 4,487 4,476 4,466 4,455 4,444 4,434 4,423 4,413 4,402 4,392 4,381 4,371 4,360 4,350 4,339 4,329 4,318 4,308 4,297 4,287 4,276 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,043 3,034 3,026 3,018 3,010 3,002 2,994 2,986 2,978 2,970 2,962 2,954 2,946 2,938 2,930 2,922 2,914 2,906 2,898 2,890 2,882 2,874 2,866 2,858 2,850 2,842 2,834 2,826 2,818 2,810 2,803 2,795 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,028 5,016 5,006 4,995 4,985 4,974 4,964 4,953 4,943 4,932 4,922 4,911 4,901 4,890 4,880 4,869 4,858 4,848 4,837 4,827 4,816 4,806 4,795 4,785 4,774 4,764 4,753 4,743 4,732 4,722 4,711 4,701 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,657 5,645 5,634 5,624 5,613 5,603 5,592 5,582 5,571 5,561 5,550 5,540 5,529 5,519 5,508 5,497 5,487 5,476 5,466 5,455 5,445 5,434 5,424 5,413 5,403 5,392 5,382 5,371 5,361 5,350 5,340 5,329 (Continued on page 63) Need more information or forms? See page 96. - 62 - 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 23,000 23,050 23,100 23,150 23,200 23,250 23,300 23,350 23,400 23,450 23,500 23,550 23,600 23,650 23,700 23,750 23,800 23,850 23,900 23,950 24,000 24,050 24,100 24,150 24,200 24,250 24,300 24,350 24,400 24,450 24,500 24,550 24,600 24,650 24,700 24,750 24,800 24,850 24,900 24,950 25,000 25,050 25,100 25,150 25,200 25,250 25,300 25,350 25,400 25,450 25,500 25,550 25,600 25,650 25,700 25,750 25,800 25,850 25,900 25,950 23,050 23,100 23,150 23,200 23,250 23,300 23,350 23,400 23,450 23,500 23,550 23,600 23,650 23,700 23,750 23,800 23,850 23,900 23,950 24,000 24,050 24,100 24,150 24,200 24,250 24,300 24,350 24,400 24,450 24,500 24,550 24,600 24,650 24,700 24,750 24,800 24,850 24,900 24,950 25,000 25,050 25,100 25,150 25,200 25,250 25,300 25,350 25,400 25,450 25,500 25,550 25,600 25,650 25,700 25,750 25,800 25,850 25,900 25,950 26,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,988 1,980 1,972 1,964 1,956 1,948 1,940 1,932 1,924 1,916 1,908 1,900 1,892 1,884 1,876 1,868 1,860 1,852 1,844 1,836 1,828 1,820 1,812 1,804 1,796 1,788 1,780 1,772 1,764 1,756 1,748 1,740 1,732 1,724 1,716 1,708 1,700 1,692 1,684 1,676 1,668 1,660 1,652 1,644 1,636 1,628 1,620 1,612 1,604 1,596 1,588 1,580 1,572 1,564 1,556 1,548 1,540 1,532 1,524 1,516 3,637 3,626 3,616 3,605 3,595 3,584 3,574 3,563 3,553 3,542 3,532 3,521 3,511 3,500 3,490 3,479 3,469 3,458 3,447 3,437 3,426 3,416 3,405 3,395 3,384 3,374 3,363 3,353 3,342 3,332 3,321 3,311 3,300 3,289 3,279 3,268 3,258 3,247 3,237 3,226 3,216 3,205 3,195 3,184 3,174 3,163 3,153 3,142 3,132 3,121 3,110 3,100 3,089 3,079 3,068 3,058 3,047 3,037 3,026 3,016 4,265 4,255 4,244 4,234 4,223 4,213 4,202 4,192 4,181 4,171 4,160 4,150 4,139 4,129 4,118 4,108 4,097 4,086 4,076 4,065 4,055 4,044 4,034 4,023 4,013 4,002 3,992 3,981 3,971 3,960 3,950 3,939 3,929 3,918 3,907 3,897 3,886 3,876 3,865 3,855 3,844 3,834 3,823 3,813 3,802 3,792 3,781 3,771 3,760 3,750 3,739 3,728 3,718 3,707 3,697 3,686 3,676 3,665 3,655 3,644 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,787 2,779 2,771 2,763 2,755 2,747 2,739 2,731 2,723 2,715 2,707 2,699 2,691 2,683 2,675 2,667 2,659 2,651 2,643 2,635 2,627 2,619 2,611 2,603 2,595 2,587 2,579 2,571 2,563 2,555 2,547 2,539 2,531 2,523 2,515 2,507 2,499 2,491 2,483 2,475 2,467 2,459 2,451 2,443 2,435 2,427 2,419 2,411 2,403 2,395 2,387 2,379 2,371 2,363 2,355 2,347 2,339 2,331 2,323 2,315 4,690 4,679 4,669 4,658 4,648 4,637 4,627 4,616 4,606 4,595 4,585 4,574 4,564 4,553 4,543 4,532 4,522 4,511 4,500 4,490 4,479 4,469 4,458 4,448 4,437 4,427 4,416 4,406 4,395 4,385 4,374 4,364 4,353 4,342 4,332 4,321 4,311 4,300 4,290 4,279 4,269 4,258 4,248 4,237 4,227 4,216 4,206 4,195 4,185 4,174 4,163 4,153 4,142 4,132 4,121 4,111 4,100 4,090 4,079 4,069 5,318 5,308 5,297 5,287 5,276 5,266 5,255 5,245 5,234 5,224 5,213 5,203 5,192 5,182 5,171 5,161 5,150 5,139 5,129 5,118 5,108 5,097 5,087 5,076 5,066 5,055 5,045 5,034 5,024 5,013 5,003 4,992 4,982 4,971 4,960 4,950 4,939 4,929 4,918 4,908 4,897 4,887 4,876 4,866 4,855 4,845 4,834 4,824 4,813 4,803 4,792 4,781 4,771 4,760 4,750 4,739 4,729 4,718 4,708 4,697 (Continued on page 64) - 63 - Need more information or forms? See page 96. 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 26,000 26,050 26,100 26,150 26,200 26,250 26,300 26,350 26,400 26,450 26,500 26,550 26,600 26,650 26,700 26,750 26,800 26,850 26,900 26,950 27,000 27,050 27,100 27,150 27,200 27,250 27,300 27,350 27,400 27,450 27,500 27,550 27,600 27,650 27,700 27,750 27,800 27,850 27,900 27,950 28,000 28,050 28,100 28,150 28,200 28,250 28,300 28,350 28,400 28,450 28,500 28,550 28,600 28,650 28,700 28,750 28,800 28,850 28,900 28,950 26,050 26,100 26,150 26,200 26,250 26,300 26,350 26,400 26,450 26,500 26,550 26,600 26,650 26,700 26,750 26,800 26,850 26,900 26,950 27,000 27,050 27,100 27,150 27,200 27,250 27,300 27,350 27,400 27,450 27,500 27,550 27,600 27,650 27,700 27,750 27,800 27,850 27,900 27,950 28,000 28,050 28,100 28,150 28,200 28,250 28,300 28,350 28,400 28,450 28,500 28,550 28,600 28,650 28,700 28,750 28,800 28,850 28,900 28,950 29,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,508 1,500 1,492 1,484 1,476 1,468 1,460 1,452 1,444 1,436 1,428 1,420 1,412 1,404 1,396 1,388 1,380 1,372 1,364 1,356 1,348 1,340 1,332 1,324 1,316 1,308 1,300 1,292 1,284 1,276 1,268 1,260 1,252 1,244 1,236 1,228 1,220 1,212 1,205 1,197 1,189 1,181 1,173 1,165 1,157 1,149 1,141 1,133 1,125 1,117 1,109 1,101 1,093 1,085 1,077 1,069 1,061 1,053 1,045 1,037 3,005 2,995 2,984 2,974 2,963 2,953 2,942 2,931 2,921 2,910 2,900 2,889 2,879 2,868 2,858 2,847 2,837 2,826 2,816 2,805 2,795 2,784 2,774 2,763 2,752 2,742 2,731 2,721 2,710 2,700 2,689 2,679 2,668 2,658 2,647 2,637 2,626 2,616 2,605 2,595 2,584 2,573 2,563 2,552 2,542 2,531 2,521 2,510 2,500 2,489 2,479 2,468 2,458 2,447 2,437 2,426 2,416 2,405 2,394 2,384 3,634 3,623 3,613 3,602 3,592 3,581 3,571 3,560 3,549 3,539 3,528 3,518 3,507 3,497 3,486 3,476 3,465 3,455 3,444 3,434 3,423 3,413 3,402 3,391 3,381 3,370 3,360 3,349 3,339 3,328 3,318 3,307 3,297 3,286 3,276 3,265 3,255 3,244 3,234 3,223 3,212 3,202 3,191 3,181 3,170 3,160 3,149 3,139 3,128 3,118 3,107 3,097 3,086 3,076 3,065 3,055 3,044 3,033 3,023 3,012 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,307 2,299 2,291 2,283 2,275 2,267 2,259 2,251 2,243 2,235 2,227 2,219 2,211 2,203 2,195 2,187 2,179 2,171 2,163 2,155 2,147 2,139 2,131 2,123 2,115 2,107 2,099 2,091 2,083 2,075 2,067 2,059 2,051 2,043 2,035 2,027 2,019 2,011 2,004 1,996 1,988 1,980 1,972 1,964 1,956 1,948 1,940 1,932 1,924 1,916 1,908 1,900 1,892 1,884 1,876 1,868 1,860 1,852 1,844 1,836 4,058 4,048 4,037 4,027 4,016 4,006 3,995 3,984 3,974 3,963 3,953 3,942 3,932 3,921 3,911 3,900 3,890 3,879 3,869 3,858 3,848 3,837 3,827 3,816 3,805 3,795 3,784 3,774 3,763 3,753 3,742 3,732 3,721 3,711 3,700 3,690 3,679 3,669 3,658 3,648 3,637 3,626 3,616 3,605 3,595 3,584 3,574 3,563 3,553 3,542 3,532 3,521 3,511 3,500 3,490 3,479 3,469 3,458 3,447 3,437 4,687 4,676 4,666 4,655 4,645 4,634 4,624 4,613 4,602 4,592 4,581 4,571 4,560 4,550 4,539 4,529 4,518 4,508 4,497 4,487 4,476 4,466 4,455 4,444 4,434 4,423 4,413 4,402 4,392 4,381 4,371 4,360 4,350 4,339 4,329 4,318 4,308 4,297 4,287 4,276 4,265 4,255 4,244 4,234 4,223 4,213 4,202 4,192 4,181 4,171 4,160 4,150 4,139 4,129 4,118 4,108 4,097 4,086 4,076 4,065 (Continued on page 65) Need more information or forms? See page 96. - 64 - 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 29,000 29,050 29,100 29,150 29,200 29,250 29,300 29,350 29,400 29,450 29,500 29,550 29,600 29,650 29,700 29,750 29,800 29,850 29,900 29,950 30,000 30,050 30,100 30,150 30,200 30,250 30,300 30,350 30,400 30,450 30,500 30,550 30,600 30,650 30,700 30,750 30,800 30,850 30,900 30,950 31,000 31,050 31,100 31,150 31,200 31,250 31,300 31,350 31,400 31,450 31,500 31,550 31,600 31,650 31,700 31,750 31,800 31,850 31,900 31,950 29,050 29,100 29,150 29,200 29,250 29,300 29,350 29,400 29,450 29,500 29,550 29,600 29,650 29,700 29,750 29,800 29,850 29,900 29,950 30,000 30,050 30,100 30,150 30,200 30,250 30,300 30,350 30,400 30,450 30,500 30,550 30,600 30,650 30,700 30,750 30,800 30,850 30,900 30,950 31,000 31,050 31,100 31,150 31,200 31,250 31,300 31,350 31,400 31,450 31,500 31,550 31,600 31,650 31,700 31,750 31,800 31,850 31,900 31,950 32,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,029 1,021 1,013 1,005 997 989 981 973 965 957 949 941 933 925 917 909 901 893 885 877 869 861 853 845 837 829 821 813 805 797 789 781 773 765 757 749 741 733 725 717 709 701 693 685 677 669 661 653 645 637 629 621 613 605 597 589 581 573 565 557 2,373 2,363 2,352 2,342 2,331 2,321 2,310 2,300 2,289 2,279 2,268 2,258 2,247 2,236 2,226 2,215 2,205 2,194 2,184 2,173 2,163 2,152 2,142 2,131 2,121 2,110 2,100 2,089 2,079 2,068 2,057 2,047 2,036 2,026 2,015 2,005 1,994 1,984 1,973 1,963 1,952 1,942 1,931 1,921 1,910 1,900 1,889 1,878 1,868 1,857 1,847 1,836 1,826 1,815 1,805 1,794 1,784 1,773 1,763 1,752 3,002 2,991 2,981 2,970 2,960 2,949 2,939 2,928 2,918 2,907 2,897 2,886 2,876 2,865 2,854 2,844 2,833 2,823 2,812 2,802 2,791 2,781 2,770 2,760 2,749 2,739 2,728 2,718 2,707 2,697 2,686 2,675 2,665 2,654 2,644 2,633 2,623 2,612 2,602 2,591 2,581 2,570 2,560 2,549 2,539 2,528 2,518 2,507 2,496 2,486 2,475 2,465 2,454 2,444 2,433 2,423 2,412 2,402 2,391 2,381 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,828 1,820 1,812 1,804 1,796 1,788 1,780 1,772 1,764 1,756 1,748 1,740 1,732 1,724 1,716 1,708 1,700 1,692 1,684 1,676 1,668 1,660 1,652 1,644 1,636 1,628 1,620 1,612 1,604 1,596 1,588 1,580 1,572 1,564 1,556 1,548 1,540 1,532 1,524 1,516 1,508 1,500 1,492 1,484 1,476 1,468 1,460 1,452 1,444 1,436 1,428 1,420 1,412 1,404 1,396 1,388 1,380 1,372 1,364 1,356 3,426 3,416 3,405 3,395 3,384 3,374 3,363 3,353 3,342 3,332 3,321 3,311 3,300 3,289 3,279 3,268 3,258 3,247 3,237 3,226 3,216 3,205 3,195 3,184 3,174 3,163 3,153 3,142 3,132 3,121 3,110 3,100 3,089 3,079 3,068 3,058 3,047 3,037 3,026 3,016 3,005 2,995 2,984 2,974 2,963 2,953 2,942 2,931 2,921 2,910 2,900 2,889 2,879 2,868 2,858 2,847 2,837 2,826 2,816 2,805 4,055 4,044 4,034 4,023 4,013 4,002 3,992 3,981 3,971 3,960 3,950 3,939 3,929 3,918 3,907 3,897 3,886 3,876 3,865 3,855 3,844 3,834 3,823 3,813 3,802 3,792 3,781 3,771 3,760 3,750 3,739 3,728 3,718 3,707 3,697 3,686 3,676 3,665 3,655 3,644 3,634 3,623 3,613 3,602 3,592 3,581 3,571 3,560 3,549 3,539 3,528 3,518 3,507 3,497 3,486 3,476 3,465 3,455 3,444 3,434 (Continued on page 66) - 65 - Need more information or forms? See page 96. 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 32,000 32,050 32,100 32,150 32,200 32,250 32,300 32,350 32,400 32,450 32,500 32,550 32,600 32,650 32,700 32,750 32,800 32,850 32,900 32,950 33,000 33,050 33,100 33,150 33,200 33,250 33,300 33,350 33,400 33,450 33,500 33,550 33,600 33,650 33,700 33,750 33,800 33,850 33,900 33,950 34,000 34,050 34,100 34,150 34,200 34,250 34,300 34,350 34,400 34,450 34,500 34,550 34,600 34,650 34,700 34,750 34,800 34,850 34,900 34,950 32,050 32,100 32,150 32,200 32,250 32,300 32,350 32,400 32,450 32,500 32,550 32,600 32,650 32,700 32,750 32,800 32,850 32,900 32,950 33,000 33,050 33,100 33,150 33,200 33,250 33,300 33,350 33,400 33,450 33,500 33,550 33,600 33,650 33,700 33,750 33,800 33,850 33,900 33,950 34,000 34,050 34,100 34,150 34,200 34,250 34,300 34,350 34,400 34,450 34,500 34,550 34,600 34,650 34,700 34,750 34,800 34,850 34,900 34,950 35,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 549 541 533 525 517 509 501 493 485 477 469 461 453 445 437 429 421 413 406 398 390 382 374 366 358 350 342 334 326 318 310 302 294 286 278 270 262 254 246 238 230 222 214 206 198 190 182 174 166 158 150 142 134 126 118 110 102 94 86 78 1,742 1,731 1,721 1,710 1,699 1,689 1,678 1,668 1,657 1,647 1,636 1,626 1,615 1,605 1,594 1,584 1,573 1,563 1,552 1,542 1,531 1,520 1,510 1,499 1,489 1,478 1,468 1,457 1,447 1,436 1,426 1,415 1,405 1,394 1,384 1,373 1,363 1,352 1,341 1,331 1,320 1,310 1,299 1,289 1,278 1,268 1,257 1,247 1,236 1,226 1,215 1,205 1,194 1,183 1,173 1,162 1,152 1,141 1,131 1,120 2,370 2,360 2,349 2,338 2,328 2,317 2,307 2,296 2,286 2,275 2,265 2,254 2,244 2,233 2,223 2,212 2,202 2,191 2,181 2,170 2,159 2,149 2,138 2,128 2,117 2,107 2,096 2,086 2,075 2,065 2,054 2,044 2,033 2,023 2,012 2,002 1,991 1,980 1,970 1,959 1,949 1,938 1,928 1,917 1,907 1,896 1,886 1,875 1,865 1,854 1,844 1,833 1,823 1,812 1,801 1,791 1,780 1,770 1,759 1,749 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,348 1,340 1,332 1,324 1,316 1,308 1,300 1,292 1,284 1,276 1,268 1,260 1,252 1,244 1,236 1,228 1,220 1,212 1,205 1,197 1,189 1,181 1,173 1,165 1,157 1,149 1,141 1,133 1,125 1,117 1,109 1,101 1,093 1,085 1,077 1,069 1,061 1,053 1,045 1,037 1,029 1,021 1,013 1,005 997 989 981 973 965 957 949 941 933 925 917 909 901 893 885 877 2,795 2,784 2,774 2,763 2,752 2,742 2,731 2,721 2,710 2,700 2,689 2,679 2,668 2,658 2,647 2,637 2,626 2,616 2,605 2,595 2,584 2,573 2,563 2,552 2,542 2,531 2,521 2,510 2,500 2,489 2,479 2,468 2,458 2,447 2,437 2,426 2,416 2,405 2,394 2,384 2,373 2,363 2,352 2,342 2,331 2,321 2,310 2,300 2,289 2,279 2,268 2,258 2,247 2,236 2,226 2,215 2,205 2,194 2,184 2,173 3,423 3,413 3,402 3,391 3,381 3,370 3,360 3,349 3,339 3,328 3,318 3,307 3,297 3,286 3,276 3,265 3,255 3,244 3,234 3,223 3,212 3,202 3,191 3,181 3,170 3,160 3,149 3,139 3,128 3,118 3,107 3,097 3,086 3,076 3,065 3,055 3,044 3,033 3,023 3,012 3,002 2,991 2,981 2,970 2,960 2,949 2,939 2,928 2,918 2,907 2,897 2,886 2,876 2,865 2,854 2,844 2,833 2,823 2,812 2,802 (Continued on page 67) Need more information or forms? See page 96. - 66 - 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 35,000 35,050 35,100 35,150 35,200 35,250 35,300 35,350 35,400 35,450 35,500 35,550 35,600 35,650 35,700 35,750 35,800 35,850 35,900 35,950 36,000 36,050 36,100 36,150 36,200 36,250 36,300 36,350 36,400 36,450 36,500 36,550 36,600 36,650 36,700 36,750 36,800 36,850 36,900 36,950 37,000 37,050 37,100 37,150 37,200 37,250 37,300 37,350 37,400 37,450 37,500 37,550 37,600 37,650 37,700 35,050 35,100 35,150 35,200 35,250 35,300 35,350 35,400 35,450 35,500 35,550 35,600 35,650 35,700 35,750 35,800 35,850 35,900 35,950 36,000 36,050 36,100 36,150 36,200 36,250 36,300 36,350 36,400 36,450 36,500 36,550 36,600 36,650 36,700 36,750 36,800 36,850 36,900 36,950 37,000 37,050 37,100 37,150 37,200 37,250 37,300 37,350 37,400 37,450 37,500 37,550 37,600 37,650 37,700 37,750 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 70 62 54 46 38 30 22 14 6 * 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,110 1,099 1,089 1,078 1,068 1,057 1,047 1,036 1,026 1,015 1,004 994 983 973 962 952 941 931 920 910 899 889 878 868 857 847 836 825 815 804 794 783 773 762 752 741 731 720 710 699 689 678 668 657 646 636 625 615 604 594 583 573 562 552 541 1,738 1,728 1,717 1,707 1,696 1,686 1,675 1,665 1,654 1,644 1,633 1,622 1,612 1,601 1,591 1,580 1,570 1,559 1,549 1,538 1,528 1,517 1,507 1,496 1,486 1,475 1,465 1,454 1,443 1,433 1,422 1,412 1,401 1,391 1,380 1,370 1,359 1,349 1,338 1,328 1,317 1,307 1,296 1,285 1,275 1,264 1,254 1,243 1,233 1,222 1,212 1,201 1,191 1,180 1,170 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 869 861 853 845 837 829 821 813 805 797 789 781 773 765 757 749 741 733 725 717 709 701 693 685 677 669 661 653 645 637 629 621 613 605 597 589 581 573 565 557 549 541 533 525 517 509 501 493 485 477 469 461 453 445 437 2,163 2,152 2,142 2,131 2,121 2,110 2,100 2,089 2,079 2,068 2,057 2,047 2,036 2,026 2,015 2,005 1,994 1,984 1,973 1,963 1,952 1,942 1,931 1,921 1,910 1,900 1,889 1,878 1,868 1,857 1,847 1,836 1,826 1,815 1,805 1,794 1,784 1,773 1,763 1,752 1,742 1,731 1,721 1,710 1,699 1,689 1,678 1,668 1,657 1,647 1,636 1,626 1,615 1,605 1,594 2,791 2,781 2,770 2,760 2,749 2,739 2,728 2,718 2,707 2,697 2,686 2,675 2,665 2,654 2,644 2,633 2,623 2,612 2,602 2,591 2,581 2,570 2,560 2,549 2,539 2,528 2,518 2,507 2,496 2,486 2,475 2,465 2,454 2,444 2,433 2,423 2,412 2,402 2,391 2,381 2,370 2,360 2,349 2,338 2,328 2,317 2,307 2,296 2,286 2,275 2,265 2,254 2,244 2,233 2,223 *If the amount you are looking up from the worksheet is at least $35,450 but less than $35,463, your credit is $1. Otherwise, you cannot take the credit. (Continued on page 68) - 67 - Need more information or forms? See page 96. 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 37,750 37,800 37,850 37,900 37,950 38,000 38,050 38,100 38,150 38,200 38,250 38,300 38,350 38,400 38,450 38,500 38,550 38,600 38,650 38,700 38,750 38,800 38,850 38,900 38,950 39,000 39,050 39,100 39,150 39,200 39,250 39,300 39,350 39,400 39,450 39,500 39,550 39,600 39,650 39,700 39,750 39,800 39,850 39,900 39,950 40,000 40,050 40,100 40,150 40,200 40,250 40,300 40,350 40,400 40,450 37,800 37,850 37,900 37,950 38,000 38,050 38,100 38,150 38,200 38,250 38,300 38,350 38,400 38,450 38,500 38,550 38,600 38,650 38,700 38,750 38,800 38,850 38,900 38,950 39,000 39,050 39,100 39,150 39,200 39,250 39,300 39,350 39,400 39,450 39,500 39,550 39,600 39,650 39,700 39,750 39,800 39,850 39,900 39,950 40,000 40,050 40,100 40,150 40,200 40,250 40,300 40,350 40,400 40,450 40,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 531 520 510 499 489 478 467 457 446 436 425 415 404 394 383 373 362 352 341 331 320 310 299 288 278 267 257 246 236 225 215 204 194 183 173 162 152 141 130 120 109 99 88 78 67 57 46 36 25 15 * 0 0 0 0 1,159 1,149 1,138 1,128 1,117 1,106 1,096 1,085 1,075 1,064 1,054 1,043 1,033 1,022 1,012 1,001 991 980 970 959 949 938 927 917 906 896 885 875 864 854 843 833 822 812 801 791 780 770 759 748 738 727 717 706 696 685 675 664 654 643 633 622 612 601 591 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 429 421 413 406 398 390 382 374 366 358 350 342 334 326 318 310 302 294 286 278 270 262 254 246 238 230 222 214 206 198 190 182 174 166 158 150 142 134 126 118 110 102 94 86 78 70 62 54 46 38 30 22 14 6 ** 1,584 1,573 1,563 1,552 1,542 1,531 1,520 1,510 1,499 1,489 1,478 1,468 1,457 1,447 1,436 1,426 1,415 1,405 1,394 1,384 1,373 1,363 1,352 1,341 1,331 1,320 1,310 1,299 1,289 1,278 1,268 1,257 1,247 1,236 1,226 1,215 1,205 1,194 1,183 1,173 1,162 1,152 1,141 1,131 1,120 1,110 1,099 1,089 1,078 1,068 1,057 1,047 1,036 1,026 1,015 2,212 2,202 2,191 2,181 2,170 2,159 2,149 2,138 2,128 2,117 2,107 2,096 2,086 2,075 2,065 2,054 2,044 2,033 2,023 2,012 2,002 1,991 1,980 1,970 1,959 1,949 1,938 1,928 1,917 1,907 1,896 1,886 1,875 1,865 1,854 1,844 1,833 1,823 1,812 1,801 1,791 1,780 1,770 1,759 1,749 1,738 1,728 1,717 1,707 1,696 1,686 1,675 1,665 1,654 1,644 *If the amount you are looking up from the worksheet is at least $40,250 but less than $40,295, your credit is $5. Otherwise, you cannot take the credit. **If the amount you are looking up from the worksheet is at least $40,450 but less than $40,463, your credit is $1. Otherwise, you cannot take the credit. (Continued on page 69) Need more information or forms? See page 96. - 68 - 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 40,500 40,550 40,600 40,650 40,700 40,750 40,800 40,850 40,900 40,950 41,000 41,050 41,100 41,150 41,200 41,250 41,300 41,350 41,400 41,450 41,500 41,550 41,600 41,650 41,700 41,750 41,800 41,850 41,900 41,950 42,000 42,050 42,100 42,150 42,200 42,250 42,300 42,350 42,400 42,450 42,500 42,550 42,600 42,650 42,700 42,750 42,800 42,850 42,900 42,950 43,000 43,050 43,100 43,150 43,200 40,550 40,600 40,650 40,700 40,750 40,800 40,850 40,900 40,950 41,000 41,050 41,100 41,150 41,200 41,250 41,300 41,350 41,400 41,450 41,500 41,550 41,600 41,650 41,700 41,750 41,800 41,850 41,900 41,950 42,000 42,050 42,100 42,150 42,200 42,250 42,300 42,350 42,400 42,450 42,500 42,550 42,600 42,650 42,700 42,750 42,800 42,850 42,900 42,950 43,000 43,050 43,100 43,150 43,200 43,250 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 580 569 559 548 538 527 517 506 496 485 475 464 454 443 433 422 412 401 390 380 369 359 348 338 327 317 306 296 285 275 264 254 243 232 222 211 201 190 180 169 159 148 138 127 117 106 96 85 75 64 53 43 32 22 11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,004 994 983 973 962 952 941 931 920 910 899 889 878 868 857 847 836 825 815 804 794 783 773 762 752 741 731 720 710 699 689 678 668 657 646 636 625 615 604 594 583 573 562 552 541 531 520 510 499 489 478 467 457 446 436 1,633 1,622 1,612 1,601 1,591 1,580 1,570 1,559 1,549 1,538 1,528 1,517 1,507 1,496 1,486 1,475 1,465 1,454 1,443 1,433 1,422 1,412 1,401 1,391 1,380 1,370 1,359 1,349 1,338 1,328 1,317 1,307 1,296 1,285 1,275 1,264 1,254 1,243 1,233 1,222 1,212 1,201 1,191 1,180 1,170 1,159 1,149 1,138 1,128 1,117 1,106 1,096 1,085 1,075 1,064 (Continued on page 70) - 69 - Need more information or forms? See page 96. 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 43,250 43,300 43,350 43,400 43,450 43,500 43,550 43,600 43,650 43,700 43,750 43,800 43,850 43,900 43,950 44,000 44,050 44,100 44,150 44,200 44,250 44,300 44,350 44,400 44,450 44,500 44,550 44,600 44,650 44,700 44,750 44,800 44,850 44,900 44,950 45,000 45,050 45,100 45,150 45,200 45,250 45,300 45,350 45,400 45,450 45,500 45,550 45,600 45,650 45,700 45,750 45,800 45,850 45,900 45,950 43,300 43,350 43,400 43,450 43,500 43,550 43,600 43,650 43,700 43,750 43,800 43,850 43,900 43,950 44,000 44,050 44,100 44,150 44,200 44,250 44,300 44,350 44,400 44,450 44,500 44,550 44,600 44,650 44,700 44,750 44,800 44,850 44,900 44,950 45,000 45,050 45,100 45,150 45,200 45,250 45,300 45,350 45,400 45,450 45,500 45,550 45,600 45,650 45,700 45,750 45,800 45,850 45,900 45,950 46,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 * 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 425 415 404 394 383 373 362 352 341 331 320 310 299 288 278 267 257 246 236 225 215 204 194 183 173 162 152 141 130 120 109 99 88 78 67 57 46 36 25 15 ** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,054 1,043 1,033 1,022 1,012 1,001 991 980 970 959 949 938 927 917 906 896 885 875 864 854 843 833 822 812 801 791 780 770 759 748 738 727 717 706 696 685 675 664 654 643 633 622 612 601 591 580 569 559 548 538 527 517 506 496 485 *If the amount you are looking up from the worksheet is at least $43,250 but less than $43,279, your credit is $3. Otherwise, you cannot take the credit. **If the amount you are looking up from the worksheet is at least $45,250 but less than $45,295, your credit is $5. Otherwise, you cannot take the credit. (Continued on page 71) Need more information or forms? See page 96. - 70 - 2009 Earned Income Credit (EIC) Table – Continued If the amount you are looking up from the worksheet is – (Caution. This is not a tax table.) And your filing status is – Married filing jointly and you have – No Children One Child Two Children Three Children Single, head of household, or qualifying widow(er) and you have – No Children One Child Two Children Three Children At least But less than Your credit is – Your credit is – 46,000 46,050 46,100 46,150 46,200 46,250 46,300 46,350 46,400 46,450 46,500 46,550 46,600 46,650 46,700 46,750 46,800 46,850 46,900 46,950 47,000 47,050 47,100 47,150 47,200 47,250 47,300 47,350 47,400 47,450 47,500 47,550 47,600 47,650 47,700 47,750 47,800 47,850 47,900 47,950 48,000 48,050 48,100 48,150 48,200 48,250 46,050 46,100 46,150 46,200 46,250 46,300 46,350 46,400 46,450 46,500 46,550 46,600 46,650 46,700 46,750 46,800 46,850 46,900 46,950 47,000 47,050 47,100 47,150 47,200 47,250 47,300 47,350 47,400 47,450 47,500 47,550 47,600 47,650 47,700 47,750 47,800 47,850 47,900 47,950 48,000 48,050 48,100 48,150 48,200 48,250 48,279 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 475 464 454 443 433 422 412 401 390 380 369 359 348 338 327 317 306 296 285 275 264 254 243 232 222 211 201 190 180 169 159 148 138 127 117 106 96 85 75 64 53 43 32 22 11 3 - 71 - Need more information or forms? See page 96. Page 72 of 104 of Instructions 1040 7:56 - 17-NOV-2009 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Form 1040 — Lines 65 Through 72 Line 65 Additional Child Tax Credit What Is the Additional Child Tax Credit? This credit is for certain people who have at least one qualifying child as defined in the instructions for line 6c on page 17. The additional child tax credit may give you a refund even if you do not owe any tax. No credit is allowed for homes bought after April 30, 2010 (after June 30, 2010, if you entered into a written binding contract before May 1, 2010). You can choose to claim the credit on your 2009 return for a home you bought in 2010 that qualifies for the credit. You generally must repay the credit if: • You dispose of the home within 36 months after buying it, or • You stop using the home as your main home during that 36-month period. See Form 5405 for more details, including special rules for certain members of the uniformed services, members of the U.S. Foreign Service, and employees of the intelligence community on official extended duty service. You cannot claim a refund for excess tier 2 RRTA tax on Form 1040. Instead, use Form 843. For more details, see Pub. 505. Line 70 Check the box(es) on line 70 to report any credit from Form 2439, 4136, 8801 (line 29), or 8885. Two Steps To Take the Additional Child Tax Credit! Step 1. Be sure you figured the amount, if any, of your child tax credit. See the instructions for line 51 that begin on page 42. Step 2. Read the TIP at the end of your Child Tax Credit Worksheet. Use Form 8812 to see if you can take the additional child tax credit, but only if you meet the condition given in that TIP. Refund Line 72 Amount Overpaid If line 72 is under $1, we will send a refund only on written request. If you want to check the status of your refund, please wait at least 72 hours after IRS acknowledges receipt of your e-filed return (3 to 4 weeks after you mail a paper return) to do so. But if you filed Form 8379 with your return, allow 14 weeks (11 weeks if you filed electronically). See page 93 for details. Line 66 Refundable Education Credit from Form 8863 If you meet the requirements to claim the American opportunity credit (see the instructions for line 49 on page 40), enter on line 66 the amount, if any, from Form 8863, line 16. Credit claimed on 2008 return. The maximum credit was originally $7,500 ($3,750 if married filing separately). So if you made the election to claim the credit on your 2008 return for a home you bought in 2009 and you did not use the February 2009 revision of Form 5405, you now may be able to claim a larger credit (up to $8,000) on an amended 2008 return. See Amended Return on page 91. TIP Line 68 Line 67 First-Time Homebuyer Credit You may be able to take this credit if you bought a main home in the United States and you (and your spouse if married) did not own any other main home during the 3-year period ending on the date you bought the home. If you constructed your main home, you are treated as having bought it on the date you first occupied it. If you bought the home after 2008 and before May 1, 2010 (before July 1, 2010, if you entered into a written binding contract before May 1, 2010), the credit generally is 10% of the purchase price of the home but is limited to $8,000 ($4,000 if married filing separately). You also may be able to take the credit, but it is limited to $6,500 ($3,250 if married filing separately), if: 1. You bought a main home in the United States after November 6, 2009, and before May 1, 2010 (before July 1, 2010, if you entered into a written binding contract before May 1, 2010), and 2. You (and your spouse if married) owned and used the same home as your main home for any period of 5 consecutive years during the 8-year period ending on the date you bought the home described in (1) above. Amount Paid With Request for Extension To File If you filed Form 4868 to get an automatic extension of time to file Form 1040, enter any amount you paid with that form or by electronic funds withdrawal or credit or debit card. If you paid by credit or debit card, do not include on line 68 the convenience fee you were charged. Also, include any amounts paid with Form 2350. If the amount you overpaid is large, you may want to decrease the amount of income tax withheld from your pay by filing a new Form W-4. See Income Tax Withholding and Estimated Tax Payments for 2010 on page 90. TIP Refund Offset If you owe past-due federal tax, state income tax, child support, spousal support, or certain federal nontax debts, such as student loans, all or part of the overpayment on line 72 may be used (offset) to pay the past-due amount. Offsets for federal taxes are made by the IRS. All other offsets are made by the Treasury Department’s Financial Management Service (FMS). For federal tax offsets, you will receive a notice from the IRS. For all other offsets, you will receive a notice from FMS. To find out if you may have an offset or if you have any questions about it, contact the agency to which you owe the debt. Line 69 Excess Social Security and Tier 1 RRTA Tax Withheld If you, or your spouse if filing a joint return, had more than one employer for 2009 and total wages of more than $106,800, too much social security or tier 1 railroad retirement (RRTA) tax may have been withheld. You can take a credit on this line for the amount withheld in excess of $6,621.60. But if any one employer withheld more than $6,621.60, you cannot claim the excess on your return. The employer should adjust the tax for you. If the employer does not adjust the overcollection, you can file a claim for refund using Form 843. Figure this amount separately for you and your spouse. Injured Spouse If you file a joint return and your spouse has not paid past-due federal tax, state income tax, child support, spousal support, or a federal nontax debt, such as a student loan, part or all of the overpayment on line 72 may be used (offset) to pay the past-due amount. But your part of the overpayment may be refunded to you if certain conditions apply and you complete Form 8379. For details, use TeleTax topic 203 (see page 93) or see Form 8379. Need more information or forms? See page 96. - 72 - Form 1040 — Lines 73a Through 73d Lines 73a Through 73d DIRECT DEPOSIT Simple. Safe. Secure. Fast Refunds! Choose direct deposit—a fast, simple, safe, secure way to have your refund deposited automatically to your checking or savings account, including an individual retirement arrangement (IRA). See the information about IRAs on this page. Why Use Direct Deposit? The IRS is not responsible for a lost refund if you enter the wrong account information. CAUTION Check with your financial institution to get the correct routing and account numbers and to make sure your direct deposit will be accepted. Do not use the routing number on a deposit slip if it is different from the routing number on your checks. ! If you file a joint return and check the box on line 73a and attach Form 8888 or fill in lines 73b through 73d, your spouse may get at least part of the refund. If the direct deposit to your account(s) is different from the amount you expected, you will receive an explanation in the mail about 2 weeks after your refund is deposited. TreasuryDirect®. You can request a deposit of your refund to a TreasuryDirect® online account to buy U.S. Treasury marketable securities and savings bonds. For more information, go to www. treasurydirect.gov. U.S. Series I Savings Bonds. You can use your refund to buy up to $5,000 in U.S. Series I Savings Bonds. The amount you request must be a multiple of $50. You do not need a TreasuryDirect® account to do this. See the Form 8888 instructions for details. structed them to use a different routing number for direct deposits. Ask your financial institution for the correct routing number to enter on line 73b if: • Your deposit is to a savings account that does not allow you to write checks, or • Your checks state they are payable through a financial institution different from the one at which you have your checking account. Line 73c Check the appropriate box for the type of account. Do not check more than one box. If the deposit is to an account such as an IRA, health savings account, brokerage account, or other similar account, ask your financial institution whether you should check the “Checking” or “Savings” box. You must check the correct box to ensure your deposit is accepted. For a TreasuryDirect® online account, check the “Savings” box. • You get your refund faster by direct deposit than you do by check. • Payment is more secure. There is no check that can get lost or stolen. • It is more convenient. You do not have to make a trip to the bank to deposit your check. • It saves tax dollars. It costs the government less to refund by direct deposit. If you want us to directly deposit the amount shown on line 73a to your checking or savings account, including an IRA, at a bank or other financial institution (such as a mutual fund, brokerage firm, or credit union) in the United States: • Check the box on line 73a and attach Form 8888 if you want to split the direct deposit of your refund among two or three accounts, or • Complete lines 73b through 73d if you want your refund deposited to only one account. Otherwise, we will send you a check. Note. If you do not want your refund directly deposited to your account, do not check the box on line 73a. Draw a line through the boxes on lines 73b and 73d. Line 73d The account number can be up to 17 characters (both numbers and letters). Include hyphens but omit spaces and special symbols. Enter the number from left to right and leave any unused boxes blank. On the sample check below, the account number is 20202086. Do not include the check number. You cannot request a deposit of your refund to an account that is not in your name (such as your tax preparer’s own account). Line 73a You cannot file Form 8888 and split your refund among two or three accounts if Form 8379 is filed with your return. Line 73b The routing number must be nine digits. The first two digits must be 01 through 12 or 21 through 32. Otherwise, the direct deposit will be rejected and a check will be sent instead. On the sample check below, the routing number is 250250025. Bob and Jennifer Maple would use that routing number unless their financial institution in- Sample Check—Lines 73b Through 73d BOB MAPLE JENNIFER MAPLE 123 Pear Lane Anyplace, DC 20000 PAY TO THE ORDER OF 1234 15-0000/0000 $ Account number (line 73d) DOLLARS ANYPLACE BANK Anyplace, DC 20000 For Routing number (line 73b) Do not include the check number. |:250250025|:202020 . "’86" 1234 The routing and account numbers may be in different places on your check. CAUTION Some financial institutions will not allow a joint refund to be deposited to an individual acCAUTION count. If the direct deposit is rejected, a check will be sent instead. The IRS is not responsible if a financial institution rejects a direct deposit. Individual Retirement Arrangement (IRA) You can have your refund directly deposited to a traditional IRA, Roth IRA, or SEP-IRA, but not a SIMPLE IRA. You must establish the IRA at a bank or other financial institution before you request direct deposit. Make sure your direct deposit will be accepted. You must also notify the trustee of your account of the year to which the deposit is to be applied unless the trustee will not accept a deposit for 2009. If you do not, the trustee can assume the deposit is for the year during which you are filing the return. For example, if you file your 2009 return during 2010 and do not notify the trustee in advance, the trustee can assume the deposit to your IRA is for 2010. If you designate your deposit to be for 2009, you must verify that the deposit was actually made to the account by the due date of the return (without regard to extensions). If the deposit is not made by that date, the deposit is not an IRA contribution for 2009. In that case, you must file an amended 2009 return and reduce any IRA ! SA M PL E - 73 - Need more information or forms? See page 96. Form 1040 — Lines 74 Through 76 deduction and any retirement savings contributions credit you claimed. Line 75 Amount You Owe To save interest and penalties, pay your taxes in full by April 15, 2010. You do not have to pay if line 75 is under $1. Include any estimated tax penalty from line 76 in the amount you enter on line 75. You can pay by check, money order, or credit or debit card. Do not include any estimated tax payment for 2010 in this payment. Instead, make the estimated tax payment separately. You and your spouse, if filing jointly, each may be able to contribute up to $5,000 ($6,000 CAUTION if age 50 or older at the end of 2009) to a traditional IRA or Roth IRA for 2009. The limit for 2010 is also $5,000 ($6,000 if age 50 or older at the end of 2010). A higher limit may apply for 2009 if you were a participant in a 401(k) plan and your employer was in bankruptcy in an earlier year. You may owe a penalty if your contributions exceed these limits. ! TIP To pay by check or money order. Make TIP For more information on IRAs, see Pub. 590. Line 74 Applied to Your 2010 Estimated Tax Enter on line 74 the amount, if any, of the overpayment on line 72 you want applied to your 2010 estimated tax. We will apply this amount to your account unless you attach a statement requesting us to apply it to your spouse’s account. Include your spouse’s social security number in the attached statement. your check or money order payable to the “United States Treasury” for the full amount due. Do not send cash. Do not attach the payment to your return. Write “2009 Form 1040” and your name, address, daytime phone number, and social security number (SSN) on your payment. If you are filing a joint return, enter the SSN shown first on your tax return. To help process your payment, enter the amount on the right side of the check like this: $ XXX.XX. Do not use dashes or lines (for example, do not enter “$ XXX – ” or xx “$ XXX100”). Then, complete Form 1040-V following the instructions on that form and enclose it in the envelope with your tax return and payment. Although you do not have to use Form 1040-V, doing so allows us to process your payment more accurately and efficiently. To pay by credit or debit card. To pay by CAUTION ! This election to apply part or all of the amount overpaid to your 2010 estimated tax cannot be changed later. Amount You Owe IRS e-file offers you the electronic payment option of electronic funds withdrawal (EFW). EFW can be used to pay your current year balance due and can be used to make up to four estimated tax payments. If you are filing early, you can schedule your payment for withdrawal from your account on a future date, up to and including April 15, 2010. If you file your return after April 15, 2010, you can include interest and penalty in your payment. Visit www.irs.gov and enter “e-pay” in the search box for details. You can also pay using EFTPS, a free tax payment system that allows you to make payments online or by phone. For more information or details on enrolling, visit www.eftps.gov or call Customer Service at 1-800-316-6541. TTY/TDD help is available by calling 1-800-733-4829. credit or debit card, call toll-free or visit the website of one of the service providers listed below and follow the instructions. A convenience fee will be charged by the service provider. This fee is deductible as a miscellaneous itemized deduction subject to the 2% of AGI limit on your 2010 income tax return. Fees may vary among the providers. You will be told what the fee is during the transaction and you will have the option to either continue or cancel the transaction. You can also find out what the fee will be by calling the provider’s toll-free automated customer service number or visiting the provider’s website shown below. Link2Gov Corporation 1-888-PAY-1040TM (1-888-729-1040) 1-888-658-5465 (Customer Service) www.PAY1040.com RBS WorldPay, Inc. 1-888-9-PAY-TAXTM (1-888-972-9829) 1-877-517-4881 (Customer Service) www.payUSAtax.com Official Payments Corporation 1-888-UPAY-TAXTM (1-888-872-9829) 1-877-754-4413 (Customer Service) www.officialpayments.com You may need to (a) increase the amount of income tax withheld from your pay by filing a new Form W-4, (b) increase the tax withheld from other income by filing Form W-4P or W-4V, or (c) make estimated tax payments for 2010. See Income Tax Withholding and Estimated Tax Payments for 2010 on page 90. What If You Cannot Pay? If you cannot pay the full amount shown on line 75 when you file, you can ask for: • An installment agreement, or • An extension of time to pay. Installment agreement. Under an installment agreement, you can pay all or part of the tax you owe in monthly installments. Generally, you can have up to 60 months to pay. However, even if your request to pay in installments is granted, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2010. You must also pay a fee. To limit the interest and penalty charges, pay as much of the tax as possible when you file. But before requesting an installment agreement, you should consider other less costly alternatives, such as a bank loan or credit card payment. To ask for an installment agreement, you can apply online or use Form 9465. To apply online, go to www.irs.gov, click on “I Need To” and select “Set Up a Payment Plan.” If you use Form 9465, you should receive a response to your request to make installment payments within 30 days. But if you file your return after March 31, it may take us longer to reply. Extension of time to pay. If paying the tax when it is due would cause you an undue hardship, you can ask for an extension of time to pay by filing Form 1127 by April 15, 2010. An extension generally will not be granted for more than 6 months. You will be charged interest on the tax not paid by April 15, 2010. You must pay the tax before the extension runs out. If you do not, penalties may be imposed. TIP Line 76 Estimated Tax Penalty You may owe this penalty if: • Line 75 is at least $1,000 and it is more than 10% of the tax shown on your return, or • You did not pay enough estimated tax by any of the due dates. This is true even if you are due a refund. For most people, the “tax shown on your return” is the amount on your 2009 Form 1040, line 60, minus the total of any amounts shown on lines 63, 64a, 65, 66, and 67 and Forms 8828, 4137, 4136, 5329 (Parts III through VIII only), 8801 (line 29 only), 8885, and 8919. Also subtract from line 60 any tax on an excess parachute payment, any excise tax on insider stock compensation of an expatriated corporation, Need more information or forms? See page 96. - 74 - Form 1040 — Line 76 any uncollected social security and Medicare or RRTA tax on tips or group-term life insurance, any look-back interest due under section 167(g) or 460(b), and any recapture of COBRA premium assistance. When figuring the amount on line 60, include household employment taxes only if line 61 is more than zero or you would owe the penalty even if you did not include those taxes. But if you entered an amount on Schedule H, line 7, include the total of that amount plus the household employment taxes on Form 1040, line 59. Exception. You will not owe the penalty if your 2008 tax return was for a tax year of 12 full months and any of the following applies. 1. You had no tax shown on your 2008 return and you were a U.S. citizen or resident for all of 2008. 2. The total of lines 61, 62, and 69 on your 2009 return is at least 100% of the tax shown on your 2008 return (110% of that amount if you are not a farmer or fisherman, your adjusted gross income (AGI) shown on your 2008 return was more than $150,000 (more than $75,000 if married filing separately for 2009), and item (3) below does not apply). Your estimated tax payments for 2009 must have been made on time and for the required amount. 3. The total of lines 61, 62, and 69 on your 2009 return is at least 90% of the tax shown on your 2008 return, your AGI shown on your 2008 return was less than $500,000 (less than $250,000 if married filing separately for 2009), and you certify on Form 2210 (or 2210-F for farmers and fishermen) that more than 50% of the gross income on your 2008 return was from a small business. A small business is one that had an average of fewer than 500 employees for 2008. See Form 2210 (or 2210-F) and its instructions for details. Your estimated tax payments for 2009 must have been made on time and for the required amount. For most people, the “tax shown on your 2008 return” is the amount on your 2008 Form 1040, line 61, minus the total of any amounts shown on lines 64a, 66, 69, and 70 and Forms 8828, 4137, 4136, 5329 (Parts III through VIII only), 8801 (line 30 only), 8885, and 8919. Also subtract from line 61 any tax on an excess parachute payment, any excise tax on insider stock compensation of an expatriated corporation, any uncollected social security and Medicare or RRTA tax on tips or group-term life insurance, and any look-back interest due under section 167(g) or 460(b). When figuring the amount on line 61, include household employment taxes only if line 62 is more than zero or you would have owed the estimated tax penalty for 2008 even if you did not include those taxes. But if you entered an amount on your 2008 Schedule H, line 7, include the total of that amount plus the household employment taxes on your 2008 Form 1040, line 60. The IRS will waive the penalty to the extent any underpayment is due to adjustments to the income tax withholding tables because of the making work pay credit. You must request a waiver by filing Form 2210 or 2210-F with your return. Figuring the Penalty If the Exception on this page does not apply and you choose to figure the penalty yourself, see Form 2210 (or 2210-F for farmers and fishermen) to find out if you owe the penalty. If you do, you can use the form to figure the amount. Enter the penalty on line 76. Add the penalty to any tax due and enter the total on line 75. If you are due a refund, subtract the penalty from the overpayment you show on line 72. Do not file Form 2210 with your return unless Form 2210 indicates that you must do so. Instead, keep it for your records. TIP IRS. If you want to expand the designee’s authorization, see Pub. 947. The authorization will automatically end no later than the due date (without regard to extensions) for filing your 2010 tax return. This is April 15, 2011, for most people. If you wish to revoke the authorization before it ends, see Pub. 947. Sign Your Return Form 1040 is not considered a valid return unless you sign it. If you are filing a joint return, your spouse must also sign. If your spouse cannot sign the return, see Pub. 501. Be sure to date your return and enter your occupation(s). If you have someone prepare your return, you are still responsible for the correctness of the return. If your return is signed by a representative for you, you must have a power of attorney attached that specifically authorizes the representative to sign your return. To do this, you can use Form 2848. If you are filing a joint return as a surviving spouse, see Death of a Taxpayer on page 91. Because Form 2210 is complicated, you can leave line 76 blank and the IRS will figure the penalty and send you a bill. We will not charge you interest on the penalty if you pay by the date specified on the bill. If your income varied during the year, the annualized income installment method may reduce the amount of your penalty. But you must file Form 2210 because the IRS cannot figure your penalty under this method. See the Instructions for Form 2210 for other situations in which you may be able to lower your penalty by filing Form 2210. TIP Child’s Return If your child cannot sign the return, either parent can sign the child’s name in the space provided. Then, enter “By (your signature), parent for minor child.” Daytime Phone Number Providing your daytime phone number may help speed the processing of your return. We may have questions about items on your return, such as the earned income credit, credit for child and dependent care expenses, etc. If you answer our questions over the phone, we may be able to continue processing your return without mailing you a letter. If you are filing a joint return, you can enter either your or your spouse’s daytime phone number. Third Party Designee If you want to allow your preparer, a friend, family member, or any other person you choose to discuss your 2009 tax return with the IRS, check the “Yes” box in the “Third Party Designee” area of your return. Also, enter the designee’s name, phone number, and any five digits the designee chooses as his or her personal identification number (PIN). If you check the “Yes” box, you, and your spouse if filing a joint return, are authorizing the IRS to call the designee to answer any questions that may arise during the processing of your return. You are also authorizing the designee to: • Give the IRS any information that is missing from your return, • Call the IRS for information about the processing of your return or the status of your refund or payment(s), • Receive copies of notices or transcripts related to your return, upon request, and • Respond to certain IRS notices about math errors, offsets, and return preparation. You are not authorizing the designee to receive any refund check, bind you to anything (including any additional tax liability), or otherwise represent you before the Paid Preparer Must Sign Your Return Generally, anyone you pay to prepare your return must sign it in the space provided. The preparer must give you a copy of the return for your records. Someone who prepares your return but does not charge you should not sign your return. Electronic Return Signatures! To file your return electronically, you must sign the return electronically using a personal identification number (PIN). If you are filing online using software, you must use a Self-Select PIN. If you are filing electronically using a tax practitioner, you can use a Self-Select PIN or a Practitioner PIN. Self-Select PIN. The Self-Select PIN method allows you to create your own PIN. - 75 - Need more information or forms? See page 96. If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. A PIN is any combination of five digits you choose except five zeros. If you use a PIN, there is nothing to sign and nothing to mail — not even your Forms W-2. To verify your identity, you will be prompted to enter your adjusted gross income (AGI) from your originally filed 2008 federal income tax return, if applicable. Do not use your AGI from an amended return (Form 1040X) or a math error correction made by IRS. AGI is the amount shown on your 2008 Form 1040, line 38; Form 1040A, line 22; or Form 1040EZ, line 4. If you do not have your 2008 income tax return, call the IRS at 1-800-829-1040 to get a free transcript of your return. (If you filed electronically last year, you may use your prior year PIN to verify your identity instead of your prior year AGI. The prior year PIN is the five digit PIN you used to electronically sign your 2008 return.) You will also be prompted to enter your date of birth (DOB). Make sure your DOB is accurate and matches the information on record with the Social Security Ad- ministration by checking your annual social security statement. You cannot use the Self-Select P IN method if you are a first-time filer under age 16 at CAUTION the end of 2009. Practitioner PIN. The Practitioner PIN method allows you to authorize your tax practitioner to enter or generate your PIN. The practitioner can provide you with details. Form 8453. You must send in a paper Form 8453 if you are attaching or filing Form 1098-C, 2848 (for an electronic return signed by an agent), 3115, 3468 (if attachments are required), 4136 (if certificate or statement required), 5713, 8283 (if a statement is required for Section A or if Section B is completed), 8332 (or certain pages from a divorce decree or separation agreement that went into effect after 1984 and before 2009), 8858, 8864 (if certification or statement required), 8885, Schedule D-1 (Form 1040) (if you elect not to include your transactions on the electronic STCGL or LTCGL records), or Appendix A (statement by taxpayer using the procedures in Rev. Proc. 2009-20 to determine a ! theft loss deduction related to a fraudulent investment arrangement). This revenue procedure is found on page 749 of Internal Revenue Bulletin 2009-14 at www.irs.gov/irb/2009-14_IRB/ar11.html. For more details, visit www.irs.gov/efile and click on “Individual Taxpayers.” Assemble Your Return Assemble any schedules and forms behind Form 1040 in order of the “Attachment Sequence No.” shown in the upper right corner of the schedule or form. If you have supporting statements, arrange them in the same order as the schedules or forms they support and attach them last. Do not attach correspondence or other items unless required to do so. Attach a copy of Forms W-2 and 2439 to the front of Form 1040. If you received a Form W-2c (a corrected Form W-2), attach a copy of your original Forms W-2 and any Forms W-2c. Also attach Forms W-2G and 1099-R to the front of Form 1040 if tax was withheld. Need more information or forms? See page 96. - 76 - 2009 Tax Table If line 43 (taxable income) is — At least But less than Single CAUTION ! See the instructions for line 44 that begin on page 37 to see if you must use the Tax Table below to figure your tax. Sample Table At least But less than Single Married filing jointly * Married filing separately Head of a household Example. Mr. and Mrs. Brown are filing a joint return. Their taxable income on Form 1040, line 43, is $25,300. First, they find the $25,300 – 25,350 taxable income line. Next, they find the column for married filing jointly and read down the column. The amount shown where the taxable income line and filing status column meet is $2,964. This is the tax amount they should enter on Form 1040, line 44. If line 43 (taxable income) is — Head of a household At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 25,200 25,250 25,300 25,350 25,250 25,300 25,350 25,400 3,366 3,374 3,381 3,389 Your tax is— 2,949 3,366 2,956 3,374 2,964 3,381 2,971 3,389 And you are — 3,186 3,194 3,201 3,209 And you are — Married Married filing filing jointly sepa* rately Your tax is — If line 43 (taxable income) is — At least But less than Single Married Married filing filing jointly sepa* rately Your tax is — Head of a household 0 5 15 25 50 75 100 125 150 175 200 225 250 275 300 325 350 375 400 425 450 475 500 525 550 575 600 625 650 675 700 725 750 775 800 825 850 875 900 925 950 975 5 15 25 50 75 100 125 150 175 200 225 250 275 300 325 350 375 400 425 450 475 500 525 550 575 600 625 650 675 700 725 750 775 800 825 850 875 900 925 950 975 1,000 0 1 2 4 6 9 11 14 16 19 21 24 26 29 31 34 36 39 41 44 46 49 51 54 56 59 61 64 66 69 71 74 76 79 81 84 86 89 91 94 96 99 0 1 2 4 6 9 11 14 16 19 21 24 26 29 31 34 36 39 41 44 46 49 51 54 56 59 61 64 66 69 71 74 76 79 81 84 86 89 91 94 96 99 0 1 2 4 6 9 11 14 16 19 21 24 26 29 31 34 36 39 41 44 46 49 51 54 56 59 61 64 66 69 71 74 76 79 81 84 86 89 91 94 96 99 0 1 2 4 6 9 11 14 16 19 21 24 26 29 31 34 36 39 41 44 46 49 51 54 56 59 61 64 66 69 71 74 76 79 81 84 86 89 91 94 96 99 1,300 1,325 1,350 1,375 1,400 1,425 1,450 1,475 1,500 1,525 1,550 1,575 1,600 1,625 1,650 1,675 1,700 1,725 1,750 1,775 1,800 1,825 1,850 1,875 1,900 1,925 1,950 1,975 1,325 1,350 1,375 1,400 1,425 1,450 1,475 1,500 1,525 1,550 1,575 1,600 1,625 1,650 1,675 1,700 1,725 1,750 1,775 1,800 1,825 1,850 1,875 1,900 1,925 1,950 1,975 2,000 131 134 136 139 141 144 146 149 151 154 156 159 161 164 166 169 171 174 176 179 181 184 186 189 191 194 196 199 131 134 136 139 141 144 146 149 151 154 156 159 161 164 166 169 171 174 176 179 181 184 186 189 191 194 196 199 131 134 136 139 141 144 146 149 151 154 156 159 161 164 166 169 171 174 176 179 181 184 186 189 191 194 196 199 131 134 136 139 141 144 146 149 151 154 156 159 161 164 166 169 171 174 176 179 181 184 186 189 191 194 196 199 2,700 2,725 2,750 2,775 2,800 2,825 2,850 2,875 2,900 2,925 2,950 2,975 2,725 2,750 2,775 2,800 2,825 2,850 2,875 2,900 2,925 2,950 2,975 3,000 271 274 276 279 281 284 286 289 291 294 296 299 271 274 276 279 281 284 286 289 291 294 296 299 271 274 276 279 281 284 286 289 291 294 296 299 271 274 276 279 281 284 286 289 291 294 296 299 3,000 3,000 3,050 3,100 3,150 3,200 3,250 3,300 3,350 3,400 3,450 3,500 3,550 3,600 3,650 3,700 3,750 3,800 3,850 3,900 3,950 3,050 3,100 3,150 3,200 3,250 3,300 3,350 3,400 3,450 3,500 3,550 3,600 3,650 3,700 3,750 3,800 3,850 3,900 3,950 4,000 303 308 313 318 323 328 333 338 343 348 353 358 363 368 373 378 383 388 393 398 303 308 313 318 323 328 333 338 343 348 353 358 363 368 373 378 383 388 393 398 303 308 313 318 323 328 333 338 343 348 353 358 363 368 373 378 383 388 393 398 303 308 313 318 323 328 333 338 343 348 353 358 363 368 373 378 383 388 393 398 2,000 2,000 2,025 2,050 2,075 2,100 2,125 2,150 2,175 2,200 2,225 2,250 2,275 2,300 2,325 2,350 2,375 2,400 2,425 2,450 2,475 2,500 2,525 2,550 2,575 2,600 2,625 2,650 2,675 2,025 2,050 2,075 2,100 2,125 2,150 2,175 2,200 2,225 2,250 2,275 2,300 2,325 2,350 2,375 2,400 2,425 2,450 2,475 2,500 2,525 2,550 2,575 2,600 2,625 2,650 2,675 2,700 201 204 206 209 211 214 216 219 221 224 226 229 231 234 236 239 241 244 246 249 251 254 256 259 261 264 266 269 201 204 206 209 211 214 216 219 221 224 226 229 231 234 236 239 241 244 246 249 251 254 256 259 261 264 266 269 201 204 206 209 211 214 216 219 221 224 226 229 231 234 236 239 241 244 246 249 251 254 256 259 261 264 266 269 201 204 206 209 211 214 216 219 221 224 226 229 231 234 236 239 241 244 246 249 251 254 256 259 261 264 266 269 4,000 4,000 4,050 4,100 4,150 4,200 4,250 4,300 4,350 4,400 4,450 4,500 4,550 4,600 4,650 4,700 4,750 4,800 4,850 4,900 4,950 4,050 4,100 4,150 4,200 4,250 4,300 4,350 4,400 4,450 4,500 4,550 4,600 4,650 4,700 4,750 4,800 4,850 4,900 4,950 5,000 403 408 413 418 423 428 433 438 443 448 453 458 463 468 473 478 483 488 493 498 403 408 413 418 423 428 433 438 443 448 453 458 463 468 473 478 483 488 493 498 403 408 413 418 423 428 433 438 443 448 453 458 463 468 473 478 483 488 493 498 403 408 413 418 423 428 433 438 443 448 453 458 463 468 473 478 483 488 493 498 1,000 1,000 1,025 1,050 1,075 1,100 1,125 1,150 1,175 1,200 1,225 1,250 1,275 1,025 1,050 1,075 1,100 1,125 1,150 1,175 1,200 1,225 1,250 1,275 1,300 101 104 106 109 111 114 116 119 121 124 126 129 101 104 106 109 111 114 116 119 121 124 126 129 101 104 106 109 111 114 116 119 121 124 126 129 101 104 106 109 111 114 116 119 121 124 126 129 * This column must also be used by a qualifying widow(er). (Continued on page 78) - 77 - 2009 Tax Table – Continued If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 5,000 5,000 5,050 5,100 5,150 5,200 5,250 5,300 5,350 5,400 5,450 5,500 5,550 5,600 5,650 5,700 5,750 5,800 5,850 5,900 5,950 5,050 5,100 5,150 5,200 5,250 5,300 5,350 5,400 5,450 5,500 5,550 5,600 5,650 5,700 5,750 5,800 5,850 5,900 5,950 6,000 503 508 513 518 523 528 533 538 543 548 553 558 563 568 573 578 583 588 593 598 503 508 513 518 523 528 533 538 543 548 553 558 563 568 573 578 583 588 593 598 503 508 513 518 523 528 533 538 543 548 553 558 563 568 573 578 583 588 593 598 503 508 513 518 523 528 533 538 543 548 553 558 563 568 573 578 583 588 593 598 8,000 8,000 8,050 8,100 8,150 8,200 8,250 8,300 8,350 8,400 8,450 8,500 8,550 8,600 8,650 8,700 8,750 8,800 8,850 8,900 8,950 8,050 8,100 8,150 8,200 8,250 8,300 8,350 8,400 8,450 8,500 8,550 8,600 8,650 8,700 8,750 8,800 8,850 8,900 8,950 9,000 803 808 813 818 823 828 833 839 846 854 861 869 876 884 891 899 906 914 921 929 803 808 813 818 823 828 833 838 843 848 853 858 863 868 873 878 883 888 893 898 803 808 813 818 823 828 833 839 846 854 861 869 876 884 891 899 906 914 921 929 803 808 813 818 823 828 833 838 843 848 853 858 863 868 873 878 883 888 893 898 11,000 11,000 11,050 11,100 11,150 11,200 11,250 11,300 11,350 11,400 11,450 11,500 11,550 11,600 11,650 11,700 11,750 11,800 11,850 11,900 11,950 11,050 11,100 11,150 11,200 11,250 11,300 11,350 11,400 11,450 11,500 11,550 11,600 11,650 11,700 11,750 11,800 11,850 11,900 11,950 12,000 1,236 1,244 1,251 1,259 1,266 1,274 1,281 1,289 1,296 1,304 1,311 1,319 1,326 1,334 1,341 1,349 1,356 1,364 1,371 1,379 1,103 1,108 1,113 1,118 1,123 1,128 1,133 1,138 1,143 1,148 1,153 1,158 1,163 1,168 1,173 1,178 1,183 1,188 1,193 1,198 1,236 1,244 1,251 1,259 1,266 1,274 1,281 1,289 1,296 1,304 1,311 1,319 1,326 1,334 1,341 1,349 1,356 1,364 1,371 1,379 1,103 1,108 1,113 1,118 1,123 1,128 1,133 1,138 1,143 1,148 1,153 1,158 1,163 1,168 1,173 1,178 1,183 1,188 1,193 1,199 6,000 6,000 6,050 6,100 6,150 6,200 6,250 6,300 6,350 6,400 6,450 6,500 6,550 6,600 6,650 6,700 6,750 6,800 6,850 6,900 6,950 6,050 6,100 6,150 6,200 6,250 6,300 6,350 6,400 6,450 6,500 6,550 6,600 6,650 6,700 6,750 6,800 6,850 6,900 6,950 7,000 603 608 613 618 623 628 633 638 643 648 653 658 663 668 673 678 683 688 693 698 603 608 613 618 623 628 633 638 643 648 653 658 663 668 673 678 683 688 693 698 603 608 613 618 623 628 633 638 643 648 653 658 663 668 673 678 683 688 693 698 603 608 613 618 623 628 633 638 643 648 653 658 663 668 673 678 683 688 693 698 9,000 9,000 9,050 9,050 9,100 9,100 9,150 9,150 9,200 9,200 9,250 9,250 9,300 9,300 9,350 9,350 9,400 9,400 9,450 9,450 9,500 9,500 9,550 9,550 9,600 9,600 9,650 9,650 9,700 9,700 9,750 9,750 9,800 9,800 9,850 9,850 9,900 9,900 9,950 9,950 10,000 936 944 951 959 966 974 981 989 996 1,004 1,011 1,019 1,026 1,034 1,041 1,049 1,056 1,064 1,071 1,079 903 908 913 918 923 928 933 938 943 948 953 958 963 968 973 978 983 988 993 998 936 944 951 959 966 974 981 989 996 1,004 1,011 1,019 1,026 1,034 1,041 1,049 1,056 1,064 1,071 1,079 903 908 913 918 923 928 933 938 943 948 953 958 963 968 973 978 983 988 993 998 12,000 12,000 12,050 12,100 12,150 12,200 12,250 12,300 12,350 12,400 12,450 12,500 12,550 12,600 12,650 12,700 12,750 12,800 12,850 12,900 12,950 12,050 12,100 12,150 12,200 12,250 12,300 12,350 12,400 12,450 12,500 12,550 12,600 12,650 12,700 12,750 12,800 12,850 12,900 12,950 13,000 1,386 1,394 1,401 1,409 1,416 1,424 1,431 1,439 1,446 1,454 1,461 1,469 1,476 1,484 1,491 1,499 1,506 1,514 1,521 1,529 1,203 1,208 1,213 1,218 1,223 1,228 1,233 1,238 1,243 1,248 1,253 1,258 1,263 1,268 1,273 1,278 1,283 1,288 1,293 1,298 1,386 1,394 1,401 1,409 1,416 1,424 1,431 1,439 1,446 1,454 1,461 1,469 1,476 1,484 1,491 1,499 1,506 1,514 1,521 1,529 1,206 1,214 1,221 1,229 1,236 1,244 1,251 1,259 1,266 1,274 1,281 1,289 1,296 1,304 1,311 1,319 1,326 1,334 1,341 1,349 7,000 7,000 7,050 7,100 7,150 7,200 7,250 7,300 7,350 7,400 7,450 7,500 7,550 7,600 7,650 7,700 7,750 7,800 7,850 7,900 7,950 7,050 7,100 7,150 7,200 7,250 7,300 7,350 7,400 7,450 7,500 7,550 7,600 7,650 7,700 7,750 7,800 7,850 7,900 7,950 8,000 703 708 713 718 723 728 733 738 743 748 753 758 763 768 773 778 783 788 793 798 703 708 713 718 723 728 733 738 743 748 753 758 763 768 773 778 783 788 793 798 703 708 713 718 723 728 733 738 743 748 753 758 763 768 773 778 783 788 793 798 703 708 713 718 723 728 733 738 743 748 753 758 763 768 773 778 783 788 793 798 10,000 10,000 10,050 10,100 10,150 10,200 10,250 10,300 10,350 10,400 10,450 10,500 10,550 10,600 10,650 10,700 10,750 10,800 10,850 10,900 10,950 10,050 10,100 10,150 10,200 10,250 10,300 10,350 10,400 10,450 10,500 10,550 10,600 10,650 10,700 10,750 10,800 10,850 10,900 10,950 11,000 1,086 1,094 1,101 1,109 1,116 1,124 1,131 1,139 1,146 1,154 1,161 1,169 1,176 1,184 1,191 1,199 1,206 1,214 1,221 1,229 1,003 1,008 1,013 1,018 1,023 1,028 1,033 1,038 1,043 1,048 1,053 1,058 1,063 1,068 1,073 1,078 1,083 1,088 1,093 1,098 1,086 1,094 1,101 1,109 1,116 1,124 1,131 1,139 1,146 1,154 1,161 1,169 1,176 1,184 1,191 1,199 1,206 1,214 1,221 1,229 1,003 1,008 1,013 1,018 1,023 1,028 1,033 1,038 1,043 1,048 1,053 1,058 1,063 1,068 1,073 1,078 1,083 1,088 1,093 1,098 13,000 13,000 13,050 13,100 13,150 13,200 13,250 13,300 13,350 13,400 13,450 13,500 13,550 13,600 13,650 13,700 13,750 13,800 13,850 13,900 13,950 13,050 13,100 13,150 13,200 13,250 13,300 13,350 13,400 13,450 13,500 13,550 13,600 13,650 13,700 13,750 13,800 13,850 13,900 13,950 14,000 1,536 1,544 1,551 1,559 1,566 1,574 1,581 1,589 1,596 1,604 1,611 1,619 1,626 1,634 1,641 1,649 1,656 1,664 1,671 1,679 1,303 1,308 1,313 1,318 1,323 1,328 1,333 1,338 1,343 1,348 1,353 1,358 1,363 1,368 1,373 1,378 1,383 1,388 1,393 1,398 1,536 1,544 1,551 1,559 1,566 1,574 1,581 1,589 1,596 1,604 1,611 1,619 1,626 1,634 1,641 1,649 1,656 1,664 1,671 1,679 1,356 1,364 1,371 1,379 1,386 1,394 1,401 1,409 1,416 1,424 1,431 1,439 1,446 1,454 1,461 1,469 1,476 1,484 1,491 1,499 * This column must also be used by a qualifying widow(er). (Continued on page 79) - 78 - 2009 Tax Table – Continued If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 14,000 14,000 14,050 14,100 14,150 14,200 14,250 14,300 14,350 14,400 14,450 14,500 14,550 14,600 14,650 14,700 14,750 14,800 14,850 14,900 14,950 14,050 14,100 14,150 14,200 14,250 14,300 14,350 14,400 14,450 14,500 14,550 14,600 14,650 14,700 14,750 14,800 14,850 14,900 14,950 15,000 1,686 1,694 1,701 1,709 1,716 1,724 1,731 1,739 1,746 1,754 1,761 1,769 1,776 1,784 1,791 1,799 1,806 1,814 1,821 1,829 1,403 1,408 1,413 1,418 1,423 1,428 1,433 1,438 1,443 1,448 1,453 1,458 1,463 1,468 1,473 1,478 1,483 1,488 1,493 1,498 1,686 1,694 1,701 1,709 1,716 1,724 1,731 1,739 1,746 1,754 1,761 1,769 1,776 1,784 1,791 1,799 1,806 1,814 1,821 1,829 1,506 1,514 1,521 1,529 1,536 1,544 1,551 1,559 1,566 1,574 1,581 1,589 1,596 1,604 1,611 1,619 1,626 1,634 1,641 1,649 17,000 17,000 17,050 17,100 17,150 17,200 17,250 17,300 17,350 17,400 17,450 17,500 17,550 17,600 17,650 17,700 17,750 17,800 17,850 17,900 17,950 17,050 17,100 17,150 17,200 17,250 17,300 17,350 17,400 17,450 17,500 17,550 17,600 17,650 17,700 17,750 17,800 17,850 17,900 17,950 18,000 2,136 2,144 2,151 2,159 2,166 2,174 2,181 2,189 2,196 2,204 2,211 2,219 2,226 2,234 2,241 2,249 2,256 2,264 2,271 2,279 1,719 1,726 1,734 1,741 1,749 1,756 1,764 1,771 1,779 1,786 1,794 1,801 1,809 1,816 1,824 1,831 1,839 1,846 1,854 1,861 2,136 2,144 2,151 2,159 2,166 2,174 2,181 2,189 2,196 2,204 2,211 2,219 2,226 2,234 2,241 2,249 2,256 2,264 2,271 2,279 1,956 1,964 1,971 1,979 1,986 1,994 2,001 2,009 2,016 2,024 2,031 2,039 2,046 2,054 2,061 2,069 2,076 2,084 2,091 2,099 20,000 20,000 20,050 20,100 20,150 20,200 20,250 20,300 20,350 20,400 20,450 20,500 20,550 20,600 20,650 20,700 20,750 20,800 20,850 20,900 20,950 20,050 20,100 20,150 20,200 20,250 20,300 20,350 20,400 20,450 20,500 20,550 20,600 20,650 20,700 20,750 20,800 20,850 20,900 20,950 21,000 2,586 2,594 2,601 2,609 2,616 2,624 2,631 2,639 2,646 2,654 2,661 2,669 2,676 2,684 2,691 2,699 2,706 2,714 2,721 2,729 2,169 2,176 2,184 2,191 2,199 2,206 2,214 2,221 2,229 2,236 2,244 2,251 2,259 2,266 2,274 2,281 2,289 2,296 2,304 2,311 2,586 2,594 2,601 2,609 2,616 2,624 2,631 2,639 2,646 2,654 2,661 2,669 2,676 2,684 2,691 2,699 2,706 2,714 2,721 2,729 2,406 2,414 2,421 2,429 2,436 2,444 2,451 2,459 2,466 2,474 2,481 2,489 2,496 2,504 2,511 2,519 2,526 2,534 2,541 2,549 15,000 15,000 15,050 15,100 15,150 15,200 15,250 15,300 15,350 15,400 15,450 15,500 15,550 15,600 15,650 15,700 15,750 15,800 15,850 15,900 15,950 15,050 15,100 15,150 15,200 15,250 15,300 15,350 15,400 15,450 15,500 15,550 15,600 15,650 15,700 15,750 15,800 15,850 15,900 15,950 16,000 1,836 1,844 1,851 1,859 1,866 1,874 1,881 1,889 1,896 1,904 1,911 1,919 1,926 1,934 1,941 1,949 1,956 1,964 1,971 1,979 1,503 1,508 1,513 1,518 1,523 1,528 1,533 1,538 1,543 1,548 1,553 1,558 1,563 1,568 1,573 1,578 1,583 1,588 1,593 1,598 1,836 1,844 1,851 1,859 1,866 1,874 1,881 1,889 1,896 1,904 1,911 1,919 1,926 1,934 1,941 1,949 1,956 1,964 1,971 1,979 1,656 1,664 1,671 1,679 1,686 1,694 1,701 1,709 1,716 1,724 1,731 1,739 1,746 1,754 1,761 1,769 1,776 1,784 1,791 1,799 18,000 18,000 18,050 18,100 18,150 18,200 18,250 18,300 18,350 18,400 18,450 18,500 18,550 18,600 18,650 18,700 18,750 18,800 18,850 18,900 18,950 18,050 18,100 18,150 18,200 18,250 18,300 18,350 18,400 18,450 18,500 18,550 18,600 18,650 18,700 18,750 18,800 18,850 18,900 18,950 19,000 2,286 2,294 2,301 2,309 2,316 2,324 2,331 2,339 2,346 2,354 2,361 2,369 2,376 2,384 2,391 2,399 2,406 2,414 2,421 2,429 1,869 1,876 1,884 1,891 1,899 1,906 1,914 1,921 1,929 1,936 1,944 1,951 1,959 1,966 1,974 1,981 1,989 1,996 2,004 2,011 2,286 2,294 2,301 2,309 2,316 2,324 2,331 2,339 2,346 2,354 2,361 2,369 2,376 2,384 2,391 2,399 2,406 2,414 2,421 2,429 2,106 2,114 2,121 2,129 2,136 2,144 2,151 2,159 2,166 2,174 2,181 2,189 2,196 2,204 2,211 2,219 2,226 2,234 2,241 2,249 21,000 21,000 21,050 21,100 21,150 21,200 21,250 21,300 21,350 21,400 21,450 21,500 21,550 21,600 21,650 21,700 21,750 21,800 21,850 21,900 21,950 21,050 21,100 21,150 21,200 21,250 21,300 21,350 21,400 21,450 21,500 21,550 21,600 21,650 21,700 21,750 21,800 21,850 21,900 21,950 22,000 2,736 2,744 2,751 2,759 2,766 2,774 2,781 2,789 2,796 2,804 2,811 2,819 2,826 2,834 2,841 2,849 2,856 2,864 2,871 2,879 2,319 2,326 2,334 2,341 2,349 2,356 2,364 2,371 2,379 2,386 2,394 2,401 2,409 2,416 2,424 2,431 2,439 2,446 2,454 2,461 2,736 2,744 2,751 2,759 2,766 2,774 2,781 2,789 2,796 2,804 2,811 2,819 2,826 2,834 2,841 2,849 2,856 2,864 2,871 2,879 2,556 2,564 2,571 2,579 2,586 2,594 2,601 2,609 2,616 2,624 2,631 2,639 2,646 2,654 2,661 2,669 2,676 2,684 2,691 2,699 16,000 16,000 16,050 16,100 16,150 16,200 16,250 16,300 16,350 16,400 16,450 16,500 16,550 16,600 16,650 16,700 16,750 16,800 16,850 16,900 16,950 16,050 16,100 16,150 16,200 16,250 16,300 16,350 16,400 16,450 16,500 16,550 16,600 16,650 16,700 16,750 16,800 16,850 16,900 16,950 17,000 1,986 1,994 2,001 2,009 2,016 2,024 2,031 2,039 2,046 2,054 2,061 2,069 2,076 2,084 2,091 2,099 2,106 2,114 2,121 2,129 1,603 1,608 1,613 1,618 1,623 1,628 1,633 1,638 1,643 1,648 1,653 1,658 1,663 1,668 1,674 1,681 1,689 1,696 1,704 1,711 1,986 1,994 2,001 2,009 2,016 2,024 2,031 2,039 2,046 2,054 2,061 2,069 2,076 2,084 2,091 2,099 2,106 2,114 2,121 2,129 1,806 1,814 1,821 1,829 1,836 1,844 1,851 1,859 1,866 1,874 1,881 1,889 1,896 1,904 1,911 1,919 1,926 1,934 1,941 1,949 19,000 19,000 19,050 19,100 19,150 19,200 19,250 19,300 19,350 19,400 19,450 19,500 19,550 19,600 19,650 19,700 19,750 19,800 19,850 19,900 19,950 19,050 19,100 19,150 19,200 19,250 19,300 19,350 19,400 19,450 19,500 19,550 19,600 19,650 19,700 19,750 19,800 19,850 19,900 19,950 20,000 2,436 2,444 2,451 2,459 2,466 2,474 2,481 2,489 2,496 2,504 2,511 2,519 2,526 2,534 2,541 2,549 2,556 2,564 2,571 2,579 2,019 2,026 2,034 2,041 2,049 2,056 2,064 2,071 2,079 2,086 2,094 2,101 2,109 2,116 2,124 2,131 2,139 2,146 2,154 2,161 2,436 2,444 2,451 2,459 2,466 2,474 2,481 2,489 2,496 2,504 2,511 2,519 2,526 2,534 2,541 2,549 2,556 2,564 2,571 2,579 2,256 2,264 2,271 2,279 2,286 2,294 2,301 2,309 2,316 2,324 2,331 2,339 2,346 2,354 2,361 2,369 2,376 2,384 2,391 2,399 22,000 22,000 22,050 22,100 22,150 22,200 22,250 22,300 22,350 22,400 22,450 22,500 22,550 22,600 22,650 22,700 22,750 22,800 22,850 22,900 22,950 22,050 22,100 22,150 22,200 22,250 22,300 22,350 22,400 22,450 22,500 22,550 22,600 22,650 22,700 22,750 22,800 22,850 22,900 22,950 23,000 2,886 2,894 2,901 2,909 2,916 2,924 2,931 2,939 2,946 2,954 2,961 2,969 2,976 2,984 2,991 2,999 3,006 3,014 3,021 3,029 2,469 2,476 2,484 2,491 2,499 2,506 2,514 2,521 2,529 2,536 2,544 2,551 2,559 2,566 2,574 2,581 2,589 2,596 2,604 2,611 2,886 2,894 2,901 2,909 2,916 2,924 2,931 2,939 2,946 2,954 2,961 2,969 2,976 2,984 2,991 2,999 3,006 3,014 3,021 3,029 2,706 2,714 2,721 2,729 2,736 2,744 2,751 2,759 2,766 2,774 2,781 2,789 2,796 2,804 2,811 2,819 2,826 2,834 2,841 2,849 * This column must also be used by a qualifying widow(er). (Continued on page 80) - 79 - 2009 Tax Table – Continued If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 23,000 23,000 23,050 23,100 23,150 23,200 23,250 23,300 23,350 23,400 23,450 23,500 23,550 23,600 23,650 23,700 23,750 23,800 23,850 23,900 23,950 23,050 23,100 23,150 23,200 23,250 23,300 23,350 23,400 23,450 23,500 23,550 23,600 23,650 23,700 23,750 23,800 23,850 23,900 23,950 24,000 3,036 3,044 3,051 3,059 3,066 3,074 3,081 3,089 3,096 3,104 3,111 3,119 3,126 3,134 3,141 3,149 3,156 3,164 3,171 3,179 2,619 2,626 2,634 2,641 2,649 2,656 2,664 2,671 2,679 2,686 2,694 2,701 2,709 2,716 2,724 2,731 2,739 2,746 2,754 2,761 3,036 3,044 3,051 3,059 3,066 3,074 3,081 3,089 3,096 3,104 3,111 3,119 3,126 3,134 3,141 3,149 3,156 3,164 3,171 3,179 2,856 2,864 2,871 2,879 2,886 2,894 2,901 2,909 2,916 2,924 2,931 2,939 2,946 2,954 2,961 2,969 2,976 2,984 2,991 2,999 26,000 26,000 26,050 26,100 26,150 26,200 26,250 26,300 26,350 26,400 26,450 26,500 26,550 26,600 26,650 26,700 26,750 26,800 26,850 26,900 26,950 26,050 26,100 26,150 26,200 26,250 26,300 26,350 26,400 26,450 26,500 26,550 26,600 26,650 26,700 26,750 26,800 26,850 26,900 26,950 27,000 3,486 3,494 3,501 3,509 3,516 3,524 3,531 3,539 3,546 3,554 3,561 3,569 3,576 3,584 3,591 3,599 3,606 3,614 3,621 3,629 3,069 3,076 3,084 3,091 3,099 3,106 3,114 3,121 3,129 3,136 3,144 3,151 3,159 3,166 3,174 3,181 3,189 3,196 3,204 3,211 3,486 3,494 3,501 3,509 3,516 3,524 3,531 3,539 3,546 3,554 3,561 3,569 3,576 3,584 3,591 3,599 3,606 3,614 3,621 3,629 3,306 3,314 3,321 3,329 3,336 3,344 3,351 3,359 3,366 3,374 3,381 3,389 3,396 3,404 3,411 3,419 3,426 3,434 3,441 3,449 29,000 29,000 29,050 29,100 29,150 29,200 29,250 29,300 29,350 29,400 29,450 29,500 29,550 29,600 29,650 29,700 29,750 29,800 29,850 29,900 29,950 29,050 29,100 29,150 29,200 29,250 29,300 29,350 29,400 29,450 29,500 29,550 29,600 29,650 29,700 29,750 29,800 29,850 29,900 29,950 30,000 3,936 3,944 3,951 3,959 3,966 3,974 3,981 3,989 3,996 4,004 4,011 4,019 4,026 4,034 4,041 4,049 4,056 4,064 4,071 4,079 3,519 3,526 3,534 3,541 3,549 3,556 3,564 3,571 3,579 3,586 3,594 3,601 3,609 3,616 3,624 3,631 3,639 3,646 3,654 3,661 3,936 3,944 3,951 3,959 3,966 3,974 3,981 3,989 3,996 4,004 4,011 4,019 4,026 4,034 4,041 4,049 4,056 4,064 4,071 4,079 3,756 3,764 3,771 3,779 3,786 3,794 3,801 3,809 3,816 3,824 3,831 3,839 3,846 3,854 3,861 3,869 3,876 3,884 3,891 3,899 24,000 24,000 24,050 24,100 24,150 24,200 24,250 24,300 24,350 24,400 24,450 24,500 24,550 24,600 24,650 24,700 24,750 24,800 24,850 24,900 24,950 24,050 24,100 24,150 24,200 24,250 24,300 24,350 24,400 24,450 24,500 24,550 24,600 24,650 24,700 24,750 24,800 24,850 24,900 24,950 25,000 3,186 3,194 3,201 3,209 3,216 3,224 3,231 3,239 3,246 3,254 3,261 3,269 3,276 3,284 3,291 3,299 3,306 3,314 3,321 3,329 2,769 2,776 2,784 2,791 2,799 2,806 2,814 2,821 2,829 2,836 2,844 2,851 2,859 2,866 2,874 2,881 2,889 2,896 2,904 2,911 3,186 3,194 3,201 3,209 3,216 3,224 3,231 3,239 3,246 3,254 3,261 3,269 3,276 3,284 3,291 3,299 3,306 3,314 3,321 3,329 3,006 3,014 3,021 3,029 3,036 3,044 3,051 3,059 3,066 3,074 3,081 3,089 3,096 3,104 3,111 3,119 3,126 3,134 3,141 3,149 27,000 27,000 27,050 27,100 27,150 27,200 27,250 27,300 27,350 27,400 27,450 27,500 27,550 27,600 27,650 27,700 27,750 27,800 27,850 27,900 27,950 27,050 27,100 27,150 27,200 27,250 27,300 27,350 27,400 27,450 27,500 27,550 27,600 27,650 27,700 27,750 27,800 27,850 27,900 27,950 28,000 3,636 3,644 3,651 3,659 3,666 3,674 3,681 3,689 3,696 3,704 3,711 3,719 3,726 3,734 3,741 3,749 3,756 3,764 3,771 3,779 3,219 3,226 3,234 3,241 3,249 3,256 3,264 3,271 3,279 3,286 3,294 3,301 3,309 3,316 3,324 3,331 3,339 3,346 3,354 3,361 3,636 3,644 3,651 3,659 3,666 3,674 3,681 3,689 3,696 3,704 3,711 3,719 3,726 3,734 3,741 3,749 3,756 3,764 3,771 3,779 3,456 3,464 3,471 3,479 3,486 3,494 3,501 3,509 3,516 3,524 3,531 3,539 3,546 3,554 3,561 3,569 3,576 3,584 3,591 3,599 30,000 30,000 30,050 30,100 30,150 30,200 30,250 30,300 30,350 30,400 30,450 30,500 30,550 30,600 30,650 30,700 30,750 30,800 30,850 30,900 30,950 30,050 30,100 30,150 30,200 30,250 30,300 30,350 30,400 30,450 30,500 30,550 30,600 30,650 30,700 30,750 30,800 30,850 30,900 30,950 31,000 4,086 4,094 4,101 4,109 4,116 4,124 4,131 4,139 4,146 4,154 4,161 4,169 4,176 4,184 4,191 4,199 4,206 4,214 4,221 4,229 3,669 3,676 3,684 3,691 3,699 3,706 3,714 3,721 3,729 3,736 3,744 3,751 3,759 3,766 3,774 3,781 3,789 3,796 3,804 3,811 4,086 4,094 4,101 4,109 4,116 4,124 4,131 4,139 4,146 4,154 4,161 4,169 4,176 4,184 4,191 4,199 4,206 4,214 4,221 4,229 3,906 3,914 3,921 3,929 3,936 3,944 3,951 3,959 3,966 3,974 3,981 3,989 3,996 4,004 4,011 4,019 4,026 4,034 4,041 4,049 25,000 25,000 25,050 25,100 25,150 25,200 25,250 25,300 25,350 25,400 25,450 25,500 25,550 25,600 25,650 25,700 25,750 25,800 25,850 25,900 25,950 25,050 25,100 25,150 25,200 25,250 25,300 25,350 25,400 25,450 25,500 25,550 25,600 25,650 25,700 25,750 25,800 25,850 25,900 25,950 26,000 3,336 3,344 3,351 3,359 3,366 3,374 3,381 3,389 3,396 3,404 3,411 3,419 3,426 3,434 3,441 3,449 3,456 3,464 3,471 3,479 2,919 2,926 2,934 2,941 2,949 2,956 2,964 2,971 2,979 2,986 2,994 3,001 3,009 3,016 3,024 3,031 3,039 3,046 3,054 3,061 3,336 3,344 3,351 3,359 3,366 3,374 3,381 3,389 3,396 3,404 3,411 3,419 3,426 3,434 3,441 3,449 3,456 3,464 3,471 3,479 3,156 3,164 3,171 3,179 3,186 3,194 3,201 3,209 3,216 3,224 3,231 3,239 3,246 3,254 3,261 3,269 3,276 3,284 3,291 3,299 28,000 28,000 28,050 28,100 28,150 28,200 28,250 28,300 28,350 28,400 28,450 28,500 28,550 28,600 28,650 28,700 28,750 28,800 28,850 28,900 28,950 28,050 28,100 28,150 28,200 28,250 28,300 28,350 28,400 28,450 28,500 28,550 28,600 28,650 28,700 28,750 28,800 28,850 28,900 28,950 29,000 3,786 3,794 3,801 3,809 3,816 3,824 3,831 3,839 3,846 3,854 3,861 3,869 3,876 3,884 3,891 3,899 3,906 3,914 3,921 3,929 3,369 3,376 3,384 3,391 3,399 3,406 3,414 3,421 3,429 3,436 3,444 3,451 3,459 3,466 3,474 3,481 3,489 3,496 3,504 3,511 3,786 3,794 3,801 3,809 3,816 3,824 3,831 3,839 3,846 3,854 3,861 3,869 3,876 3,884 3,891 3,899 3,906 3,914 3,921 3,929 3,606 3,614 3,621 3,629 3,636 3,644 3,651 3,659 3,666 3,674 3,681 3,689 3,696 3,704 3,711 3,719 3,726 3,734 3,741 3,749 31,000 31,000 31,050 31,100 31,150 31,200 31,250 31,300 31,350 31,400 31,450 31,500 31,550 31,600 31,650 31,700 31,750 31,800 31,850 31,900 31,950 31,050 31,100 31,150 31,200 31,250 31,300 31,350 31,400 31,450 31,500 31,550 31,600 31,650 31,700 31,750 31,800 31,850 31,900 31,950 32,000 4,236 4,244 4,251 4,259 4,266 4,274 4,281 4,289 4,296 4,304 4,311 4,319 4,326 4,334 4,341 4,349 4,356 4,364 4,371 4,379 3,819 3,826 3,834 3,841 3,849 3,856 3,864 3,871 3,879 3,886 3,894 3,901 3,909 3,916 3,924 3,931 3,939 3,946 3,954 3,961 4,236 4,244 4,251 4,259 4,266 4,274 4,281 4,289 4,296 4,304 4,311 4,319 4,326 4,334 4,341 4,349 4,356 4,364 4,371 4,379 4,056 4,064 4,071 4,079 4,086 4,094 4,101 4,109 4,116 4,124 4,131 4,139 4,146 4,154 4,161 4,169 4,176 4,184 4,191 4,199 * This column must also be used by a qualifying widow(er). (Continued on page 81) - 80 - 2009 Tax Table – Continued If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 32,000 32,000 32,050 32,100 32,150 32,200 32,250 32,300 32,350 32,400 32,450 32,500 32,550 32,600 32,650 32,700 32,750 32,800 32,850 32,900 32,950 32,050 32,100 32,150 32,200 32,250 32,300 32,350 32,400 32,450 32,500 32,550 32,600 32,650 32,700 32,750 32,800 32,850 32,900 32,950 33,000 4,386 4,394 4,401 4,409 4,416 4,424 4,431 4,439 4,446 4,454 4,461 4,469 4,476 4,484 4,491 4,499 4,506 4,514 4,521 4,529 3,969 3,976 3,984 3,991 3,999 4,006 4,014 4,021 4,029 4,036 4,044 4,051 4,059 4,066 4,074 4,081 4,089 4,096 4,104 4,111 4,386 4,394 4,401 4,409 4,416 4,424 4,431 4,439 4,446 4,454 4,461 4,469 4,476 4,484 4,491 4,499 4,506 4,514 4,521 4,529 4,206 4,214 4,221 4,229 4,236 4,244 4,251 4,259 4,266 4,274 4,281 4,289 4,296 4,304 4,311 4,319 4,326 4,334 4,341 4,349 35,000 35,000 35,050 35,100 35,150 35,200 35,250 35,300 35,350 35,400 35,450 35,500 35,550 35,600 35,650 35,700 35,750 35,800 35,850 35,900 35,950 35,050 35,100 35,150 35,200 35,250 35,300 35,350 35,400 35,450 35,500 35,550 35,600 35,650 35,700 35,750 35,800 35,850 35,900 35,950 36,000 4,944 4,956 4,969 4,981 4,994 5,006 5,019 5,031 5,044 5,056 5,069 5,081 5,094 5,106 5,119 5,131 5,144 5,156 5,169 5,181 4,419 4,426 4,434 4,441 4,449 4,456 4,464 4,471 4,479 4,486 4,494 4,501 4,509 4,516 4,524 4,531 4,539 4,546 4,554 4,561 4,944 4,956 4,969 4,981 4,994 5,006 5,019 5,031 5,044 5,056 5,069 5,081 5,094 5,106 5,119 5,131 5,144 5,156 5,169 5,181 4,656 4,664 4,671 4,679 4,686 4,694 4,701 4,709 4,716 4,724 4,731 4,739 4,746 4,754 4,761 4,769 4,776 4,784 4,791 4,799 38,000 38,000 38,050 38,100 38,150 38,200 38,250 38,300 38,350 38,400 38,450 38,500 38,550 38,600 38,650 38,700 38,750 38,800 38,850 38,900 38,950 38,050 38,100 38,150 38,200 38,250 38,300 38,350 38,400 38,450 38,500 38,550 38,600 38,650 38,700 38,750 38,800 38,850 38,900 38,950 39,000 5,694 5,706 5,719 5,731 5,744 5,756 5,769 5,781 5,794 5,806 5,819 5,831 5,844 5,856 5,869 5,881 5,894 5,906 5,919 5,931 4,869 4,876 4,884 4,891 4,899 4,906 4,914 4,921 4,929 4,936 4,944 4,951 4,959 4,966 4,974 4,981 4,989 4,996 5,004 5,011 5,694 5,706 5,719 5,731 5,744 5,756 5,769 5,781 5,794 5,806 5,819 5,831 5,844 5,856 5,869 5,881 5,894 5,906 5,919 5,931 5,106 5,114 5,121 5,129 5,136 5,144 5,151 5,159 5,166 5,174 5,181 5,189 5,196 5,204 5,211 5,219 5,226 5,234 5,241 5,249 33,000 33,000 33,050 33,100 33,150 33,200 33,250 33,300 33,350 33,400 33,450 33,500 33,550 33,600 33,650 33,700 33,750 33,800 33,850 33,900 33,950 33,050 33,100 33,150 33,200 33,250 33,300 33,350 33,400 33,450 33,500 33,550 33,600 33,650 33,700 33,750 33,800 33,850 33,900 33,950 34,000 4,536 4,544 4,551 4,559 4,566 4,574 4,581 4,589 4,596 4,604 4,611 4,619 4,626 4,634 4,641 4,649 4,656 4,664 4,671 4,681 4,119 4,126 4,134 4,141 4,149 4,156 4,164 4,171 4,179 4,186 4,194 4,201 4,209 4,216 4,224 4,231 4,239 4,246 4,254 4,261 4,536 4,544 4,551 4,559 4,566 4,574 4,581 4,589 4,596 4,604 4,611 4,619 4,626 4,634 4,641 4,649 4,656 4,664 4,671 4,681 4,356 4,364 4,371 4,379 4,386 4,394 4,401 4,409 4,416 4,424 4,431 4,439 4,446 4,454 4,461 4,469 4,476 4,484 4,491 4,499 36,000 36,000 36,050 36,100 36,150 36,200 36,250 36,300 36,350 36,400 36,450 36,500 36,550 36,600 36,650 36,700 36,750 36,800 36,850 36,900 36,950 36,050 36,100 36,150 36,200 36,250 36,300 36,350 36,400 36,450 36,500 36,550 36,600 36,650 36,700 36,750 36,800 36,850 36,900 36,950 37,000 5,194 5,206 5,219 5,231 5,244 5,256 5,269 5,281 5,294 5,306 5,319 5,331 5,344 5,356 5,369 5,381 5,394 5,406 5,419 5,431 4,569 4,576 4,584 4,591 4,599 4,606 4,614 4,621 4,629 4,636 4,644 4,651 4,659 4,666 4,674 4,681 4,689 4,696 4,704 4,711 5,194 5,206 5,219 5,231 5,244 5,256 5,269 5,281 5,294 5,306 5,319 5,331 5,344 5,356 5,369 5,381 5,394 5,406 5,419 5,431 4,806 4,814 4,821 4,829 4,836 4,844 4,851 4,859 4,866 4,874 4,881 4,889 4,896 4,904 4,911 4,919 4,926 4,934 4,941 4,949 39,000 39,000 39,050 39,100 39,150 39,200 39,250 39,300 39,350 39,400 39,450 39,500 39,550 39,600 39,650 39,700 39,750 39,800 39,850 39,900 39,950 39,050 39,100 39,150 39,200 39,250 39,300 39,350 39,400 39,450 39,500 39,550 39,600 39,650 39,700 39,750 39,800 39,850 39,900 39,950 40,000 5,944 5,956 5,969 5,981 5,994 6,006 6,019 6,031 6,044 6,056 6,069 6,081 6,094 6,106 6,119 6,131 6,144 6,156 6,169 6,181 5,019 5,026 5,034 5,041 5,049 5,056 5,064 5,071 5,079 5,086 5,094 5,101 5,109 5,116 5,124 5,131 5,139 5,146 5,154 5,161 5,944 5,956 5,969 5,981 5,994 6,006 6,019 6,031 6,044 6,056 6,069 6,081 6,094 6,106 6,119 6,131 6,144 6,156 6,169 6,181 5,256 5,264 5,271 5,279 5,286 5,294 5,301 5,309 5,316 5,324 5,331 5,339 5,346 5,354 5,361 5,369 5,376 5,384 5,391 5,399 34,000 34,000 34,050 34,100 34,150 34,200 34,250 34,300 34,350 34,400 34,450 34,500 34,550 34,600 34,650 34,700 34,750 34,800 34,850 34,900 34,950 34,050 34,100 34,150 34,200 34,250 34,300 34,350 34,400 34,450 34,500 34,550 34,600 34,650 34,700 34,750 34,800 34,850 34,900 34,950 35,000 4,694 4,706 4,719 4,731 4,744 4,756 4,769 4,781 4,794 4,806 4,819 4,831 4,844 4,856 4,869 4,881 4,894 4,906 4,919 4,931 4,269 4,276 4,284 4,291 4,299 4,306 4,314 4,321 4,329 4,336 4,344 4,351 4,359 4,366 4,374 4,381 4,389 4,396 4,404 4,411 4,694 4,706 4,719 4,731 4,744 4,756 4,769 4,781 4,794 4,806 4,819 4,831 4,844 4,856 4,869 4,881 4,894 4,906 4,919 4,931 4,506 4,514 4,521 4,529 4,536 4,544 4,551 4,559 4,566 4,574 4,581 4,589 4,596 4,604 4,611 4,619 4,626 4,634 4,641 4,649 37,000 37,000 37,050 37,100 37,150 37,200 37,250 37,300 37,350 37,400 37,450 37,500 37,550 37,600 37,650 37,700 37,750 37,800 37,850 37,900 37,950 37,050 37,100 37,150 37,200 37,250 37,300 37,350 37,400 37,450 37,500 37,550 37,600 37,650 37,700 37,750 37,800 37,850 37,900 37,950 38,000 5,444 5,456 5,469 5,481 5,494 5,506 5,519 5,531 5,544 5,556 5,569 5,581 5,594 5,606 5,619 5,631 5,644 5,656 5,669 5,681 4,719 4,726 4,734 4,741 4,749 4,756 4,764 4,771 4,779 4,786 4,794 4,801 4,809 4,816 4,824 4,831 4,839 4,846 4,854 4,861 5,444 5,456 5,469 5,481 5,494 5,506 5,519 5,531 5,544 5,556 5,569 5,581 5,594 5,606 5,619 5,631 5,644 5,656 5,669 5,681 4,956 4,964 4,971 4,979 4,986 4,994 5,001 5,009 5,016 5,024 5,031 5,039 5,046 5,054 5,061 5,069 5,076 5,084 5,091 5,099 40,000 40,000 40,050 40,100 40,150 40,200 40,250 40,300 40,350 40,400 40,450 40,500 40,550 40,600 40,650 40,700 40,750 40,800 40,850 40,900 40,950 40,050 40,100 40,150 40,200 40,250 40,300 40,350 40,400 40,450 40,500 40,550 40,600 40,650 40,700 40,750 40,800 40,850 40,900 40,950 41,000 6,194 6,206 6,219 6,231 6,244 6,256 6,269 6,281 6,294 6,306 6,319 6,331 6,344 6,356 6,369 6,381 6,394 6,406 6,419 6,431 5,169 5,176 5,184 5,191 5,199 5,206 5,214 5,221 5,229 5,236 5,244 5,251 5,259 5,266 5,274 5,281 5,289 5,296 5,304 5,311 6,194 6,206 6,219 6,231 6,244 6,256 6,269 6,281 6,294 6,306 6,319 6,331 6,344 6,356 6,369 6,381 6,394 6,406 6,419 6,431 5,406 5,414 5,421 5,429 5,436 5,444 5,451 5,459 5,466 5,474 5,481 5,489 5,496 5,504 5,511 5,519 5,526 5,534 5,541 5,549 * This column must also be used by a qualifying widow(er). (Continued on page 82) - 81 - 2009 Tax Table – Continued If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 41,000 41,000 41,050 41,100 41,150 41,200 41,250 41,300 41,350 41,400 41,450 41,500 41,550 41,600 41,650 41,700 41,750 41,800 41,850 41,900 41,950 41,050 41,100 41,150 41,200 41,250 41,300 41,350 41,400 41,450 41,500 41,550 41,600 41,650 41,700 41,750 41,800 41,850 41,900 41,950 42,000 6,444 6,456 6,469 6,481 6,494 6,506 6,519 6,531 6,544 6,556 6,569 6,581 6,594 6,606 6,619 6,631 6,644 6,656 6,669 6,681 5,319 5,326 5,334 5,341 5,349 5,356 5,364 5,371 5,379 5,386 5,394 5,401 5,409 5,416 5,424 5,431 5,439 5,446 5,454 5,461 6,444 6,456 6,469 6,481 6,494 6,506 6,519 6,531 6,544 6,556 6,569 6,581 6,594 6,606 6,619 6,631 6,644 6,656 6,669 6,681 5,556 5,564 5,571 5,579 5,586 5,594 5,601 5,609 5,616 5,624 5,631 5,639 5,646 5,654 5,661 5,669 5,676 5,684 5,691 5,699 44,000 44,000 44,050 44,100 44,150 44,200 44,250 44,300 44,350 44,400 44,450 44,500 44,550 44,600 44,650 44,700 44,750 44,800 44,850 44,900 44,950 44,050 44,100 44,150 44,200 44,250 44,300 44,350 44,400 44,450 44,500 44,550 44,600 44,650 44,700 44,750 44,800 44,850 44,900 44,950 45,000 7,194 7,206 7,219 7,231 7,244 7,256 7,269 7,281 7,294 7,306 7,319 7,331 7,344 7,356 7,369 7,381 7,394 7,406 7,419 7,431 5,769 5,776 5,784 5,791 5,799 5,806 5,814 5,821 5,829 5,836 5,844 5,851 5,859 5,866 5,874 5,881 5,889 5,896 5,904 5,911 7,194 7,206 7,219 7,231 7,244 7,256 7,269 7,281 7,294 7,306 7,319 7,331 7,344 7,356 7,369 7,381 7,394 7,406 7,419 7,431 6,006 6,014 6,021 6,029 6,036 6,044 6,051 6,059 6,066 6,074 6,081 6,089 6,096 6,104 6,111 6,119 6,126 6,134 6,141 6,149 47,000 47,000 47,050 47,100 47,150 47,200 47,250 47,300 47,350 47,400 47,450 47,500 47,550 47,600 47,650 47,700 47,750 47,800 47,850 47,900 47,950 47,050 47,100 47,150 47,200 47,250 47,300 47,350 47,400 47,450 47,500 47,550 47,600 47,650 47,700 47,750 47,800 47,850 47,900 47,950 48,000 7,944 7,956 7,969 7,981 7,994 8,006 8,019 8,031 8,044 8,056 8,069 8,081 8,094 8,106 8,119 8,131 8,144 8,156 8,169 8,181 6,219 6,226 6,234 6,241 6,249 6,256 6,264 6,271 6,279 6,286 6,294 6,301 6,309 6,316 6,324 6,331 6,339 6,346 6,354 6,361 7,944 7,956 7,969 7,981 7,994 8,006 8,019 8,031 8,044 8,056 8,069 8,081 8,094 8,106 8,119 8,131 8,144 8,156 8,169 8,181 6,609 6,621 6,634 6,646 6,659 6,671 6,684 6,696 6,709 6,721 6,734 6,746 6,759 6,771 6,784 6,796 6,809 6,821 6,834 6,846 42,000 42,000 42,050 42,100 42,150 42,200 42,250 42,300 42,350 42,400 42,450 42,500 42,550 42,600 42,650 42,700 42,750 42,800 42,850 42,900 42,950 42,050 42,100 42,150 42,200 42,250 42,300 42,350 42,400 42,450 42,500 42,550 42,600 42,650 42,700 42,750 42,800 42,850 42,900 42,950 43,000 6,694 6,706 6,719 6,731 6,744 6,756 6,769 6,781 6,794 6,806 6,819 6,831 6,844 6,856 6,869 6,881 6,894 6,906 6,919 6,931 5,469 5,476 5,484 5,491 5,499 5,506 5,514 5,521 5,529 5,536 5,544 5,551 5,559 5,566 5,574 5,581 5,589 5,596 5,604 5,611 6,694 6,706 6,719 6,731 6,744 6,756 6,769 6,781 6,794 6,806 6,819 6,831 6,844 6,856 6,869 6,881 6,894 6,906 6,919 6,931 5,706 5,714 5,721 5,729 5,736 5,744 5,751 5,759 5,766 5,774 5,781 5,789 5,796 5,804 5,811 5,819 5,826 5,834 5,841 5,849 45,000 45,000 45,050 45,100 45,150 45,200 45,250 45,300 45,350 45,400 45,450 45,500 45,550 45,600 45,650 45,700 45,750 45,800 45,850 45,900 45,950 45,050 45,100 45,150 45,200 45,250 45,300 45,350 45,400 45,450 45,500 45,550 45,600 45,650 45,700 45,750 45,800 45,850 45,900 45,950 46,000 7,444 7,456 7,469 7,481 7,494 7,506 7,519 7,531 7,544 7,556 7,569 7,581 7,594 7,606 7,619 7,631 7,644 7,656 7,669 7,681 5,919 5,926 5,934 5,941 5,949 5,956 5,964 5,971 5,979 5,986 5,994 6,001 6,009 6,016 6,024 6,031 6,039 6,046 6,054 6,061 7,444 7,456 7,469 7,481 7,494 7,506 7,519 7,531 7,544 7,556 7,569 7,581 7,594 7,606 7,619 7,631 7,644 7,656 7,669 7,681 6,156 6,164 6,171 6,179 6,186 6,194 6,201 6,209 6,216 6,224 6,234 6,246 6,259 6,271 6,284 6,296 6,309 6,321 6,334 6,346 48,000 48,000 48,050 48,100 48,150 48,200 48,250 48,300 48,350 48,400 48,450 48,500 48,550 48,600 48,650 48,700 48,750 48,800 48,850 48,900 48,950 48,050 48,100 48,150 48,200 48,250 48,300 48,350 48,400 48,450 48,500 48,550 48,600 48,650 48,700 48,750 48,800 48,850 48,900 48,950 49,000 8,194 8,206 8,219 8,231 8,244 8,256 8,269 8,281 8,294 8,306 8,319 8,331 8,344 8,356 8,369 8,381 8,394 8,406 8,419 8,431 6,369 6,376 6,384 6,391 6,399 6,406 6,414 6,421 6,429 6,436 6,444 6,451 6,459 6,466 6,474 6,481 6,489 6,496 6,504 6,511 8,194 8,206 8,219 8,231 8,244 8,256 8,269 8,281 8,294 8,306 8,319 8,331 8,344 8,356 8,369 8,381 8,394 8,406 8,419 8,431 6,859 6,871 6,884 6,896 6,909 6,921 6,934 6,946 6,959 6,971 6,984 6,996 7,009 7,021 7,034 7,046 7,059 7,071 7,084 7,096 43,000 43,000 43,050 43,100 43,150 43,200 43,250 43,300 43,350 43,400 43,450 43,500 43,550 43,600 43,650 43,700 43,750 43,800 43,850 43,900 43,950 43,050 43,100 43,150 43,200 43,250 43,300 43,350 43,400 43,450 43,500 43,550 43,600 43,650 43,700 43,750 43,800 43,850 43,900 43,950 44,000 6,944 6,956 6,969 6,981 6,994 7,006 7,019 7,031 7,044 7,056 7,069 7,081 7,094 7,106 7,119 7,131 7,144 7,156 7,169 7,181 5,619 5,626 5,634 5,641 5,649 5,656 5,664 5,671 5,679 5,686 5,694 5,701 5,709 5,716 5,724 5,731 5,739 5,746 5,754 5,761 6,944 6,956 6,969 6,981 6,994 7,006 7,019 7,031 7,044 7,056 7,069 7,081 7,094 7,106 7,119 7,131 7,144 7,156 7,169 7,181 5,856 5,864 5,871 5,879 5,886 5,894 5,901 5,909 5,916 5,924 5,931 5,939 5,946 5,954 5,961 5,969 5,976 5,984 5,991 5,999 46,000 46,000 46,050 46,100 46,150 46,200 46,250 46,300 46,350 46,400 46,450 46,500 46,550 46,600 46,650 46,700 46,750 46,800 46,850 46,900 46,950 46,050 46,100 46,150 46,200 46,250 46,300 46,350 46,400 46,450 46,500 46,550 46,600 46,650 46,700 46,750 46,800 46,850 46,900 46,950 47,000 7,694 7,706 7,719 7,731 7,744 7,756 7,769 7,781 7,794 7,806 7,819 7,831 7,844 7,856 7,869 7,881 7,894 7,906 7,919 7,931 6,069 6,076 6,084 6,091 6,099 6,106 6,114 6,121 6,129 6,136 6,144 6,151 6,159 6,166 6,174 6,181 6,189 6,196 6,204 6,211 7,694 7,706 7,719 7,731 7,744 7,756 7,769 7,781 7,794 7,806 7,819 7,831 7,844 7,856 7,869 7,881 7,894 7,906 7,919 7,931 6,359 6,371 6,384 6,396 6,409 6,421 6,434 6,446 6,459 6,471 6,484 6,496 6,509 6,521 6,534 6,546 6,559 6,571 6,584 6,596 49,000 49,000 49,050 49,100 49,150 49,200 49,250 49,300 49,350 49,400 49,450 49,500 49,550 49,600 49,650 49,700 49,750 49,800 49,850 49,900 49,950 49,050 49,100 49,150 49,200 49,250 49,300 49,350 49,400 49,450 49,500 49,550 49,600 49,650 49,700 49,750 49,800 49,850 49,900 49,950 50,000 8,444 8,456 8,469 8,481 8,494 8,506 8,519 8,531 8,544 8,556 8,569 8,581 8,594 8,606 8,619 8,631 8,644 8,656 8,669 8,681 6,519 6,526 6,534 6,541 6,549 6,556 6,564 6,571 6,579 6,586 6,594 6,601 6,609 6,616 6,624 6,631 6,639 6,646 6,654 6,661 8,444 8,456 8,469 8,481 8,494 8,506 8,519 8,531 8,544 8,556 8,569 8,581 8,594 8,606 8,619 8,631 8,644 8,656 8,669 8,681 7,109 7,121 7,134 7,146 7,159 7,171 7,184 7,196 7,209 7,221 7,234 7,246 7,259 7,271 7,284 7,296 7,309 7,321 7,334 7,346 * This column must also be used by a qualifying widow(er). (Continued on page 83) - 82 - 2009 Tax Table – Continued If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 50,000 50,000 50,050 50,100 50,150 50,200 50,250 50,300 50,350 50,400 50,450 50,500 50,550 50,600 50,650 50,700 50,750 50,800 50,850 50,900 50,950 50,050 50,100 50,150 50,200 50,250 50,300 50,350 50,400 50,450 50,500 50,550 50,600 50,650 50,700 50,750 50,800 50,850 50,900 50,950 51,000 8,694 8,706 8,719 8,731 8,744 8,756 8,769 8,781 8,794 8,806 8,819 8,831 8,844 8,856 8,869 8,881 8,894 8,906 8,919 8,931 6,669 6,676 6,684 6,691 6,699 6,706 6,714 6,721 6,729 6,736 6,744 6,751 6,759 6,766 6,774 6,781 6,789 6,796 6,804 6,811 8,694 8,706 8,719 8,731 8,744 8,756 8,769 8,781 8,794 8,806 8,819 8,831 8,844 8,856 8,869 8,881 8,894 8,906 8,919 8,931 7,359 7,371 7,384 7,396 7,409 7,421 7,434 7,446 7,459 7,471 7,484 7,496 7,509 7,521 7,534 7,546 7,559 7,571 7,584 7,596 53,000 53,000 53,050 53,100 53,150 53,200 53,250 53,300 53,350 53,400 53,450 53,500 53,550 53,600 53,650 53,700 53,750 53,800 53,850 53,900 53,950 53,050 53,100 53,150 53,200 53,250 53,300 53,350 53,400 53,450 53,500 53,550 53,600 53,650 53,700 53,750 53,800 53,850 53,900 53,950 54,000 9,444 9,456 9,469 9,481 9,494 9,506 9,519 9,531 9,544 9,556 9,569 9,581 9,594 9,606 9,619 9,631 9,644 9,656 9,669 9,681 7,119 7,126 7,134 7,141 7,149 7,156 7,164 7,171 7,179 7,186 7,194 7,201 7,209 7,216 7,224 7,231 7,239 7,246 7,254 7,261 9,444 9,456 9,469 9,481 9,494 9,506 9,519 9,531 9,544 9,556 9,569 9,581 9,594 9,606 9,619 9,631 9,644 9,656 9,669 9,681 8,109 8,121 8,134 8,146 8,159 8,171 8,184 8,196 8,209 8,221 8,234 8,246 8,259 8,271 8,284 8,296 8,309 8,321 8,334 8,346 56,000 56,000 56,050 56,100 56,150 56,200 56,250 56,300 56,350 56,400 56,450 56,500 56,550 56,600 56,650 56,700 56,750 56,800 56,850 56,900 56,950 56,050 56,100 56,150 56,200 56,250 56,300 56,350 56,400 56,450 56,500 56,550 56,600 56,650 56,700 56,750 56,800 56,850 56,900 56,950 57,000 10,194 10,206 10,219 10,231 10,244 10,256 10,269 10,281 10,294 10,306 10,319 10,331 10,344 10,356 10,369 10,381 10,394 10,406 10,419 10,431 7,569 7,576 7,584 7,591 7,599 7,606 7,614 7,621 7,629 7,636 7,644 7,651 7,659 7,666 7,674 7,681 7,689 7,696 7,704 7,711 10,194 10,206 10,219 10,231 10,244 10,256 10,269 10,281 10,294 10,306 10,319 10,331 10,344 10,356 10,369 10,381 10,394 10,406 10,419 10,431 8,859 8,871 8,884 8,896 8,909 8,921 8,934 8,946 8,959 8,971 8,984 8,996 9,009 9,021 9,034 9,046 9,059 9,071 9,084 9,096 51,000 51,000 51,050 51,100 51,150 51,200 51,250 51,300 51,350 51,400 51,450 51,500 51,550 51,600 51,650 51,700 51,750 51,800 51,850 51,900 51,950 51,050 51,100 51,150 51,200 51,250 51,300 51,350 51,400 51,450 51,500 51,550 51,600 51,650 51,700 51,750 51,800 51,850 51,900 51,950 52,000 8,944 8,956 8,969 8,981 8,994 9,006 9,019 9,031 9,044 9,056 9,069 9,081 9,094 9,106 9,119 9,131 9,144 9,156 9,169 9,181 6,819 6,826 6,834 6,841 6,849 6,856 6,864 6,871 6,879 6,886 6,894 6,901 6,909 6,916 6,924 6,931 6,939 6,946 6,954 6,961 8,944 8,956 8,969 8,981 8,994 9,006 9,019 9,031 9,044 9,056 9,069 9,081 9,094 9,106 9,119 9,131 9,144 9,156 9,169 9,181 7,609 7,621 7,634 7,646 7,659 7,671 7,684 7,696 7,709 7,721 7,734 7,746 7,759 7,771 7,784 7,796 7,809 7,821 7,834 7,846 54,000 54,000 54,050 54,100 54,150 54,200 54,250 54,300 54,350 54,400 54,450 54,500 54,550 54,600 54,650 54,700 54,750 54,800 54,850 54,900 54,950 54,050 54,100 54,150 54,200 54,250 54,300 54,350 54,400 54,450 54,500 54,550 54,600 54,650 54,700 54,750 54,800 54,850 54,900 54,950 55,000 9,694 9,706 9,719 9,731 9,744 9,756 9,769 9,781 9,794 9,806 9,819 9,831 9,844 9,856 9,869 9,881 9,894 9,906 9,919 9,931 7,269 7,276 7,284 7,291 7,299 7,306 7,314 7,321 7,329 7,336 7,344 7,351 7,359 7,366 7,374 7,381 7,389 7,396 7,404 7,411 9,694 9,706 9,719 9,731 9,744 9,756 9,769 9,781 9,794 9,806 9,819 9,831 9,844 9,856 9,869 9,881 9,894 9,906 9,919 9,931 8,359 8,371 8,384 8,396 8,409 8,421 8,434 8,446 8,459 8,471 8,484 8,496 8,509 8,521 8,534 8,546 8,559 8,571 8,584 8,596 57,000 57,000 57,050 57,100 57,150 57,200 57,250 57,300 57,350 57,400 57,450 57,500 57,550 57,600 57,650 57,700 57,750 57,800 57,850 57,900 57,950 57,050 57,100 57,150 57,200 57,250 57,300 57,350 57,400 57,450 57,500 57,550 57,600 57,650 57,700 57,750 57,800 57,850 57,900 57,950 58,000 10,444 10,456 10,469 10,481 10,494 10,506 10,519 10,531 10,544 10,556 10,569 10,581 10,594 10,606 10,619 10,631 10,644 10,656 10,669 10,681 7,719 7,726 7,734 7,741 7,749 7,756 7,764 7,771 7,779 7,786 7,794 7,801 7,809 7,816 7,824 7,831 7,839 7,846 7,854 7,861 10,444 10,456 10,469 10,481 10,494 10,506 10,519 10,531 10,544 10,556 10,569 10,581 10,594 10,606 10,619 10,631 10,644 10,656 10,669 10,681 9,109 9,121 9,134 9,146 9,159 9,171 9,184 9,196 9,209 9,221 9,234 9,246 9,259 9,271 9,284 9,296 9,309 9,321 9,334 9,346 52,000 52,000 52,050 52,100 52,150 52,200 52,250 52,300 52,350 52,400 52,450 52,500 52,550 52,600 52,650 52,700 52,750 52,800 52,850 52,900 52,950 52,050 52,100 52,150 52,200 52,250 52,300 52,350 52,400 52,450 52,500 52,550 52,600 52,650 52,700 52,750 52,800 52,850 52,900 52,950 53,000 9,194 9,206 9,219 9,231 9,244 9,256 9,269 9,281 9,294 9,306 9,319 9,331 9,344 9,356 9,369 9,381 9,394 9,406 9,419 9,431 6,969 6,976 6,984 6,991 6,999 7,006 7,014 7,021 7,029 7,036 7,044 7,051 7,059 7,066 7,074 7,081 7,089 7,096 7,104 7,111 9,194 9,206 9,219 9,231 9,244 9,256 9,269 9,281 9,294 9,306 9,319 9,331 9,344 9,356 9,369 9,381 9,394 9,406 9,419 9,431 7,859 7,871 7,884 7,896 7,909 7,921 7,934 7,946 7,959 7,971 7,984 7,996 8,009 8,021 8,034 8,046 8,059 8,071 8,084 8,096 55,000 55,000 55,050 55,100 55,150 55,200 55,250 55,300 55,350 55,400 55,450 55,500 55,550 55,600 55,650 55,700 55,750 55,800 55,850 55,900 55,950 55,050 55,100 55,150 55,200 55,250 55,300 55,350 55,400 55,450 55,500 55,550 55,600 55,650 55,700 55,750 55,800 55,850 55,900 55,950 56,000 9,944 9,956 9,969 9,981 9,994 10,006 10,019 10,031 10,044 10,056 10,069 10,081 10,094 10,106 10,119 10,131 10,144 10,156 10,169 10,181 7,419 7,426 7,434 7,441 7,449 7,456 7,464 7,471 7,479 7,486 7,494 7,501 7,509 7,516 7,524 7,531 7,539 7,546 7,554 7,561 9,944 9,956 9,969 9,981 9,994 10,006 10,019 10,031 10,044 10,056 10,069 10,081 10,094 10,106 10,119 10,131 10,144 10,156 10,169 10,181 8,609 8,621 8,634 8,646 8,659 8,671 8,684 8,696 8,709 8,721 8,734 8,746 8,759 8,771 8,784 8,796 8,809 8,821 8,834 8,846 58,000 58,000 58,050 58,100 58,150 58,200 58,250 58,300 58,350 58,400 58,450 58,500 58,550 58,600 58,650 58,700 58,750 58,800 58,850 58,900 58,950 58,050 58,100 58,150 58,200 58,250 58,300 58,350 58,400 58,450 58,500 58,550 58,600 58,650 58,700 58,750 58,800 58,850 58,900 58,950 59,000 10,694 10,706 10,719 10,731 10,744 10,756 10,769 10,781 10,794 10,806 10,819 10,831 10,844 10,856 10,869 10,881 10,894 10,906 10,919 10,931 7,869 7,876 7,884 7,891 7,899 7,906 7,914 7,921 7,929 7,936 7,944 7,951 7,959 7,966 7,974 7,981 7,989 7,996 8,004 8,011 10,694 10,706 10,719 10,731 10,744 10,756 10,769 10,781 10,794 10,806 10,819 10,831 10,844 10,856 10,869 10,881 10,894 10,906 10,919 10,931 9,359 9,371 9,384 9,396 9,409 9,421 9,434 9,446 9,459 9,471 9,484 9,496 9,509 9,521 9,534 9,546 9,559 9,571 9,584 9,596 * This column must also be used by a qualifying widow(er). (Continued on page 84) - 83 - 2009 Tax Table – Continued If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 59,000 59,000 59,050 59,100 59,150 59,200 59,250 59,300 59,350 59,400 59,450 59,500 59,550 59,600 59,650 59,700 59,750 59,800 59,850 59,900 59,950 59,050 59,100 59,150 59,200 59,250 59,300 59,350 59,400 59,450 59,500 59,550 59,600 59,650 59,700 59,750 59,800 59,850 59,900 59,950 60,000 10,944 10,956 10,969 10,981 10,994 11,006 11,019 11,031 11,044 11,056 11,069 11,081 11,094 11,106 11,119 11,131 11,144 11,156 11,169 11,181 8,019 8,026 8,034 8,041 8,049 8,056 8,064 8,071 8,079 8,086 8,094 8,101 8,109 8,116 8,124 8,131 8,139 8,146 8,154 8,161 10,944 10,956 10,969 10,981 10,994 11,006 11,019 11,031 11,044 11,056 11,069 11,081 11,094 11,106 11,119 11,131 11,144 11,156 11,169 11,181 9,609 9,621 9,634 9,646 9,659 9,671 9,684 9,696 9,709 9,721 9,734 9,746 9,759 9,771 9,784 9,796 9,809 9,821 9,834 9,846 62,000 62,000 62,050 62,100 62,150 62,200 62,250 62,300 62,350 62,400 62,450 62,500 62,550 62,600 62,650 62,700 62,750 62,800 62,850 62,900 62,950 62,050 62,100 62,150 62,200 62,250 62,300 62,350 62,400 62,450 62,500 62,550 62,600 62,650 62,700 62,750 62,800 62,850 62,900 62,950 63,000 11,694 11,706 11,719 11,731 11,744 11,756 11,769 11,781 11,794 11,806 11,819 11,831 11,844 11,856 11,869 11,881 11,894 11,906 11,919 11,931 8,469 8,476 8,484 8,491 8,499 8,506 8,514 8,521 8,529 8,536 8,544 8,551 8,559 8,566 8,574 8,581 8,589 8,596 8,604 8,611 11,694 11,706 11,719 11,731 11,744 11,756 11,769 11,781 11,794 11,806 11,819 11,831 11,844 11,856 11,869 11,881 11,894 11,906 11,919 11,931 10,359 10,371 10,384 10,396 10,409 10,421 10,434 10,446 10,459 10,471 10,484 10,496 10,509 10,521 10,534 10,546 10,559 10,571 10,584 10,596 65,000 65,000 65,050 65,100 65,150 65,200 65,250 65,300 65,350 65,400 65,450 65,500 65,550 65,600 65,650 65,700 65,750 65,800 65,850 65,900 65,950 65,050 65,100 65,150 65,200 65,250 65,300 65,350 65,400 65,450 65,500 65,550 65,600 65,650 65,700 65,750 65,800 65,850 65,900 65,950 66,000 12,444 12,456 12,469 12,481 12,494 12,506 12,519 12,531 12,544 12,556 12,569 12,581 12,594 12,606 12,619 12,631 12,644 12,656 12,669 12,681 8,919 8,926 8,934 8,941 8,949 8,956 8,964 8,971 8,979 8,986 8,994 9,001 9,009 9,016 9,024 9,031 9,039 9,046 9,054 9,061 12,444 12,456 12,469 12,481 12,494 12,506 12,519 12,531 12,544 12,556 12,569 12,581 12,594 12,606 12,619 12,631 12,644 12,656 12,669 12,681 11,109 11,121 11,134 11,146 11,159 11,171 11,184 11,196 11,209 11,221 11,234 11,246 11,259 11,271 11,284 11,296 11,309 11,321 11,334 11,346 60,000 60,000 60,050 60,100 60,150 60,200 60,250 60,300 60,350 60,400 60,450 60,500 60,550 60,600 60,650 60,700 60,750 60,800 60,850 60,900 60,950 60,050 60,100 60,150 60,200 60,250 60,300 60,350 60,400 60,450 60,500 60,550 60,600 60,650 60,700 60,750 60,800 60,850 60,900 60,950 61,000 11,194 11,206 11,219 11,231 11,244 11,256 11,269 11,281 11,294 11,306 11,319 11,331 11,344 11,356 11,369 11,381 11,394 11,406 11,419 11,431 8,169 8,176 8,184 8,191 8,199 8,206 8,214 8,221 8,229 8,236 8,244 8,251 8,259 8,266 8,274 8,281 8,289 8,296 8,304 8,311 11,194 11,206 11,219 11,231 11,244 11,256 11,269 11,281 11,294 11,306 11,319 11,331 11,344 11,356 11,369 11,381 11,394 11,406 11,419 11,431 9,859 9,871 9,884 9,896 9,909 9,921 9,934 9,946 9,959 9,971 9,984 9,996 10,009 10,021 10,034 10,046 10,059 10,071 10,084 10,096 63,000 63,000 63,050 63,100 63,150 63,200 63,250 63,300 63,350 63,400 63,450 63,500 63,550 63,600 63,650 63,700 63,750 63,800 63,850 63,900 63,950 63,050 63,100 63,150 63,200 63,250 63,300 63,350 63,400 63,450 63,500 63,550 63,600 63,650 63,700 63,750 63,800 63,850 63,900 63,950 64,000 11,944 11,956 11,969 11,981 11,994 12,006 12,019 12,031 12,044 12,056 12,069 12,081 12,094 12,106 12,119 12,131 12,144 12,156 12,169 12,181 8,619 8,626 8,634 8,641 8,649 8,656 8,664 8,671 8,679 8,686 8,694 8,701 8,709 8,716 8,724 8,731 8,739 8,746 8,754 8,761 11,944 11,956 11,969 11,981 11,994 12,006 12,019 12,031 12,044 12,056 12,069 12,081 12,094 12,106 12,119 12,131 12,144 12,156 12,169 12,181 10,609 10,621 10,634 10,646 10,659 10,671 10,684 10,696 10,709 10,721 10,734 10,746 10,759 10,771 10,784 10,796 10,809 10,821 10,834 10,846 66,000 66,000 66,050 66,100 66,150 66,200 66,250 66,300 66,350 66,400 66,450 66,500 66,550 66,600 66,650 66,700 66,750 66,800 66,850 66,900 66,950 66,050 66,100 66,150 66,200 66,250 66,300 66,350 66,400 66,450 66,500 66,550 66,600 66,650 66,700 66,750 66,800 66,850 66,900 66,950 67,000 12,694 12,706 12,719 12,731 12,744 12,756 12,769 12,781 12,794 12,806 12,819 12,831 12,844 12,856 12,869 12,881 12,894 12,906 12,919 12,931 9,069 9,076 9,084 9,091 9,099 9,106 9,114 9,121 9,129 9,136 9,144 9,151 9,159 9,166 9,174 9,181 9,189 9,196 9,204 9,211 12,694 12,706 12,719 12,731 12,744 12,756 12,769 12,781 12,794 12,806 12,819 12,831 12,844 12,856 12,869 12,881 12,894 12,906 12,919 12,931 11,359 11,371 11,384 11,396 11,409 11,421 11,434 11,446 11,459 11,471 11,484 11,496 11,509 11,521 11,534 11,546 11,559 11,571 11,584 11,596 61,000 61,000 61,050 61,100 61,150 61,200 61,250 61,300 61,350 61,400 61,450 61,500 61,550 61,600 61,650 61,700 61,750 61,800 61,850 61,900 61,950 61,050 61,100 61,150 61,200 61,250 61,300 61,350 61,400 61,450 61,500 61,550 61,600 61,650 61,700 61,750 61,800 61,850 61,900 61,950 62,000 11,444 11,456 11,469 11,481 11,494 11,506 11,519 11,531 11,544 11,556 11,569 11,581 11,594 11,606 11,619 11,631 11,644 11,656 11,669 11,681 8,319 8,326 8,334 8,341 8,349 8,356 8,364 8,371 8,379 8,386 8,394 8,401 8,409 8,416 8,424 8,431 8,439 8,446 8,454 8,461 11,444 11,456 11,469 11,481 11,494 11,506 11,519 11,531 11,544 11,556 11,569 11,581 11,594 11,606 11,619 11,631 11,644 11,656 11,669 11,681 10,109 10,121 10,134 10,146 10,159 10,171 10,184 10,196 10,209 10,221 10,234 10,246 10,259 10,271 10,284 10,296 10,309 10,321 10,334 10,346 64,000 64,000 64,050 64,100 64,150 64,200 64,250 64,300 64,350 64,400 64,450 64,500 64,550 64,600 64,650 64,700 64,750 64,800 64,850 64,900 64,950 64,050 64,100 64,150 64,200 64,250 64,300 64,350 64,400 64,450 64,500 64,550 64,600 64,650 64,700 64,750 64,800 64,850 64,900 64,950 65,000 12,194 12,206 12,219 12,231 12,244 12,256 12,269 12,281 12,294 12,306 12,319 12,331 12,344 12,356 12,369 12,381 12,394 12,406 12,419 12,431 8,769 8,776 8,784 8,791 8,799 8,806 8,814 8,821 8,829 8,836 8,844 8,851 8,859 8,866 8,874 8,881 8,889 8,896 8,904 8,911 12,194 12,206 12,219 12,231 12,244 12,256 12,269 12,281 12,294 12,306 12,319 12,331 12,344 12,356 12,369 12,381 12,394 12,406 12,419 12,431 10,859 10,871 10,884 10,896 10,909 10,921 10,934 10,946 10,959 10,971 10,984 10,996 11,009 11,021 11,034 11,046 11,059 11,071 11,084 11,096 67,000 67,000 67,050 67,100 67,150 67,200 67,250 67,300 67,350 67,400 67,450 67,500 67,550 67,600 67,650 67,700 67,750 67,800 67,850 67,900 67,950 67,050 67,100 67,150 67,200 67,250 67,300 67,350 67,400 67,450 67,500 67,550 67,600 67,650 67,700 67,750 67,800 67,850 67,900 67,950 68,000 12,944 12,956 12,969 12,981 12,994 13,006 13,019 13,031 13,044 13,056 13,069 13,081 13,094 13,106 13,119 13,131 13,144 13,156 13,169 13,181 9,219 9,226 9,234 9,241 9,249 9,256 9,264 9,271 9,279 9,286 9,294 9,301 9,309 9,316 9,324 9,331 9,339 9,346 9,356 9,369 12,944 12,956 12,969 12,981 12,994 13,006 13,019 13,031 13,044 13,056 13,069 13,081 13,094 13,106 13,119 13,131 13,144 13,156 13,169 13,181 11,609 11,621 11,634 11,646 11,659 11,671 11,684 11,696 11,709 11,721 11,734 11,746 11,759 11,771 11,784 11,796 11,809 11,821 11,834 11,846 * This column must also be used by a qualifying widow(er). (Continued on page 85) - 84 - 2009 Tax Table – Continued If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 68,000 68,000 68,050 68,100 68,150 68,200 68,250 68,300 68,350 68,400 68,450 68,500 68,550 68,600 68,650 68,700 68,750 68,800 68,850 68,900 68,950 68,050 68,100 68,150 68,200 68,250 68,300 68,350 68,400 68,450 68,500 68,550 68,600 68,650 68,700 68,750 68,800 68,850 68,900 68,950 69,000 13,194 13,206 13,219 13,231 13,244 13,256 13,269 13,281 13,294 13,306 13,319 13,331 13,344 13,356 13,369 13,381 13,394 13,406 13,419 13,431 9,381 9,394 9,406 9,419 9,431 9,444 9,456 9,469 9,481 9,494 9,506 9,519 9,531 9,544 9,556 9,569 9,581 9,594 9,606 9,619 13,194 13,206 13,219 13,231 13,244 13,256 13,269 13,281 13,294 13,306 13,319 13,333 13,347 13,361 13,375 13,389 13,403 13,417 13,431 13,445 11,859 11,871 11,884 11,896 11,909 11,921 11,934 11,946 11,959 11,971 11,984 11,996 12,009 12,021 12,034 12,046 12,059 12,071 12,084 12,096 71,000 71,000 71,050 71,100 71,150 71,200 71,250 71,300 71,350 71,400 71,450 71,500 71,550 71,600 71,650 71,700 71,750 71,800 71,850 71,900 71,950 71,050 71,100 71,150 71,200 71,250 71,300 71,350 71,400 71,450 71,500 71,550 71,600 71,650 71,700 71,750 71,800 71,850 71,900 71,950 72,000 13,944 13,956 13,969 13,981 13,994 14,006 14,019 14,031 14,044 14,056 14,069 14,081 14,094 14,106 14,119 14,131 14,144 14,156 14,169 14,181 10,131 10,144 10,156 10,169 10,181 10,194 10,206 10,219 10,231 10,244 10,256 10,269 10,281 10,294 10,306 10,319 10,331 10,344 10,356 10,369 14,019 14,033 14,047 14,061 14,075 14,089 14,103 14,117 14,131 14,145 14,159 14,173 14,187 14,201 14,215 14,229 14,243 14,257 14,271 14,285 12,609 12,621 12,634 12,646 12,659 12,671 12,684 12,696 12,709 12,721 12,734 12,746 12,759 12,771 12,784 12,796 12,809 12,821 12,834 12,846 74,000 74,000 74,050 74,100 74,150 74,200 74,250 74,300 74,350 74,400 74,450 74,500 74,550 74,600 74,650 74,700 74,750 74,800 74,850 74,900 74,950 74,050 74,100 74,150 74,200 74,250 74,300 74,350 74,400 74,450 74,500 74,550 74,600 74,650 74,700 74,750 74,800 74,850 74,900 74,950 75,000 14,694 14,706 14,719 14,731 14,744 14,756 14,769 14,781 14,794 14,806 14,819 14,831 14,844 14,856 14,869 14,881 14,894 14,906 14,919 14,931 10,881 10,894 10,906 10,919 10,931 10,944 10,956 10,969 10,981 10,994 11,006 11,019 11,031 11,044 11,056 11,069 11,081 11,094 11,106 11,119 14,859 14,873 14,887 14,901 14,915 14,929 14,943 14,957 14,971 14,985 14,999 15,013 15,027 15,041 15,055 15,069 15,083 15,097 15,111 15,125 13,359 13,371 13,384 13,396 13,409 13,421 13,434 13,446 13,459 13,471 13,484 13,496 13,509 13,521 13,534 13,546 13,559 13,571 13,584 13,596 69,000 69,000 69,050 69,100 69,150 69,200 69,250 69,300 69,350 69,400 69,450 69,500 69,550 69,600 69,650 69,700 69,750 69,800 69,850 69,900 69,950 69,050 69,100 69,150 69,200 69,250 69,300 69,350 69,400 69,450 69,500 69,550 69,600 69,650 69,700 69,750 69,800 69,850 69,900 69,950 70,000 13,444 13,456 13,469 13,481 13,494 13,506 13,519 13,531 13,544 13,556 13,569 13,581 13,594 13,606 13,619 13,631 13,644 13,656 13,669 13,681 9,631 9,644 9,656 9,669 9,681 9,694 9,706 9,719 9,731 9,744 9,756 9,769 9,781 9,794 9,806 9,819 9,831 9,844 9,856 9,869 13,459 13,473 13,487 13,501 13,515 13,529 13,543 13,557 13,571 13,585 13,599 13,613 13,627 13,641 13,655 13,669 13,683 13,697 13,711 13,725 12,109 12,121 12,134 12,146 12,159 12,171 12,184 12,196 12,209 12,221 12,234 12,246 12,259 12,271 12,284 12,296 12,309 12,321 12,334 12,346 72,000 72,000 72,050 72,100 72,150 72,200 72,250 72,300 72,350 72,400 72,450 72,500 72,550 72,600 72,650 72,700 72,750 72,800 72,850 72,900 72,950 72,050 72,100 72,150 72,200 72,250 72,300 72,350 72,400 72,450 72,500 72,550 72,600 72,650 72,700 72,750 72,800 72,850 72,900 72,950 73,000 14,194 14,206 14,219 14,231 14,244 14,256 14,269 14,281 14,294 14,306 14,319 14,331 14,344 14,356 14,369 14,381 14,394 14,406 14,419 14,431 10,381 10,394 10,406 10,419 10,431 10,444 10,456 10,469 10,481 10,494 10,506 10,519 10,531 10,544 10,556 10,569 10,581 10,594 10,606 10,619 14,299 14,313 14,327 14,341 14,355 14,369 14,383 14,397 14,411 14,425 14,439 14,453 14,467 14,481 14,495 14,509 14,523 14,537 14,551 14,565 12,859 12,871 12,884 12,896 12,909 12,921 12,934 12,946 12,959 12,971 12,984 12,996 13,009 13,021 13,034 13,046 13,059 13,071 13,084 13,096 75,000 75,000 75,050 75,100 75,150 75,200 75,250 75,300 75,350 75,400 75,450 75,500 75,550 75,600 75,650 75,700 75,750 75,800 75,850 75,900 75,950 75,050 75,100 75,150 75,200 75,250 75,300 75,350 75,400 75,450 75,500 75,550 75,600 75,650 75,700 75,750 75,800 75,850 75,900 75,950 76,000 14,944 14,956 14,969 14,981 14,994 15,006 15,019 15,031 15,044 15,056 15,069 15,081 15,094 15,106 15,119 15,131 15,144 15,156 15,169 15,181 11,131 11,144 11,156 11,169 11,181 11,194 11,206 11,219 11,231 11,244 11,256 11,269 11,281 11,294 11,306 11,319 11,331 11,344 11,356 11,369 15,139 15,153 15,167 15,181 15,195 15,209 15,223 15,237 15,251 15,265 15,279 15,293 15,307 15,321 15,335 15,349 15,363 15,377 15,391 15,405 13,609 13,621 13,634 13,646 13,659 13,671 13,684 13,696 13,709 13,721 13,734 13,746 13,759 13,771 13,784 13,796 13,809 13,821 13,834 13,846 70,000 70,000 70,050 70,100 70,150 70,200 70,250 70,300 70,350 70,400 70,450 70,500 70,550 70,600 70,650 70,700 70,750 70,800 70,850 70,900 70,950 70,050 70,100 70,150 70,200 70,250 70,300 70,350 70,400 70,450 70,500 70,550 70,600 70,650 70,700 70,750 70,800 70,850 70,900 70,950 71,000 13,694 13,706 13,719 13,731 13,744 13,756 13,769 13,781 13,794 13,806 13,819 13,831 13,844 13,856 13,869 13,881 13,894 13,906 13,919 13,931 9,881 9,894 9,906 9,919 9,931 9,944 9,956 9,969 9,981 9,994 10,006 10,019 10,031 10,044 10,056 10,069 10,081 10,094 10,106 10,119 13,739 13,753 13,767 13,781 13,795 13,809 13,823 13,837 13,851 13,865 13,879 13,893 13,907 13,921 13,935 13,949 13,963 13,977 13,991 14,005 12,359 12,371 12,384 12,396 12,409 12,421 12,434 12,446 12,459 12,471 12,484 12,496 12,509 12,521 12,534 12,546 12,559 12,571 12,584 12,596 73,000 73,000 73,050 73,100 73,150 73,200 73,250 73,300 73,350 73,400 73,450 73,500 73,550 73,600 73,650 73,700 73,750 73,800 73,850 73,900 73,950 73,050 73,100 73,150 73,200 73,250 73,300 73,350 73,400 73,450 73,500 73,550 73,600 73,650 73,700 73,750 73,800 73,850 73,900 73,950 74,000 14,444 14,456 14,469 14,481 14,494 14,506 14,519 14,531 14,544 14,556 14,569 14,581 14,594 14,606 14,619 14,631 14,644 14,656 14,669 14,681 10,631 10,644 10,656 10,669 10,681 10,694 10,706 10,719 10,731 10,744 10,756 10,769 10,781 10,794 10,806 10,819 10,831 10,844 10,856 10,869 14,579 14,593 14,607 14,621 14,635 14,649 14,663 14,677 14,691 14,705 14,719 14,733 14,747 14,761 14,775 14,789 14,803 14,817 14,831 14,845 13,109 13,121 13,134 13,146 13,159 13,171 13,184 13,196 13,209 13,221 13,234 13,246 13,259 13,271 13,284 13,296 13,309 13,321 13,334 13,346 76,000 76,000 76,050 76,100 76,150 76,200 76,250 76,300 76,350 76,400 76,450 76,500 76,550 76,600 76,650 76,700 76,750 76,800 76,850 76,900 76,950 76,050 76,100 76,150 76,200 76,250 76,300 76,350 76,400 76,450 76,500 76,550 76,600 76,650 76,700 76,750 76,800 76,850 76,900 76,950 77,000 15,194 15,206 15,219 15,231 15,244 15,256 15,269 15,281 15,294 15,306 15,319 15,331 15,344 15,356 15,369 15,381 15,394 15,406 15,419 15,431 11,381 11,394 11,406 11,419 11,431 11,444 11,456 11,469 11,481 11,494 11,506 11,519 11,531 11,544 11,556 11,569 11,581 11,594 11,606 11,619 15,419 15,433 15,447 15,461 15,475 15,489 15,503 15,517 15,531 15,545 15,559 15,573 15,587 15,601 15,615 15,629 15,643 15,657 15,671 15,685 13,859 13,871 13,884 13,896 13,909 13,921 13,934 13,946 13,959 13,971 13,984 13,996 14,009 14,021 14,034 14,046 14,059 14,071 14,084 14,096 * This column must also be used by a qualifying widow(er). (Continued on page 86) - 85 - 2009 Tax Table – Continued If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 77,000 77,000 77,050 77,100 77,150 77,200 77,250 77,300 77,350 77,400 77,450 77,500 77,550 77,600 77,650 77,700 77,750 77,800 77,850 77,900 77,950 77,050 77,100 77,150 77,200 77,250 77,300 77,350 77,400 77,450 77,500 77,550 77,600 77,650 77,700 77,750 77,800 77,850 77,900 77,950 78,000 15,444 15,456 15,469 15,481 15,494 15,506 15,519 15,531 15,544 15,556 15,569 15,581 15,594 15,606 15,619 15,631 15,644 15,656 15,669 15,681 11,631 11,644 11,656 11,669 11,681 11,694 11,706 11,719 11,731 11,744 11,756 11,769 11,781 11,794 11,806 11,819 11,831 11,844 11,856 11,869 15,699 15,713 15,727 15,741 15,755 15,769 15,783 15,797 15,811 15,825 15,839 15,853 15,867 15,881 15,895 15,909 15,923 15,937 15,951 15,965 14,109 14,121 14,134 14,146 14,159 14,171 14,184 14,196 14,209 14,221 14,234 14,246 14,259 14,271 14,284 14,296 14,309 14,321 14,334 14,346 80,000 80,000 80,050 80,100 80,150 80,200 80,250 80,300 80,350 80,400 80,450 80,500 80,550 80,600 80,650 80,700 80,750 80,800 80,850 80,900 80,950 80,050 80,100 80,150 80,200 80,250 80,300 80,350 80,400 80,450 80,500 80,550 80,600 80,650 80,700 80,750 80,800 80,850 80,900 80,950 81,000 16,194 16,206 16,219 16,231 16,244 16,256 16,269 16,281 16,294 16,306 16,319 16,331 16,344 16,356 16,369 16,381 16,394 16,406 16,419 16,431 12,381 12,394 12,406 12,419 12,431 12,444 12,456 12,469 12,481 12,494 12,506 12,519 12,531 12,544 12,556 12,569 12,581 12,594 12,606 12,619 16,539 16,553 16,567 16,581 16,595 16,609 16,623 16,637 16,651 16,665 16,679 16,693 16,707 16,721 16,735 16,749 16,763 16,777 16,791 16,805 14,859 14,871 14,884 14,896 14,909 14,921 14,934 14,946 14,959 14,971 14,984 14,996 15,009 15,021 15,034 15,046 15,059 15,071 15,084 15,096 83,000 83,000 83,050 83,100 83,150 83,200 83,250 83,300 83,350 83,400 83,450 83,500 83,550 83,600 83,650 83,700 83,750 83,800 83,850 83,900 83,950 83,050 83,100 83,150 83,200 83,250 83,300 83,350 83,400 83,450 83,500 83,550 83,600 83,650 83,700 83,750 83,800 83,850 83,900 83,950 84,000 16,967 16,981 16,995 17,009 17,023 17,037 17,051 17,065 17,079 17,093 17,107 17,121 17,135 17,149 17,163 17,177 17,191 17,205 17,219 17,233 13,131 13,144 13,156 13,169 13,181 13,194 13,206 13,219 13,231 13,244 13,256 13,269 13,281 13,294 13,306 13,319 13,331 13,344 13,356 13,369 17,379 17,393 17,407 17,421 17,435 17,449 17,463 17,477 17,491 17,505 17,519 17,533 17,547 17,561 17,575 17,589 17,603 17,617 17,631 17,645 15,609 15,621 15,634 15,646 15,659 15,671 15,684 15,696 15,709 15,721 15,734 15,746 15,759 15,771 15,784 15,796 15,809 15,821 15,834 15,846 78,000 78,000 78,050 78,100 78,150 78,200 78,250 78,300 78,350 78,400 78,450 78,500 78,550 78,600 78,650 78,700 78,750 78,800 78,850 78,900 78,950 78,050 78,100 78,150 78,200 78,250 78,300 78,350 78,400 78,450 78,500 78,550 78,600 78,650 78,700 78,750 78,800 78,850 78,900 78,950 79,000 15,694 15,706 15,719 15,731 15,744 15,756 15,769 15,781 15,794 15,806 15,819 15,831 15,844 15,856 15,869 15,881 15,894 15,906 15,919 15,931 11,881 11,894 11,906 11,919 11,931 11,944 11,956 11,969 11,981 11,994 12,006 12,019 12,031 12,044 12,056 12,069 12,081 12,094 12,106 12,119 15,979 15,993 16,007 16,021 16,035 16,049 16,063 16,077 16,091 16,105 16,119 16,133 16,147 16,161 16,175 16,189 16,203 16,217 16,231 16,245 14,359 14,371 14,384 14,396 14,409 14,421 14,434 14,446 14,459 14,471 14,484 14,496 14,509 14,521 14,534 14,546 14,559 14,571 14,584 14,596 81,000 81,000 81,050 81,100 81,150 81,200 81,250 81,300 81,350 81,400 81,450 81,500 81,550 81,600 81,650 81,700 81,750 81,800 81,850 81,900 81,950 81,050 81,100 81,150 81,200 81,250 81,300 81,350 81,400 81,450 81,500 81,550 81,600 81,650 81,700 81,750 81,800 81,850 81,900 81,950 82,000 16,444 16,456 16,469 16,481 16,494 16,506 16,519 16,531 16,544 16,556 16,569 16,581 16,594 16,606 16,619 16,631 16,644 16,656 16,669 16,681 12,631 12,644 12,656 12,669 12,681 12,694 12,706 12,719 12,731 12,744 12,756 12,769 12,781 12,794 12,806 12,819 12,831 12,844 12,856 12,869 16,819 16,833 16,847 16,861 16,875 16,889 16,903 16,917 16,931 16,945 16,959 16,973 16,987 17,001 17,015 17,029 17,043 17,057 17,071 17,085 15,109 15,121 15,134 15,146 15,159 15,171 15,184 15,196 15,209 15,221 15,234 15,246 15,259 15,271 15,284 15,296 15,309 15,321 15,334 15,346 84,000 84,000 84,050 84,100 84,150 84,200 84,250 84,300 84,350 84,400 84,450 84,500 84,550 84,600 84,650 84,700 84,750 84,800 84,850 84,900 84,950 84,050 84,100 84,150 84,200 84,250 84,300 84,350 84,400 84,450 84,500 84,550 84,600 84,650 84,700 84,750 84,800 84,850 84,900 84,950 85,000 17,247 17,261 17,275 17,289 17,303 17,317 17,331 17,345 17,359 17,373 17,387 17,401 17,415 17,429 17,443 17,457 17,471 17,485 17,499 17,513 13,381 13,394 13,406 13,419 13,431 13,444 13,456 13,469 13,481 13,494 13,506 13,519 13,531 13,544 13,556 13,569 13,581 13,594 13,606 13,619 17,659 17,673 17,687 17,701 17,715 17,729 17,743 17,757 17,771 17,785 17,799 17,813 17,827 17,841 17,855 17,869 17,883 17,897 17,911 17,925 15,859 15,871 15,884 15,896 15,909 15,921 15,934 15,946 15,959 15,971 15,984 15,996 16,009 16,021 16,034 16,046 16,059 16,071 16,084 16,096 79,000 79,000 79,050 79,100 79,150 79,200 79,250 79,300 79,350 79,400 79,450 79,500 79,550 79,600 79,650 79,700 79,750 79,800 79,850 79,900 79,950 79,050 79,100 79,150 79,200 79,250 79,300 79,350 79,400 79,450 79,500 79,550 79,600 79,650 79,700 79,750 79,800 79,850 79,900 79,950 80,000 15,944 15,956 15,969 15,981 15,994 16,006 16,019 16,031 16,044 16,056 16,069 16,081 16,094 16,106 16,119 16,131 16,144 16,156 16,169 16,181 12,131 12,144 12,156 12,169 12,181 12,194 12,206 12,219 12,231 12,244 12,256 12,269 12,281 12,294 12,306 12,319 12,331 12,344 12,356 12,369 16,259 16,273 16,287 16,301 16,315 16,329 16,343 16,357 16,371 16,385 16,399 16,413 16,427 16,441 16,455 16,469 16,483 16,497 16,511 16,525 14,609 14,621 14,634 14,646 14,659 14,671 14,684 14,696 14,709 14,721 14,734 14,746 14,759 14,771 14,784 14,796 14,809 14,821 14,834 14,846 82,000 82,000 82,050 82,100 82,150 82,200 82,250 82,300 82,350 82,400 82,450 82,500 82,550 82,600 82,650 82,700 82,750 82,800 82,850 82,900 82,950 82,050 82,100 82,150 82,200 82,250 82,300 82,350 82,400 82,450 82,500 82,550 82,600 82,650 82,700 82,750 82,800 82,850 82,900 82,950 83,000 16,694 16,706 16,719 16,731 16,744 16,757 16,771 16,785 16,799 16,813 16,827 16,841 16,855 16,869 16,883 16,897 16,911 16,925 16,939 16,953 12,881 12,894 12,906 12,919 12,931 12,944 12,956 12,969 12,981 12,994 13,006 13,019 13,031 13,044 13,056 13,069 13,081 13,094 13,106 13,119 17,099 17,113 17,127 17,141 17,155 17,169 17,183 17,197 17,211 17,225 17,239 17,253 17,267 17,281 17,295 17,309 17,323 17,337 17,351 17,365 15,359 15,371 15,384 15,396 15,409 15,421 15,434 15,446 15,459 15,471 15,484 15,496 15,509 15,521 15,534 15,546 15,559 15,571 15,584 15,596 85,000 85,000 85,050 85,100 85,150 85,200 85,250 85,300 85,350 85,400 85,450 85,500 85,550 85,600 85,650 85,700 85,750 85,800 85,850 85,900 85,950 85,050 85,100 85,150 85,200 85,250 85,300 85,350 85,400 85,450 85,500 85,550 85,600 85,650 85,700 85,750 85,800 85,850 85,900 85,950 86,000 17,527 17,541 17,555 17,569 17,583 17,597 17,611 17,625 17,639 17,653 17,667 17,681 17,695 17,709 17,723 17,737 17,751 17,765 17,779 17,793 13,631 13,644 13,656 13,669 13,681 13,694 13,706 13,719 13,731 13,744 13,756 13,769 13,781 13,794 13,806 13,819 13,831 13,844 13,856 13,869 17,939 17,953 17,967 17,981 17,995 18,009 18,023 18,037 18,051 18,065 18,079 18,093 18,107 18,121 18,135 18,149 18,163 18,177 18,191 18,205 16,109 16,121 16,134 16,146 16,159 16,171 16,184 16,196 16,209 16,221 16,234 16,246 16,259 16,271 16,284 16,296 16,309 16,321 16,334 16,346 * This column must also be used by a qualifying widow(er). (Continued on page 87) - 86 - 2009 Tax Table – Continued If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 86,000 86,000 86,050 86,100 86,150 86,200 86,250 86,300 86,350 86,400 86,450 86,500 86,550 86,600 86,650 86,700 86,750 86,800 86,850 86,900 86,950 86,050 86,100 86,150 86,200 86,250 86,300 86,350 86,400 86,450 86,500 86,550 86,600 86,650 86,700 86,750 86,800 86,850 86,900 86,950 87,000 17,807 17,821 17,835 17,849 17,863 17,877 17,891 17,905 17,919 17,933 17,947 17,961 17,975 17,989 18,003 18,017 18,031 18,045 18,059 18,073 13,881 13,894 13,906 13,919 13,931 13,944 13,956 13,969 13,981 13,994 14,006 14,019 14,031 14,044 14,056 14,069 14,081 14,094 14,106 14,119 18,219 18,233 18,247 18,261 18,275 18,289 18,303 18,317 18,331 18,345 18,359 18,373 18,387 18,401 18,415 18,429 18,443 18,457 18,471 18,485 16,359 16,371 16,384 16,396 16,409 16,421 16,434 16,446 16,459 16,471 16,484 16,496 16,509 16,521 16,534 16,546 16,559 16,571 16,584 16,596 89,000 89,000 89,050 89,100 89,150 89,200 89,250 89,300 89,350 89,400 89,450 89,500 89,550 89,600 89,650 89,700 89,750 89,800 89,850 89,900 89,950 89,050 89,100 89,150 89,200 89,250 89,300 89,350 89,400 89,450 89,500 89,550 89,600 89,650 89,700 89,750 89,800 89,850 89,900 89,950 90,000 18,647 18,661 18,675 18,689 18,703 18,717 18,731 18,745 18,759 18,773 18,787 18,801 18,815 18,829 18,843 18,857 18,871 18,885 18,899 18,913 14,631 14,644 14,656 14,669 14,681 14,694 14,706 14,719 14,731 14,744 14,756 14,769 14,781 14,794 14,806 14,819 14,831 14,844 14,856 14,869 19,059 19,073 19,087 19,101 19,115 19,129 19,143 19,157 19,171 19,185 19,199 19,213 19,227 19,241 19,255 19,269 19,283 19,297 19,311 19,325 17,109 17,121 17,134 17,146 17,159 17,171 17,184 17,196 17,209 17,221 17,234 17,246 17,259 17,271 17,284 17,296 17,309 17,321 17,334 17,346 92,000 92,000 92,050 92,100 92,150 92,200 92,250 92,300 92,350 92,400 92,450 92,500 92,550 92,600 92,650 92,700 92,750 92,800 92,850 92,900 92,950 92,050 92,100 92,150 92,200 92,250 92,300 92,350 92,400 92,450 92,500 92,550 92,600 92,650 92,700 92,750 92,800 92,850 92,900 92,950 93,000 19,487 19,501 19,515 19,529 19,543 19,557 19,571 19,585 19,599 19,613 19,627 19,641 19,655 19,669 19,683 19,697 19,711 19,725 19,739 19,753 15,381 15,394 15,406 15,419 15,431 15,444 15,456 15,469 15,481 15,494 15,506 15,519 15,531 15,544 15,556 15,569 15,581 15,594 15,606 15,619 19,899 19,913 19,927 19,941 19,955 19,969 19,983 19,997 20,011 20,025 20,039 20,053 20,067 20,081 20,095 20,109 20,123 20,137 20,151 20,165 17,859 17,871 17,884 17,896 17,909 17,921 17,934 17,946 17,959 17,971 17,984 17,996 18,009 18,021 18,034 18,046 18,059 18,071 18,084 18,096 87,000 87,000 87,050 87,100 87,150 87,200 87,250 87,300 87,350 87,400 87,450 87,500 87,550 87,600 87,650 87,700 87,750 87,800 87,850 87,900 87,950 87,050 87,100 87,150 87,200 87,250 87,300 87,350 87,400 87,450 87,500 87,550 87,600 87,650 87,700 87,750 87,800 87,850 87,900 87,950 88,000 18,087 18,101 18,115 18,129 18,143 18,157 18,171 18,185 18,199 18,213 18,227 18,241 18,255 18,269 18,283 18,297 18,311 18,325 18,339 18,353 14,131 14,144 14,156 14,169 14,181 14,194 14,206 14,219 14,231 14,244 14,256 14,269 14,281 14,294 14,306 14,319 14,331 14,344 14,356 14,369 18,499 18,513 18,527 18,541 18,555 18,569 18,583 18,597 18,611 18,625 18,639 18,653 18,667 18,681 18,695 18,709 18,723 18,737 18,751 18,765 16,609 16,621 16,634 16,646 16,659 16,671 16,684 16,696 16,709 16,721 16,734 16,746 16,759 16,771 16,784 16,796 16,809 16,821 16,834 16,846 90,000 90,000 90,050 90,100 90,150 90,200 90,250 90,300 90,350 90,400 90,450 90,500 90,550 90,600 90,650 90,700 90,750 90,800 90,850 90,900 90,950 90,050 90,100 90,150 90,200 90,250 90,300 90,350 90,400 90,450 90,500 90,550 90,600 90,650 90,700 90,750 90,800 90,850 90,900 90,950 91,000 18,927 18,941 18,955 18,969 18,983 18,997 19,011 19,025 19,039 19,053 19,067 19,081 19,095 19,109 19,123 19,137 19,151 19,165 19,179 19,193 14,881 14,894 14,906 14,919 14,931 14,944 14,956 14,969 14,981 14,994 15,006 15,019 15,031 15,044 15,056 15,069 15,081 15,094 15,106 15,119 19,339 19,353 19,367 19,381 19,395 19,409 19,423 19,437 19,451 19,465 19,479 19,493 19,507 19,521 19,535 19,549 19,563 19,577 19,591 19,605 17,359 17,371 17,384 17,396 17,409 17,421 17,434 17,446 17,459 17,471 17,484 17,496 17,509 17,521 17,534 17,546 17,559 17,571 17,584 17,596 93,000 93,000 93,050 93,100 93,150 93,200 93,250 93,300 93,350 93,400 93,450 93,500 93,550 93,600 93,650 93,700 93,750 93,800 93,850 93,900 93,950 93,050 93,100 93,150 93,200 93,250 93,300 93,350 93,400 93,450 93,500 93,550 93,600 93,650 93,700 93,750 93,800 93,850 93,900 93,950 94,000 19,767 19,781 19,795 19,809 19,823 19,837 19,851 19,865 19,879 19,893 19,907 19,921 19,935 19,949 19,963 19,977 19,991 20,005 20,019 20,033 15,631 15,644 15,656 15,669 15,681 15,694 15,706 15,719 15,731 15,744 15,756 15,769 15,781 15,794 15,806 15,819 15,831 15,844 15,856 15,869 20,179 20,193 20,207 20,221 20,235 20,249 20,263 20,277 20,291 20,305 20,319 20,333 20,347 20,361 20,375 20,389 20,403 20,417 20,431 20,445 18,109 18,121 18,134 18,146 18,159 18,171 18,184 18,196 18,209 18,221 18,234 18,246 18,259 18,271 18,284 18,296 18,309 18,321 18,334 18,346 88,000 88,000 88,050 88,100 88,150 88,200 88,250 88,300 88,350 88,400 88,450 88,500 88,550 88,600 88,650 88,700 88,750 88,800 88,850 88,900 88,950 88,050 88,100 88,150 88,200 88,250 88,300 88,350 88,400 88,450 88,500 88,550 88,600 88,650 88,700 88,750 88,800 88,850 88,900 88,950 89,000 18,367 18,381 18,395 18,409 18,423 18,437 18,451 18,465 18,479 18,493 18,507 18,521 18,535 18,549 18,563 18,577 18,591 18,605 18,619 18,633 14,381 14,394 14,406 14,419 14,431 14,444 14,456 14,469 14,481 14,494 14,506 14,519 14,531 14,544 14,556 14,569 14,581 14,594 14,606 14,619 18,779 18,793 18,807 18,821 18,835 18,849 18,863 18,877 18,891 18,905 18,919 18,933 18,947 18,961 18,975 18,989 19,003 19,017 19,031 19,045 16,859 16,871 16,884 16,896 16,909 16,921 16,934 16,946 16,959 16,971 16,984 16,996 17,009 17,021 17,034 17,046 17,059 17,071 17,084 17,096 91,000 91,000 91,050 91,100 91,150 91,200 91,250 91,300 91,350 91,400 91,450 91,500 91,550 91,600 91,650 91,700 91,750 91,800 91,850 91,900 91,950 91,050 91,100 91,150 91,200 91,250 91,300 91,350 91,400 91,450 91,500 91,550 91,600 91,650 91,700 91,750 91,800 91,850 91,900 91,950 92,000 19,207 19,221 19,235 19,249 19,263 19,277 19,291 19,305 19,319 19,333 19,347 19,361 19,375 19,389 19,403 19,417 19,431 19,445 19,459 19,473 15,131 15,144 15,156 15,169 15,181 15,194 15,206 15,219 15,231 15,244 15,256 15,269 15,281 15,294 15,306 15,319 15,331 15,344 15,356 15,369 19,619 19,633 19,647 19,661 19,675 19,689 19,703 19,717 19,731 19,745 19,759 19,773 19,787 19,801 19,815 19,829 19,843 19,857 19,871 19,885 17,609 17,621 17,634 17,646 17,659 17,671 17,684 17,696 17,709 17,721 17,734 17,746 17,759 17,771 17,784 17,796 17,809 17,821 17,834 17,846 94,000 94,000 94,050 94,100 94,150 94,200 94,250 94,300 94,350 94,400 94,450 94,500 94,550 94,600 94,650 94,700 94,750 94,800 94,850 94,900 94,950 94,050 94,100 94,150 94,200 94,250 94,300 94,350 94,400 94,450 94,500 94,550 94,600 94,650 94,700 94,750 94,800 94,850 94,900 94,950 95,000 20,047 20,061 20,075 20,089 20,103 20,117 20,131 20,145 20,159 20,173 20,187 20,201 20,215 20,229 20,243 20,257 20,271 20,285 20,299 20,313 15,881 15,894 15,906 15,919 15,931 15,944 15,956 15,969 15,981 15,994 16,006 16,019 16,031 16,044 16,056 16,069 16,081 16,094 16,106 16,119 20,459 20,473 20,487 20,501 20,515 20,529 20,543 20,557 20,571 20,585 20,599 20,613 20,627 20,641 20,655 20,669 20,683 20,697 20,711 20,725 18,359 18,371 18,384 18,396 18,409 18,421 18,434 18,446 18,459 18,471 18,484 18,496 18,509 18,521 18,534 18,546 18,559 18,571 18,584 18,596 * This column must also be used by a qualifying widow(er). (Continued on page 88) - 87 - 2009 Tax Table – Continued If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household If line 43 (taxable income) is — At least But less than Single And you are — Married Married filing filing jointly sepa* rately Your tax is — Head of a household 95,000 95,000 95,050 95,100 95,150 95,200 95,250 95,300 95,350 95,400 95,450 95,500 95,550 95,600 95,650 95,700 95,750 95,800 95,850 95,900 95,950 95,050 95,100 95,150 95,200 95,250 95,300 95,350 95,400 95,450 95,500 95,550 95,600 95,650 95,700 95,750 95,800 95,850 95,900 95,950 96,000 20,327 20,341 20,355 20,369 20,383 20,397 20,411 20,425 20,439 20,453 20,467 20,481 20,495 20,509 20,523 20,537 20,551 20,565 20,579 20,593 16,131 16,144 16,156 16,169 16,181 16,194 16,206 16,219 16,231 16,244 16,256 16,269 16,281 16,294 16,306 16,319 16,331 16,344 16,356 16,369 20,739 20,753 20,767 20,781 20,795 20,809 20,823 20,837 20,851 20,865 20,879 20,893 20,907 20,921 20,935 20,949 20,963 20,977 20,991 21,005 18,609 18,621 18,634 18,646 18,659 18,671 18,684 18,696 18,709 18,721 18,734 18,746 18,759 18,771 18,784 18,796 18,809 18,821 18,834 18,846 97,000 97,000 97,050 97,100 97,150 97,200 97,250 97,300 97,350 97,400 97,450 97,500 97,550 97,600 97,650 97,700 97,750 97,800 97,850 97,900 97,950 97,050 97,100 97,150 97,200 97,250 97,300 97,350 97,400 97,450 97,500 97,550 97,600 97,650 97,700 97,750 97,800 97,850 97,900 97,950 98,000 20,887 20,901 20,915 20,929 20,943 20,957 20,971 20,985 20,999 21,013 21,027 21,041 21,055 21,069 21,083 21,097 21,111 21,125 21,139 21,153 16,631 16,644 16,656 16,669 16,681 16,694 16,706 16,719 16,731 16,744 16,756 16,769 16,781 16,794 16,806 16,819 16,831 16,844 16,856 16,869 21,299 21,313 21,327 21,341 21,355 21,369 21,383 21,397 21,411 21,425 21,439 21,453 21,467 21,481 21,495 21,509 21,523 21,537 21,551 21,565 19,109 19,121 19,134 19,146 19,159 19,171 19,184 19,196 19,209 19,221 19,234 19,246 19,259 19,271 19,284 19,296 19,309 19,321 19,334 19,346 99,000 99,000 99,050 99,050 99,100 99,100 99,150 99,150 99,200 99,200 99,250 99,250 99,300 99,300 99,350 99,350 99,400 99,400 99,450 99,450 99,500 99,500 99,550 99,550 99,600 99,600 99,650 99,650 99,700 99,700 99,750 99,750 99,800 99,800 99,850 99,850 99,900 99,900 99,950 99,950 100,000 21,447 21,461 21,475 21,489 21,503 21,517 21,531 21,545 21,559 21,573 21,587 21,601 21,615 21,629 21,643 21,657 21,671 21,685 21,699 21,713 17,131 17,144 17,156 17,169 17,181 17,194 17,206 17,219 17,231 17,244 17,256 17,269 17,281 17,294 17,306 17,319 17,331 17,344 17,356 17,369 21,859 21,873 21,887 21,901 21,915 21,929 21,943 21,957 21,971 21,985 21,999 22,013 22,027 22,041 22,055 22,069 22,083 22,097 22,111 22,125 19,609 19,621 19,634 19,646 19,659 19,671 19,684 19,696 19,709 19,721 19,734 19,746 19,759 19,771 19,784 19,796 19,809 19,821 19,834 19,846 96,000 96,000 96,050 96,100 96,150 96,200 96,250 96,300 96,350 96,400 96,450 96,500 96,550 96,600 96,650 96,700 96,750 96,800 96,850 96,900 96,950 96,050 96,100 96,150 96,200 96,250 96,300 96,350 96,400 96,450 96,500 96,550 96,600 96,650 96,700 96,750 96,800 96,850 96,900 96,950 97,000 20,607 20,621 20,635 20,649 20,663 20,677 20,691 20,705 20,719 20,733 20,747 20,761 20,775 20,789 20,803 20,817 20,831 20,845 20,859 20,873 16,381 16,394 16,406 16,419 16,431 16,444 16,456 16,469 16,481 16,494 16,506 16,519 16,531 16,544 16,556 16,569 16,581 16,594 16,606 16,619 21,019 21,033 21,047 21,061 21,075 21,089 21,103 21,117 21,131 21,145 21,159 21,173 21,187 21,201 21,215 21,229 21,243 21,257 21,271 21,285 18,859 18,871 18,884 18,896 18,909 18,921 18,934 18,946 18,959 18,971 18,984 18,996 19,009 19,021 19,034 19,046 19,059 19,071 19,084 19,096 98,000 98,000 98,050 98,100 98,150 98,200 98,250 98,300 98,350 98,400 98,450 98,500 98,550 98,600 98,650 98,700 98,750 98,800 98,850 98,900 98,950 98,050 98,100 98,150 98,200 98,250 98,300 98,350 98,400 98,450 98,500 98,550 98,600 98,650 98,700 98,750 98,800 98,850 98,900 98,950 99,000 21,167 21,181 21,195 21,209 21,223 21,237 21,251 21,265 21,279 21,293 21,307 21,321 21,335 21,349 21,363 21,377 21,391 21,405 21,419 21,433 16,881 16,894 16,906 16,919 16,931 16,944 16,956 16,969 16,981 16,994 17,006 17,019 17,031 17,044 17,056 17,069 17,081 17,094 17,106 17,119 21,579 21,593 21,607 21,621 21,635 21,649 21,663 21,677 21,691 21,705 21,719 21,733 21,747 21,761 21,775 21,789 21,803 21,817 21,831 21,845 19,359 19,371 19,384 19,396 19,409 19,421 19,434 19,446 19,459 19,471 19,484 19,496 19,509 19,521 19,534 19,546 19,559 19,571 19,584 19,596 $100,000 or over — use the Tax Computation Worksheet on page 89 * This column must also be used by a qualifying widow(er) - 88 - 2009 Tax Computation Worksheet—Line 44 CAUTION ! See the instructions for line 44 that begin on page 37 to see if you must use the worksheet below to figure your tax. Note. If you are required to use this worksheet to figure the tax on an amount from another form or worksheet, such as the Qualified Dividends and Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, Schedule J, Form 8615, or the Foreign Earned Income Tax Worksheet, enter the amount from that form or worksheet in column (a) of the row that applies to the amount you are looking up. Enter the result on the appropriate line of the form or worksheet that you are completing. Section A— Use if your filing status is Single. Complete the row below that applies to you. (a) Enter the amount from line 43 $ $ $ (b) Multiplication amount × 28% (.28) × 33% (.33) × 35% (.35) $ $ $ (c) Multiply (a) by (b) ( d) Subtraction amount $ 6,280.00 $ 14,857.50 $22,316.50 Tax. Subtract (d) from (c). Enter the result here and on Form 1040, line 44 $ $ $ Taxable income. If line 43 is — At least $100,000 but not over $171,550 Over $171,550 but not over $372,950 Over $372,950 Section B— Use if your filing status is Married filing jointly or Qualifying widow(er). Complete the row below that applies to you. (a) Enter the amount from line 43 $ $ $ $ (b) Multiplication amount × 25% (.25) × 28% (.28) × 33% (.33) × 35% (.35) $ $ $ $ (c) Multiply (a) by (b) (d) Subtraction amount $ 7,625.00 $ 11,736.50 $ 22,179.00 $ 29,638.00 Tax. Subtract (d) from (c). Enter the result here and on Form 1040, line 44 $ $ $ $ Taxable income. If line 43 is — At least $100,000 but not over $137,050 Over $137,050 but not over $208,850 Over $208,850 but not over $372,950 Over $372,950 Section C— Use if your filing status is Married filing separately. Complete the row below that applies to you. (a) Enter the amount from line 43 $ $ $ (b) Multiplication amount × 28% (.28) × 33% (.33) × 35% (.35) $ $ $ (c) Multiply (a) by (b) (d) Subtraction amount $ 5,868.25 $ 11,089.50 $ 14,819.00 Tax. Subtract (d) from (c). Enter the result here and on Form 1040, line 44 $ $ $ Taxable income. If line 43 is — At least $100,000 but not over $104,425 Over $104,425 but not over $186,475 Over $186,475 Section D— Use if your filing status is Head of household. Complete the row below that applies to you. (a) Enter the amount from line 43 $ $ $ $ (b) Multiplication amount × 25% (.25) × 28% (.28) × 33% (.33) × 35% (.35) $ $ $ $ (c) Multiply (a) by (b) ( d) Subtraction amount $ 5,147.50 $ 8,671.00 $ 18,181.00 $ 25,640.00 Tax. Subtract (d) from (c). Enter the result here and on Form 1040, line 44 $ $ $ $ Taxable income. If line 43 is — At least $100,000 but not over $117,450 Over $117,450 but not over $190,200 Over $190,200 but not over $372,950 Over $372,950 - 89 - Need more information or forms? See page 96. General Information How To Avoid Common Mistakes Mistakes can delay your refund or result in notices being sent to you. • Make sure you entered the correct name and social security number (SSN) for each dependent you claim on line 6c. Check that each dependent’s name and SSN agrees with his or her social security card. For each child under age 17 who is a qualifying child for the child tax credit, make sure you checked the box in line 6c, column (4). • Check your math, especially for the child tax credit, earned income credit (EIC), taxable social security benefits, total income, itemized deductions or standard deduction, deduction for exemptions, taxable income, total tax, federal income tax withheld, and refund or amount you owe. • Be sure you used the correct method to figure your tax. See the instructions for line 44 that begin on page 37. • Be sure to enter your SSN in the space provided on page 1 of Form 1040. If you are married filing a joint or separate return, also enter your spouse’s SSN. Be sure to enter your SSN in the space next to your name. Check that your name and SSN agree with your social security card. • Make sure your name and address are correct on the peel-off label. If not, enter the correct information. If you did not get a peel-off label, enter your (and your spouse’s) name in the same order as shown on your last return. • If you live in an apartment, be sure to include your apartment number in your address. • If you are taking the standard deduction and you checked any box on line 39a, 39b, or 40b or you (or your spouse if filing jointly) can be claimed as a dependent on someone else’s 2009 return, see pages 35 and 36 to be sure you entered the correct amount on line 40a. • If you received capital gain distributions but were not required to file Schedule D, make sure you checked the box on line 13. • If you are taking the EIC, be sure you used the correct column of the EIC Table for your filing status and the number of children you have. • Remember to sign and date Form 1040 and enter your occupation(s). • Attach your Form(s) W-2 and other required forms and schedules. Put all forms and schedules in the proper order. See Assemble Your Return on page 76. • If you owe tax and are paying by check or money order, be sure to include all the required information on your payment. See the instructions for line 75 on page 74 for details. • Do not file more than one original return for the same year, even if you have not gotten your refund or have not heard from the IRS since you filed. Filing more than one original return for the same year, or sending in more than one copy of the same return (unless we ask you to do so), could delay your refund. from your 2010 pay. For details on how to complete Form W-4, see Pub. 919. If you have pension or annuity income, use Form W-4P. If you receive certain government payments (such as unemployment compensation or social security benefits), you can have tax withheld from those payments by giving the payer Form W-4V. What Are Your Rights as a Taxpayer? You have the right to be treated fairly, professionally, promptly, and courteously by IRS employees. Our goal at the IRS is to protect your rights so that you will have the highest confidence in the integrity, efficiency, and fairness of our tax system. To ensure that you always receive such treatment, you should know about the many rights you have at each step of the tax process. For details, see Pub. 1. You can use the IRS Withholding Calculator at www.irs.gov/ individuals, instead of Pub. 919 or the worksheets included with Form W-4 or W-4P, to determine whether you need to have your withholding increased or decreased. TIP In general, you do not have to make estimated tax payments if you expect that your 2010 Form 1040 will show a tax refund or a tax balance due of less than $1,000. If your total estimated tax for 2010 is $1,000 or more, see Form 1040-ES. It has a worksheet you can use to see if you have to make estimated tax payments. For more details, see Pub. 505. Innocent Spouse Relief Generally, both you and your spouse are each responsible for paying the full amount of tax, interest, and penalties on your joint return. However, you may qualify for relief from liability for tax on a joint return if (a) there is an understatement of tax because your spouse omitted income or claimed false deductions or credits, (b) you are divorced, separated, or no longer living with your spouse, or (c) given all the facts and circumstances, it would not be fair to hold you liable for the tax. You may also qualify for relief if you were a married resident of a community property state but did not file a joint return and are now liable for an underpaid or understated tax. To request relief, you generally must file Form 8857 no later than 2 years after the date on which the IRS first attempted to collect the tax from you. For more information, see Pub. 971 and Form 8857 or you can call the Innocent Spouse office toll-free at 1-866-897-4270. Do Both the Name and SSN on Your Tax Forms Agree With Your Social Security Card? If not, certain deductions and credits may be reduced or disallowed, your refund may be delayed, and you may not receive credit for your social security earnings. If your Form W-2 shows an incorrect SSN or name, notify your employer or the form-issuing agent as soon as possible to make sure your earnings are credited to your social security record. If the name or SSN on your social security card is incorrect, call the Social Security Administration at 1-800-772-1213. Secure Your Tax Records from Identity Theft Identity theft occurs when someone uses your personal information such as your name, social security number (SSN), or other identifying information, without your permission, to commit fraud or other crimes. An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund. Income Tax Withholding and Estimated Tax Payments for 2010 If the amount you owe or the amount you overpaid is large, you may want to file a new Form W-4 with your employer to change the amount of income tax withheld your SSN, and • Protect your SSN, • Ensure your employer is protecting To reduce your risk: - 90 - • Be careful when choosing a tax preparer. If your tax records are affected by identity theft and you receive a notice from the IRS, respond right away to the name and phone number printed on the IRS notice or letter. If your tax records are not currently affected by identity theft but you think you are at risk due to a lost or stolen purse or wallet, questionable credit card activity or credit report, etc., contact the IRS Identity Theft Hotline at 1-800-908-4490 or submit Form 14039. For more information, see Pub. 4535. Victims of identity theft who are experiencing economic harm or a systemic problem, or are seeking help in resolving tax problems that have not been resolved through normal channels, may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach TAS by calling the National Taxpayer Advocate helpline at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Protect yourself from suspicious emails or phishing schemes. Phishing is the creation you file. Do not add your gift to any tax you may owe. See page 74 for details on how to pay any tax you owe. across the top of the return. If this information is not provided, it may delay the processing of the return. If your spouse died in 2009 and you did not remarry in 2009, or if your spouse died in 2010 before filing a return for 2009, you can file a joint return. A joint return should show your spouse’s 2009 income before death and your income for all of 2009. Enter “Filing as surviving spouse” in the area where you sign the return. If someone else is the personal representative, he or she must also sign. The surviving spouse or personal representative should promptly notify all payers of income, including financial institutions, of the taxpayer’s death. This will ensure the proper reporting of income earned by the taxpayer’s estate or heirs. A deceased taxpayer’s social security number should not be used for tax years after the year of death, except for estate tax return purposes. TIP You may be able to deduct this gift on your 2010 tax return. How Long Should Records Be Kept? Keep a copy of your tax return, worksheets you used, and records of all items appearing on it (such as Forms W-2 and 1099) until the statute of limitations runs out for that return. Usually, this is 3 years from the date the return was due or filed or 2 years from the date the tax was paid, whichever is later. You should keep some records longer. For example, keep property records (including those on your home) as long as they are needed to figure the basis of the original or replacement property. For more details, see Pub. 552. Claiming a Refund for a Deceased Taxpayer If you are filing a joint return as a surviving spouse, you only need to file the tax return to claim the refund. If you are a court-appointed representative, file the return and attach a copy of the certificate that shows your appointment. All other filers requesting the deceased taxpayer’s refund must file the return and attach Form 1310. For more details, use TeleTax topic 356 (see page 94) or see Pub. 559. and use of email and websites designed to mimic legitimate business emails and websites. The most common form is the act of sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft. The IRS does not initiate contacts with taxpayers via emails. Also, the IRS does not request detailed personal information through email or ask taxpayers for the PIN numbers, passwords, or similar secret access information for their credit card, bank, or other financial accounts. If you receive an unsolicited email claiming to be from the IRS, forward the message to [email protected] You may also report misuse of the IRS name, logo, forms, or other IRS property to the Treasury Inspector General for Tax Administration toll-free at 1-800-366-4484. You can forward suspicious emails to the Federal Trade Commission at [email protected] or contact them at www.ftc.gov/idtheft or 1-877-IDTHEFT (1-877-438-4338). Visit the IRS website at www.irs.gov to learn more about identity theft and how to reduce your risk. Amended Return File Form 1040X to change a return you already filed. Generally, Form 1040X must be filed within 3 years after the date the original return was filed or within 2 years after the date the tax was paid, whichever is later. But you may have more time to file Form 1040X if you live in a federally declared disaster area or you are physically or mentally unable to manage your financial affairs. See Pub. 556 for details. Past Due Returns The integrity of our tax system and well-being of our country depend, to a large degree, on the timely filing and payment of taxes by each individual, family, and business in this country. Those choosing not to file and pay their fair share increase the burden on the rest of us to support our schools, maintain and repair roadways, and the many other ways our tax dollars help to make life easier for all citizens. Some people don’t know they should file a tax return; some don’t file because they expect a refund; and some don’t file because they owe taxes. Encourage your family, neighbors, friends, and coworkers to do their fair share by filing their federal tax returns and paying any tax due on time. If you or someone you know needs to file past due tax returns, use TeleTax topic 153 (see page 93) or visit www.irs.gov and click on “Individuals” for help in filing those returns. Send the return to the address that applies to you in the latest Form 1040 instruction booklet. For example, if you are filing a 2006 return in 2010, use the address in this booklet. However, if you got an IRS notice, mail the return to the address in the notice. Need a Copy of Your Tax Return? If you need a copy of your tax return, use Form 4506. There is a $57 fee (subject to change) for each return requested. If your main home, principal place of business, or tax records are located in a federally declared disaster area, this fee will be waived. If you want a free transcript of your tax return or account, use Form 4506-T or call us. See page 95 for the number. Death of a Taxpayer If a taxpayer died before filing a return for 2009, the taxpayer’s spouse or personal representative may have to file and sign a return for that taxpayer. A personal representative can be an executor, administrator, or anyone who is in charge of the deceased taxpayer’s property. If the deceased taxpayer did not have to file a return but had tax withheld, a return must be filed to get a refund. The person who files the return must enter “Deceased,” the deceased taxpayer’s name, and the date of death How Do You Make a Gift To Reduce Debt Held By the Public? If you wish to do so, make a check payable to “Bureau of the Public Debt.” You can send it to: Bureau of the Public Debt, Department G, P.O. Box 2188, Parkersburg, WV 26106-2188. Or you can enclose the check with your income tax return when - 91 - Other Ways To Get Help Send Your Written Tax Questions to the IRS You should get an answer in about 30 days. For the mailing address, call us at 1-800-829-1040 (hearing impaired customers with access to TTY/TDD equipment may call 1-800-829-4059). Do not send questions with your return. 1099, and 1098 for 2009, and any other information about your 2009 income and expenses. plicated, we will do it for you if you want. We will send you a bill for any amount due. If you include interest or penalties (other than the estimated tax penalty) with your payment, identify and enter the amount in the bottom margin of Form 1040, page 2. Do not include interest or penalties (other than the estimated tax penalty) in the amount you owe on line 75. Everyday Tax Solutions You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Call your local Taxpayer Assistance Center for an appointment. To find the number, go to www.irs.gov/localcontacts or look in the phone book under “United States Government, Internal Revenue Service.” Interest We will charge you interest on taxes not paid by their due date, even if an extension of time to file is granted. We will also charge you interest on penalties imposed for failure to file, negligence, fraud, substantial valuation misstatements, substantial understatements of tax, and reportable transaction understatements. Interest is charged on the penalty from the due date of the return (including extensions). Research Your Tax Questions Online You can find answers to many of your tax questions online in several ways by accessing the IRS website at www.irs.gov/help and then clicking on “Help With Tax Questions.” Here are some of the methods you may want to try. tion contains an extensive list of questions and answers. You can select your question by category or keyword. • Tax trails. This is an interactive section which asks questions you can answer by selecting “Yes” or “No.” • Tax topics. This is an online version of the TeleTax topics listed on pages 93 and 94. Online Services If you subscribe to an online service, ask about online filing or tax information. • Frequently asked questions. This sec- Help for People With Disabilities Telephone help is available using TTY/ TDD equipment by calling 1-800-829-4059. Braille materials are available at libraries that have special services for people with disabilities. Penalties Late filing. If you do not file your return by the due date (including extensions), the penalty is usually 5% of the amount due for each month or part of a month your return is late, unless you have a reasonable explanation. If you do, attach it to your return. The penalty can be as much as 25% of the tax due. The penalty is 15% per month, up to a maximum of 75%, if the failure to file is fraudulent. If your return is more than 60 days late, the minimum penalty will be $135 or the amount of any tax you owe, whichever is smaller. Late payment of tax. If you pay your taxes Tax Services in Other Languages To better serve taxpayers whose native language is not English, we have products and services in various languages. For Spanish speaking taxpayers, we have: • Spanish Publication 17, El Impuesto Federal sobre los Ingresos, and • The Espanol website, www.irs.gov/ espanol. We also offer a Basic Tax Responsibilities CD/DVD in the following languages. • Spanish. • Chinese. • Vietnamese. • Korean. • Russian. To get a copy of this CD/DVD, call the National Distribution Center at 1-800-829-3676 and ask for Pub. 4580 in your language. Free Help With Your Return Free help in preparing your return is available nationwide from IRS-sponsored volunteers. These volunteers are trained and certified to prepare federal income tax returns by passing an IRS test. The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers. The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax return preparation. VITA/TCE tax preparation sites must adhere to strict quality standards necessary to prepare accurate returns. Free electronic filing is offered by IRS authorized e-file providers at many of the VITA/TCE locations nationwide. Volunteers will help you with claiming the credits and deductions you may be entitled to. If you are a member of the military, you can also get assistance on military tax benefits, such as combat zone tax benefits, at an office within your installation. For more information on these programs, go to www.irs.gov and enter keyword “VITA” in the upper right corner. Or, call us at 1-800-829-1040. To find the nearest AARP Tax-Aide site, visit AARP’s website at www.aarp.org/money/taxaide or call 1-888-227-7669. When you go for help, take proof of identity and social security numbers (or individual taxpayer identification numbers) for your spouse, your dependents, and yourself. Take a copy of your 2008 tax return (if available), all your Forms W-2, late, the penalty is usually 1⁄2 of 1% of the unpaid amount for each month or part of a month the tax is not paid. The penalty can be as much as 25% of the unpaid amount. It applies to any unpaid tax on the return. This penalty is in addition to interest charges on late payments. Frivolous return. In addition to any other The IRS Taxpayer Assistance Centers provide over-the-phone interpreter assistance in more than 170 different languages. To find the number, see Everyday Tax Solutions above. TIP penalties, the law imposes a penalty of $5,000 for filing a frivolous return. A frivolous return is one that does not contain information needed to figure the correct tax or shows a substantially incorrect tax because you take a frivolous position or desire to delay or interfere with the tax laws. This includes altering or striking out the preprinted language above the space where you sign. For a list of positions identified as frivolous, see Notice 2008-14, 2008-4 I.R.B. 310, available at www.irs.gov/irb/2008-04_IRB/ar12.html. Other. Other penalties can be imposed for Interest and Penalties You do not have to figure the amount of any interest or penalties you may owe. Because figuring these amounts can be com- negligence, substantial understatement of tax, reportable transaction understatements, filing an erroneous refund claim, and fraud. Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. See Pub. 17 for details on some of these penalties. - 92 - Refund Information You can go online to check the status of your refund 72 hours after IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after you mail a paper return. But if you filed Form 8379 with your return, allow 14 weeks (11 weeks if you filed electronically) before checking your refund status. Go to www.irs.gov and click on Where’s My Refund. Have a copy of your tax return handy. You will need to provide the following information from your return: If you do not have Internet access, call: shown on page 95, or • 1-800-829-4477 24 hours a day, 7 days a week, for automated refund information. Do not send in a copy of your return unless asked to do so. To get a refund, you generally must file your return within 3 years from the date the return was due (including extensions). Refund information also is available in Spanish at www.irs.gov/espanol and the phone numbers listed above. • 1-800-829-1954 during the hours • Your social security number (or individual taxpayer identification number), • Your filing status, and • The exact whole dollar amount of your refund. Refunds are sent out weekly on Fridays. If you check the status TIP of your refund and are not given the date it will be issued, please wait until the next week before checking back. What Is TeleTax? Recorded Tax Information Recorded tax information is available 24 hours a day, 7 days a week. Select the number of the topic you want to hear. Then, call 1-800-829-4477. Have paper and pencil handy to take notes. Topics by Internet TeleTax topics are also available through the IRS website at www.irs.gov. TeleTax Topics All topics are available in Spanish. Topic No. Subject IRS Help Available 101 IRS services — Volunteer tax assistance, toll-free telephone, walk-in assistance, and outreach programs Tax assistance for individuals with disabilities and the hearing impaired Tax help for small businesses and self-employed Taxpayer Advocate Service — Help for problem situations Armed Forces tax information Tax relief in disaster situations IRS Procedures 151 152 153 Your appeal rights Refund information What to do if you haven’t filed your tax return 102 103 104 105 107 Topic No. Subject 154 Forms W-2 and Form 1099-R — What to do if not received 155 Forms and publications — How to order 156 Copy of your tax return — How to get one 157 Change of address — How to notify IRS 158 Ensuring proper credit of payments 159 Prior year(s) Form W-2 — How to get a copy of 160 Form 1099-A (Acquisition or Abandonment of Secured Property) and Form 1099-C (Cancellation of Debt) Collection 201 202 203 204 The collection process Tax payment options Failure to pay child support and federal nontax and state income tax obligations Offers in compromise Topic No. Subject 205 Innocent spouse relief (and separation of liability and equitable relief) 206 Dishonored payments Alternative Filing Methods 253 254 255 Substitute tax forms How to choose a paid tax preparer Self-select PIN signature method for online registration General Information 301 303 304 305 306 307 308 309 310 311 When, where, and how to file Checklist of common errors when preparing your tax return Extension of time to file your tax return Recordkeeping Penalty for underpayment of estimated tax Backup withholding Amended returns Roth IRA contributions Coverdell education savings accounts Power of attorney information - 93 - TeleTax Topics (Continued) Topic No. Subject 312 Disclosure authorizations 313 Qualified tuition programs (QTPs) Which Forms to File 352 356 401 403 404 407 409 410 411 412 413 414 415 416 417 418 419 420 421 423 424 425 427 429 430 431 451 452 453 455 456 457 458 501 502 503 Which form — 1040, 1040A, or 1040EZ? Decedents Types of Income Wages and salaries Interest received Dividends Business income Capital gains and losses Pensions and annuities Pensions — The general rule and the simplified method Lump-sum distributions Rollovers from retirement plans Rental income and expenses Renting residential and vacation property Farming and fishing income Earnings for clergy Unemployment compensation Gambling income and expenses Bartering income Scholarship and fellowship grants Social security and equivalent railroad retirement benefits 401(k) plans Passive activities — Losses and credits Stock options Traders in securities (information for Form 1040 filers) Exchange of policyholder interest for stock Canceled debt — Is it taxable or not? Adjustments to Income Individual retirement arrangements (IRAs) Alimony paid Bad debt deduction Moving expenses Student loan interest deduction Tuition and fees deduction Educator expense deduction Itemized Deductions Should I itemize? Medical and dental expenses Deductible taxes Topic No. Subject 504 Home mortgage points 505 Interest expense 506 Contributions 507 Casualty and theft losses 508 Miscellaneous expenses 509 Business use of home 510 Business use of car 511 Business travel expenses 512 Business entertainment expenses 513 Educational expenses 514 Employee business expenses 515 Casualty, disaster, and theft losses Tax Computation 551 552 553 554 556 557 558 Standard deduction Tax and credits figured by the IRS Tax on a child’s investment income Self-employment tax Alternative minimum tax Tax on early distributions from traditional and Roth IRAs Tax on early distributions from retirement plans Tax Credits 601 602 607 608 610 611 612 Earned income credit (EIC) Child and dependent care credit Adoption credit Excess social security and RRTA tax withheld Retirement savings contributions credit First-time homebuyer credit — Purchases made in 2008 First-time homebuyer credit — Purchases made in 2009 IRS Notices 651 652 653 Notices — What to do Notice of underreported income — CP 2000 IRS notices and bills, penalties, and interest charges Basis of Assets, Depreciation, and Sale of Assets 701 703 704 705 Sale of your home Basis of assets Depreciation Installment sales Employer Tax Information 751 752 Social security and Medicare withholding rates Form W-2 — Where, when, and how to file Topic No. Subject 753 Form W-4 — Employee’s Withholding Allowance Certificate 754 Form W-5 — Advance earned income credit 755 Employer identification number (EIN) — How to apply 756 Employment taxes for household employees 757 Forms 941 and 944 — Deposit requirements 758 Form 941 — Employer’s Quarterly Federal Tax Return and Form 944 — Employer’s Annual Federal Tax Return 761 Tips — Withholding and reporting 762 Independent contractor vs. employee Electronic Media Filers — 1099 Series and Related Information Returns 801 802 803 804 805 Who must file magnetically Applications, forms, and information Waivers and extensions Test files and combined federal and state filing Electronic filing of information returns Tax Information for Aliens and U.S. Citizens Living Abroad 851 856 857 858 Resident and nonresident aliens Foreign tax credit Individual taxpayer identification number (ITIN) — Form W-7 Alien tax clearance Tax Information for Residents of Puerto Rico (in Spanish only) 901 902 903 904 Is a person with income from Puerto Rican sources required to file a U.S. federal income tax return? Credits and deductions for taxpayers with Puerto Rican source income that is exempt from U.S. tax Federal employment tax in Puerto Rico Tax assistance for residents of Puerto Rico Topic numbers are effective January 1, 2010. - 94 - Calling the IRS If you cannot find the answer to your question in these instructions or online, please call us for assistance. See Making the Call below. You will not be charged for the call unless your phone company charges you for toll-free calls. Our normal hours of operation are Monday through Friday from 7:00 a.m. to 10:00 p.m. local time. Assistance provided to callers from Alaska and Hawaii will be based on the hours of operation in the Pacific time zone. TIP If you want to check the status of your 2009 refund, see Refund Information on page 93. Before You Call IRS representatives care about the quality of the service provided to you, our customer. You can help us provide accurate, complete answers to your questions by having the following information available. • The tax form, schedule, or notice to which your question relates. • The facts about your particular situation. The answer to the same question often varies from one taxpayer to another because of differences in their age, income, whether they can be claimed as a dependent, etc. • The name of any IRS publication or other source of information that you used to look for the answer. To maintain your account security, you may be asked for the following information, which you should also have available. • Your social security number. • The amount of refund and filing status shown on your tax return. • The “Caller ID Number” shown at the top of any notice you received. • Your personal identification number (PIN) if you have one. • Your date of birth. • The numbers in your street address. • Your ZIP code. If you are asking for an installment agreement to pay your tax, you will be asked for the highest amount you can pay each month and the date on which you can pay it. Evaluation of services provided. The IRS call 1-800-829-4059). Our menu allows you to speak your responses or use your keypad to select a menu option. After receiving your menu selection, the system will direct your call to the appropriate assistance. Before You Hang Up If you do not fully understand the answer you receive, or you feel our representative may not fully understand your question, our representative needs to know this. He or she will be happy to take additional time to be sure your question is answered fully. By law, you are responsible for paying your share of federal income tax. If we should make an error in answering your question, you are still responsible for the payment of the correct tax. Should this occur, however, you will not be charged any penalty. uses several methods to evaluate our telephone service. One method is to record telephone calls for quality purposes only. A random sample of recorded calls is selected for review through the quality assurance process. Other methods include listening to live calls in progress and random selection of customers for participation in a customer satisfaction survey. Making the Call Call 1-800-829-1040 (hearing impaired customers with TTY/TDD equipment may - 95 - Quick and Easy Access to Tax Help and Tax Products TIP If you live outside the United States, see Pub. 54 to find out how to get help and tax products. Internet You can access the IRS website 24 hours a day, 7 days a week, at www.irs.gov. Phone Tax forms an d p ublications. Call 1-800-TAX-FORM Online services and help. Go to www.irs.gov to obtain information on: • Online Services — Conduct business with the IRS electronically. • Taxpayer Advocate Service — Helps taxpayers resolve problems with the IRS. • Free File and e-file — Free federal online filing. • Where’s My Refund — Your refund status anytime from anywhere. • Free Tax Return Preparation — Free tax assistance and preparation. • Recent Tax Changes — Highlights on newly enacted tax law. • Innocent Spouses — Tax information for innocent spouses. • Disaster Tax Relief — Tax relief provisions for disaster situations. • Identity Theft and Your Tax Records — Safeguard your identity and tax records. • Online Payment Agreement (OPA) Application — Online agreements. • Applying for Offers in Compromise — Information on offers in compromise. View and download products. Click on “Forms and Publications” (1-800-829-3676) to order current and prior year forms, instructions, and publications. You should receive your order within 10 working days. Tax help and questions. Call 1-800-829-1040. Hearing Impaired TTY/TDD. Call 1-800-829-4059. TeleTax information - 24 hour tax information. Call 1-800-829-4477. See pages 93 and 94 for topic numbers and details. Refund hotline. Call 1-800-829-1954. National Taxpayer Advocate helpline. Call 1-877-777-4778. Walk-In You can pick up some of the most requested forms, instructions, and publications at many IRS offices, post offices, and libraries. Also, some grocery stores, copy centers, city and county government offices, and credit unions have reproducible tax products available to photocopy or print from a DVD. Mail You can order forms, instructions, and publications by completing the order blank on page 99. You should receive your order within 10 days after we receive your request. or go to www.irs.gov/formspubs to: • View or download current and previous year tax products. • Order current year tax products online. The Forms and Publications page provides links to access and acquire both electronic and print media. Additionally, the “Search” function provides basic and advanced search capabilities for published products available on www.irs.gov. Online ordering of products. To order tax products delivered by DVD Buy IRS Publication 1796 (IRS Tax Products DVD) for $30. Price is subject to change. There may be a handling fee. The DVD includes current-year and prior-year forms, instructions, and publications; Internal Revenue Bulletins; and toll-free and email technical support. The DVD is released twice during the year. The first release will ship early January 2010 and the final release will ship early March 2010. Internet. Buy the DVD from: mail, go to www.irs.gov/formspubs. • For current year products, click on “Forms and publications by U.S. mail.” • For a tax booklet of forms and instructions, click on “Tax packages.” • For tax products on a DVD, click on “Tax products on DVD (Pub. 1796).” See DVD on this page. TIP To get information, forms, and publications in Spanish, click “Espanol” in the upper right corner of www.irs.gov. • National Technical Information Service (NTIS) at www.irs.gov/cdorders • Government Printing Office (GPO) at http:// bookstore.gpo.gov (search for Pub. 1796) Telephone. Buy the DVD from: Other ways to get help. See page 92 for information. • NTIS at 1-877-233-6767 • GPO at 1-866-512-1800 - 96 - Disclosure, Privacy Act, and Paperwork Reduction Act Notice The IRS Restructuring and Reform Act of 1998, the Privacy Act of 1974, and the Paperwork Reduction Act of 1980 require that when we ask you for information we must first tell you our legal right to ask for the information, why we are asking for it, and how it will be used. We must also tell you what could happen if we do not receive it and whether your response is voluntary, required to obtain a benefit, or mandatory under the law. This notice applies to all papers you file with us, including this tax return. It also applies to any questions we need to ask you so we can complete, correct, or process your return; figure your tax; and collect tax, interest, or penalties. Our legal right to ask for information is Internal Revenue Code sections 6001, 6011, and 6012(a), and their regulations. They say that you must file a return or statement with us for any tax you are liable for. Your response is mandatory under these sections. Code section 6109 requires filers and paid preparers to provide their social security number or other identifying number. This is so we know who you are, and can process your return and other papers. You must fill in all parts of the tax form that apply to you. But you do not have to check the boxes for the Presidential Election Campaign Fund or for the third-party designee. You also do not have to provide your daytime phone number. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. We ask for tax return information to carry out the tax laws of the United States. We need it to figure and collect the right amount of tax. If you do not file a return, do not provide the information we ask for, or provide fraudulent information, you may be charged penalties and be subject to criminal prosecution. We may also have to disallow the exemptions, exclusions, credits, deductions, or adjustments shown on the tax return. This could make the tax higher or delay any refund. Interest may also be charged. Generally, tax returns and return information are confidential, as stated in Code section 6103. However, Code section 6103 allows or requires the Internal Revenue Service to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of Justice to enforce the tax laws, both civil and criminal, and to cities, states, the District of Columbia, and U.S. commonwealths or possessions to carry out their tax laws. We may disclose your tax information to the Department of Treasury and contractors for tax administration purposes; and to other persons as necessary to obtain information needed to determine the amount of or to collect the tax you owe. We may disclose your tax information to the Comptroller General of the United States to permit the Comptroller General to review the Internal Revenue Service. We may disclose your tax information to committees of Congress; federal, state, and local child support agencies; and to other federal agencies for the purposes of determining entitlement for benefits or the eligibility for and the repayment of loans. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. Please keep this notice with your records. It may help you if we ask you for other information. If you have questions about the rules for filing and giving information, please call or visit any Internal Revenue Service office. We Welcome Comments on Forms We try to create forms and instructions that can be easily understood. Often this is difficult to do because our tax laws are very complex. For some people with income mostly from wages, filling in the forms is easy. For others who have businesses, pensions, stocks, rental income, or other investments, it is more difficult. If you have suggestions for making these forms simpler, we would be happy to hear from you. You can email us at *[email protected] (The asterisk must be included in the address.) Enter “Forms Comment” on the subject line. Or you can write to Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send your return to this address. Instead, see the back cover. - 97 - Estimates of Taxpayer Burden The table below shows burden estimates as of October 2009 for taxpayers filing a 2009 Form 1040, 1040A, or 1040EZ tax return. Time spent and out-of-pocket costs are presented separately. Time burden is broken out by taxpayer activity, with recordkeeping representing the largest component. Out-of-pocket costs include any expenses incurred by taxpayers to prepare and submit their tax returns. Examples include tax return preparation and submission fees, postage and photocopying costs, and tax preparation software costs. While these estimates do not in- clude burden associated with post-filing activities, IRS operational data indicate that electronically prepared and filed returns have fewer arithmetic errors, implying lower post-filing burden. Reported time and cost burdens are national averages and do not necessarily reflect a “typical” case. For instance, the estimated average time burden for all taxpayers filing a Form 1040, 1040A, or 1040EZ is 17.3 hours, with an average cost of $225 per return. This average includes all associated forms and schedules, across all preparation methods and taxpayer activities. Taxpayers filing Form 1040 are expected to have an average burden of about 21.4 hours, with taxpayers filing Form 1040A or Form 1040EZ averaging about 8.0 hours. Within each of these estimates there is significant variation in taxpayer activity. Similarly, tax preparation fees vary extensively depending on the tax situation of the taxpayer, the type of professional preparer, and the geographic area. If you have comments concerning the time and cost estimates below, you can contact us at either one of the addresses shown under We Welcome Comments on Forms on page 97. Estimated Average Taxpayer Burden for Individuals by Activity The average time and costs required to complete and file Form 1040, Form 1040A, Form 1040EZ, their schedules, and accompanying forms will vary depending on individual circumstances. The estimated averages are: Average Time Burden (Hours) Primary Form Filed or Type of Taxpayer Percentage of Returns Total Time Record Keeping Tax Planning Form Completion Form Submission All Other Average Cost (Dollars) All taxpayers . . . . . . . . Primary forms filed 1040 . . . . . . . . . . 1040A & 1040EZ . Type of taxpayer Nonbusiness* . . . . Business* . . . . . . ... ... ... ... ... 100 70 30 69 31 17.3 21.4 8.0 10.7 31.9 8.0 10.2 2.7 4.1 16.5 1.7 2.1 0.8 1.1 3.0 4.3 5.2 2.3 3.0 7.1 1.0 1.0 0.8 0.8 1.2 2.4 2.9 1.3 1.7 4.0 $225 280 96 129 434 * You are considered a “business” filer if you file one or more of the following with Form 1040: Schedule C, C-EZ, E, or F or Form 2106 or 2106-EZ. You are considered a “nonbusiness” filer if you did not file any of those schedules or forms with Form 1040 or if you file Form 1040A or 1040EZ. - 98 - Order Form for Forms and Publications How To Use the Order Form Circle the items you need on the order form below. Use the blank spaces to order items not listed. If you need more space, attach a separate sheet of paper. Print or type your name and address accurately in the space provided below to en- The most frequently ordered forms and publications are listed on the order form below. You will receive two copies of each form, one copy of the instructions, and one copy of each publication you order. To help reduce waste, please order only the items you need to prepare your return. TIP For faster ways of getting the items you need, go to www.irs.gov/formspubs. sure delivery of your order. Enclose the order form in an envelope and mail it to the IRS address shown on this page. You should receive your order within 10 days after receipt of your request. Do not send your tax return to the address shown on this page. Instead, see the back cover. Mail Your Order Form To: Internal Revenue Service 1201 N. Mitsubishi Motorway Bloomington, IL 61705-6613 Cut here Save Money and Time by Going Online! Download or order these and other tax products at www.irs.gov/formspubs Order Form Please Print Name Postal mailing address City Foreign country Daytime phone number ( ) Schedule F (1040) Schedule H (1040) Schedule J (1040) Schedule L (1040A or 1040) Schedule M (1040A or 1040) Schedule R (1040A or 1040) 1040-ES (2010) 8917 Apt./Suite/Room State ZIP code International postal code Circle the forms and publications you need. The instructions for any form you order will be included. 1040 4868 Pub. 523 Pub. 554 Pub. 946 Schedule A (1040) 1040-V 5405 9465 Pub. 525 Pub. 575 Pub. 970 Use the blank spaces to order items not listed. Schedule B (1040A or 1040) Schedule C (1040) Schedule C-EZ (1040) Schedule D (1040) 1040X 6251 Pub. 1 Pub. 526 Pub. 583 Pub. 972 2106 8283 Pub. 17 Pub. 527 Pub. 587 Pub. 4681 2441 8606 Pub. 334 Pub. 529 Pub. 590 4506 8812 Pub. 463 Pub. 535 Pub. 596 Schedule D-1 Schedule SE (1040) (1040) Schedule E (1040) Schedule EIC (1040A or 1040) 1040A 4506-T 8822 Pub. 501 Pub. 547 Pub. 910 4562 8829 Pub. 502 Pub. 550 Pub. 915 1040EZ 4684 8863 Pub. 505 Pub. 551 Pub. 919 N Major Categories of Federal Income and Outlays for Fiscal Year 2008 Income and Outlays. These pie charts show the relative sizes of the major categories of federal income and outlays for fiscal year 2008. Income Social security, Medicare, and unemployment and other retirement taxes 30% Personal income taxes 39% Outlays Law enforcement and general government 2% Social security, Medicare, and other retirement 1 37% Borrowing to cover deficit 15% Corporate income taxes 10% Excise, customs, estate, gift, and miscellaneous taxes 6% Social programs 4 20% Physical, human, and community development 3 9% Net interest on the debt 8% National defense, veterans, and foreign affairs 2 24% On or before the first Monday in February of each year, the President is required by law to submit to the Congress a budget proposal for the fiscal year that begins the following October. The budget plan sets forth the President’s proposed receipts, spending, and the surplus or deficit for the Federal Government. The plan includes recommendations for new legislation as well as recommendations to change, eliminate, and add programs. After receiving the President’s proposal, the Congress reviews it and makes changes. It first passes a budget resolution setting its own targets for receipts, outlays, and the surplus or deficit. Next, individual spending and revenue bills that are consistent with the goals of the budget resolution are enacted. In fiscal year 2008 (which began on October 1, 2007, and ended on September 30, 2008), federal income was $2.524 trillion and outlays were $2.983 trillion, leaving a deficit of $459 billion. Footnotes for Certain Federal Outlays 1. Social security, Me d icare, an d other retirement: These programs provide income support for the retired and disabled and medical care for the elderly. 2. National defense, veterans, and foreign affairs: About 20% of outlays were to equip, modernize, and pay our armed forces and to fund national defense activities; about 3% were for veterans benefits and services; and about 1% were for international activities, including military and economic assistance to foreign countries and the maintenance of U.S. embassies abroad. 3. Physical, human, and community development: These outlays were for agriculture; natural resources; environment; transportation; aid for elementary and secondary education and direct assistance to college students; job training; deposit insurance, commerce and housing credit, and community development; and space, energy, and general science programs. 4. Social programs: About 14% of total outlays were for Medicaid, food stamps, temporary assistance for needy families, supplemental security income, and related programs; and the remaining outlays were for health research and public health programs, unemployment compensation, assisted housing, and social services. Note. The percentages on this page exclude undistributed offsetting receipts, which were $86 billion in fiscal year 2008. In the budget, these receipts are offset against spending in figuring the outlay totals shown above. These receipts are for the U.S. Government’s share of its employee retirement programs, rents and royalties on the Outer Continental Shelf, and proceeds from the sale of assets. - 100 - 2009 Tax Rate Schedules Schedule X—If your filing status is Single If your taxable income is: Over— But not over— The Tax Rate Schedules are shown so you can see the tax rate that applies to all levels of taxable income. Do not use them to figure your tax. Instead, see the instructions for line 44 that begin on page 37. CAUTION The tax is: of the amount over— $0 8,350 33,950 82,250 171,550 372,950 $8,350 33,950 82,250 171,550 372,950 10% $835.00 + 15% 4,675.00 + 25% 16,750.00 + 28% 41,754.00 + 33% 108,216.00 + 35% $0 8,350 33,950 82,250 171,550 372,950 Schedule Y-1—If your filing status is Married filing jointly o r Qualifying widow(er) If your taxable income is: Over— But not over— The tax is: of the amount over— $0 16,700 67,900 137,050 208,850 372,950 $16,700 67,900 137,050 208,850 372,950 10% $1,670.00 + 15% 9,350.00 + 25% 26,637.50 + 28% 46,741.50 + 33% 100,894.50 + 35% $0 16,700 67,900 137,050 208,850 372,950 Schedule Y-2—If your filing status is Married filing separately If your taxable income is: Over— But not over— The tax is: of the amount over— $0 8,350 33,950 68,525 104,425 186,475 $8,350 33,950 68,525 104,425 186,475 10% $835.00 + 15% 4,675.00 + 25% 13,318.75 + 28% 23,370.75 + 33% 50,447.25 + 35% $0 8,350 33,950 68,525 104,425 186,475 Schedule Z—If your filing status is Head of household If your taxable income is: Over— But not over— The tax is: of the amount over— $0 11,950 45,500 117,450 190,200 372,950 $11,950 45,500 117,450 190,200 372,950 10% $1,195.00 + 15% 6,227.50 + 25% 24,215.00 + 28% 44,585.00 + 33% 104,892.50 + 35% $0 11,950 45,500 117,450 190,200 372,950 - 101 - Department of the Treasury Internal Revenue Service 2009 Instructions for Schedule A (Form 1040) Itemized Deductions Use Schedule A (Form 1040) to figure your itemized deductions. In most cases, your federal income tax will be less if you take the larger of your itemized deductions or your standard deduction. If you itemize, you can deduct a part of your medical and dental expenses and unreimbursed employee business expenses, and amounts you paid for certain taxes, interest, contributions, and miscellaneous expenses. You can also deduct certain casualty and theft losses. If you and your spouse paid expenses jointly and are filing separate returns for 2009, see Pub. 504 to figure the portion of joint expenses that you can claim as itemized deductions. Do not include on Schedule A items deducted elsewhere, such as on Form 1040 or Schedule C, C-EZ, E, or F. Section references are to the Internal Revenue Code unless otherwise noted. Medical and Dental Expenses You can deduct only the part of your medical and dental expenses that exceeds 7.5% of the amount on Form 1040, line 38. Pub. 502 discusses the types of expenses you can and cannot deduct. It also explains when you can deduct capital expenses and special care expenses for disabled persons. What’s New Schedule B. Schedule B, Interest and Ordi- nary Dividends, is no longer associated with Schedule A. Schedules A and B are now separate schedules. New motor vehicle taxes. You can deduct certain state and local sales and excise taxes you paid in 2009 for the purchase of a new motor vehicle. If your state does not have a sales tax, you may be able to deduct certain other fees or taxes. See the instructions for line 7 on page A-6. Increase in personal casualty and theft loss limit. Generally, each personal casualty or If, during 2009, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation pension recipient, you must reduce your insurance premiums by any amounts used to figure the health coverage tax credit. See the instructions for line 1 on page A-2. If you received a distribution from a health savings account or a medical savings account in 2009, see Pub. 969 to figure your deduction. theft loss is limited to the excess of the loss over $500. In addition, the 10%-of-adjusted-gross-income (AGI) limit continues to apply to the net loss. Credit or debit card convenience fees. If you pay your income tax (including estimated tax payments) by credit or debit card, you may be able to deduct the convenience fee you are charged by the card processor to pay using your credit or debit card. See the instructions for line 23 that begins on page A-10. Standard mileage rates. The 2009 rate for Examples of Medical and Dental Payments You Can Deduct To the extent you were not reimbursed, you can deduct what you paid for: • Insurance premiums for medical and dental care, including premiums for qualified long-term care contracts as defined in Pub. 502. But see Limit on long-term care premiums you can deduct on page A-2. Reduce the insurance premiums by any self-employed health insurance deduction you claimed on Form 1040, line 29. You cannot deduct insurance premiums paid with pretax dollars because the premiums are not included in box 1 of your Form(s) W-2. If you are a retired public safety officer, you cannot deduct any premiums you paid to the extent they were paid for with a tax-free distribution from your retirement plan. use of your vehicle to get medical care is 24 cents a mile. The special rate for charitable use of your vehicle to provide relief related to a Midwestern disaster area has expired. tists, eye doctors, medical doctors, occupational therapists, osteopathic doctors, physical therapists, podiatrists, psychiatrists, psychoanalysts (medical care only), and psychologists. • Medical examinations, X-ray and laboratory services, insulin treatment, and whirlpool baths your doctor ordered. • Diagnostic tests, such as a full-body scan, pregnancy test, or blood sugar test kit. • Nursing help (including your share of the employment taxes paid). If you paid someone to do both nursing and housework, you can deduct only the cost of the nursing help. • Hospital care (including meals and lodging), clinic costs, and lab fees. • Qualified long-term care services (see Pub. 502). • The supplemental part of Medicare insurance (Medicare B). • The premiums you pay for Medicare Part D insurance. • A program to stop smoking and for prescription medicines to alleviate nicotine withdrawal. • Prescription medicines or insulin. • Acupuncturists, chiropractors, den- A-1 Cat. No. 53061X • A weight-loss program as treatment for a specific disease (including obesity) diagnosed by a doctor. • Medical treatment at a center for drug or alcohol addiction. • Medical aids such as eyeglasses, contact lenses, hearing aids, braces, crutches, wheelchairs, and guide dogs, including the cost of maintaining them. • Surgery to improve defective vision, such as laser eye surgery or radial keratotomy. • Lodging expenses (but not meals) while away from home to receive medical care in a hospital or a medical care facility related to a hospital, provided there was no significant element of personal pleasure, recreation, or vacation in the travel. Do not deduct more than $50 a night for each eligible person. • Ambulance service and other travel costs to get medical care. If you used your own car, you can claim what you spent for gas and oil to go to and from the place you received the care; or you can claim 24 cents a mile. Add parking and tolls to the amount you claim under either method. Note. Certain medical expenses paid out of self-employment tax or household employment taxes. If you were age 65 or older but not entitled to social security TIP benefits, you can deduct premiums you voluntarily paid for Medicare A coverage. • Nursing care for a healthy baby. But you may be able to take a credit for the amount you paid. See the instructions for Form 1040, line 48. • Illegal operations or drugs. • Imported drugs not approved by the U.S. Food and Drug Administration (FDA). This includes foreign-made versions of U.S.-approved drugs manufactured without FDA approval. • Nonprescription medicines (including nicotine gum and certain nicotine patches). • Travel your doctor told you to take for rest or a change. • Funeral, burial, or cremation costs. • Your child whom you do not claim as a dependent because of the rules for children of divorced or separated parents. • Any person you could have claimed as a dependent on your return except that person received $3,650 or more of gross income or filed a joint return. • Any person you could have claimed as a dependent except that you, or your spouse if filing jointly, can be claimed as a dependent on someone else’s 2009 return. Example. You provided over half of your mother’s support but cannot claim her as a dependent because she received wages of $3,650 in 2009. You can include on line 1 any medical and dental expenses you paid in 2009 for your mother. Reimbursements. If your insurance com- turn. • Yourself and your spouse. • All dependents you claim on your re- Line 1 Medical and Dental Expenses Enter the total of your medical and dental expenses (see page A-1), after you reduce these expenses by any payments received from insurance or other sources. See Reimbursements on this page. a deceased taxpayer’s estate can be claimed on the deceased taxpayer’s final return. See Pub. 502 for details. Limit on long-term care premiums you can deduct. The amount you can deduct for qualified long-term care contracts (as defined in Pub. 502) depends on the age, at the end of 2009, of the person for whom the premiums were paid. See the chart below for details. IF the person was, at the end of 2009, age . . . THEN the most you can deduct is . . . Do not forget to include insurance premiums you paid for medical and dental care. But if you claimed the self-employed health insurance deduction on Form 1040, line 29, reduce the premiums by the amount on line 29. TIP pany paid the provider directly for part of your expenses, and you paid only the amount that remained, include on line 1 only the amount you paid. If you received a reimbursement in 2009 for medical or dental expenses you paid in 2009, reduce your 2009 expenses by this amount. If you received a reimbursement in 2009 for prior year medical or dental expenses, do not reduce your 2009 expenses by this amount. But if you deducted the expenses in the earlier year and the deduction reduced your tax, you must include the reimbursement in income on Form 1040, line 21. See Pub. 502 for details on how to figure the amount to include. Cafeteria plans. Do not include on line 1 40 or under 41–50 51–60 61–70 71 or older $ 320 $ 600 $ 1,190 $ 3,180 $ 3,980 sary to improve a deformity related to a congenital abnormality, an injury from an accident or trauma, or a disfiguring disease. • Life insurance or income protection policies. • The Medicare tax on your wages and tips or the Medicare tax paid as part of the Examples of Medical and Dental Payments You Cannot Deduct • The cost of diet food. • Cosmetic surgery unless it was neces- Note. If, during 2009, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation pension recipient, you must complete Form 8885 before completing Schedule A, line 1. When figuring the amount of insurance premiums you can deduct on Schedule A, do not include: • Any amounts you included on Form 8885, line 4, • Any qualified health insurance premiums you paid to “U.S. Treasury — HCTC,” or • Any health coverage tax credit advance payments shown in box 1 of Form 1099-H. Whose medical and dental expenses can you include? You can include medical and insurance premiums paid by an employer-sponsored health insurance plan (cafeteria plan) unless the premiums are included in box 1 of your Form(s) W-2. Also, do not include any other medical and dental expenses paid by the plan unless the amount paid is included in box 1 of your Form(s) W-2. Taxes You Paid Taxes You Cannot Deduct • Federal income and most excise taxes. • Social security, Medicare, federal un- dental bills you paid for anyone who was one of the following either when the services were provided or when you paid for them. employment (FUTA), and railroad retirement (RRTA) taxes. • Customs duties. • Federal estate and gift taxes. But see the instructions for line 28 on page A-11. • Certain state and local taxes, including: tax on gasoline, car inspection fees, assessments for sidewalks or other improvements to your property, tax you paid for someone else, and license fees (marriage, driver’s, dog, etc.). A-2 Line 5 You can elect to deduct state and local general sales taxes instead of state and local income taxes. Y ou cannot deduct both. State and Local Income Taxes If you deduct state and local income taxes, check box a on line 5. Include on this line the state and local income taxes listed below. • State and local income taxes withheld from your salary during 2009. Your Form(s) W-2 will show these amounts. Forms W-2G, 1099-G, 1099-R, and 1099-MISC may also show state and local income taxes withheld. • State and local income taxes paid in 2009 for a prior year, such as taxes paid with your 2008 state or local income tax return. Do not include penalties or interest. • State and local estimated tax payments made during 2009, including any part of a prior year refund that you chose to have credited to your 2009 state or local income taxes. • Mandatory contributions you made to the California, New Jersey, or New York Nonoccupational Disability Benefit Fund, Rhode Island Temporary Disability Benefit Fund, or Washington State Supplemental Workmen’s Compensation Fund. • Mandatory contributions to the Alaska, New Jersey, or Pennsylvania state unemployment fund. Do not reduce your deduction by any: • State or local income tax refund or credit you expect to receive for 2009, or • Refund of, or credit for, prior year state and local income taxes you actually received in 2009. Instead, see the instructions for Form 1040, line 10. on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. Motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. Also include any state and local general sales taxes paid for a leased motor vehicle. Do not include sales taxes paid on items used in your trade or business. You must keep your actual receipts showing general sales taxes paid to use this method. Refund of general sales taxes. If you received a refund of state or local general sales taxes in 2009 for amounts paid in 2009, reduce your actual 2009 state and local general sales taxes by this amount. If you received a refund of state or local general sales taxes in 2009 for prior year purchases, do not reduce your 2009 state and local general sales taxes by this amount. But if you deducted your actual state and local general sales taxes in the earlier year and the deduction reduced your tax, you may have to include the refund in income on Form 1040, line 21. See Recoveries in Pub. 525 for details. Optional Sales Tax Tables Instead of using your actual expenses, you can use the tables on pages A-12 through A-14 to figure your state and local general sales tax deduction. You may also be able to add the state and local general sales taxes paid on certain specified items. To figure your state and local general sales tax deduction using the tables, complete the worksheet on page A-4 or use the 2009 Sales Tax Deduction Calculator on the IRS website. To use the 2009 Sales Tax Deduction Calculator, go to www.irs.gov and enter “Sales tax deduction calculator” in the search box. • A voucher received or payment made for such voucher under the CARS “cash for clunkers” program. • Veterans’ benefits. • Nontaxable combat pay. • Workers’ compensation. • Nontaxable unemployment compensation. • Nontaxable part of social security and railroad retirement benefits. • Nontaxable part of IRA, pension, or annuity distributions. Do not include rollovers. • Public assistance payments. • Economic recovery payments. The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. What if you lived in more than one state? If you lived in more than one state during 2009, look up the table amount for each state using the above rules. If there is no table for your state, the table amount is considered to be zero. Multiply the table amount for each state you lived in by a fraction. The numerator of the fraction is the number of days you lived in the state during 2009 and the denominator is the total number of days in the year (365). Enter the total of the prorated table amounts for each state on line 1. However, if you also lived in a locality during 2009 that imposed a local general sales tax, do not enter the total on line 1. Instead, complete a separate worksheet for each state you lived in and enter the prorated amount for that state on line 1. Example. You lived in State A from January 1 through August 31, 2009 (243 days), and in State B from September 1 through December 31, 2009 (122 days). The table amount for State A is $500. The table amount for State B is $400. You would figure your state general sales tax as follows. State A: State B: Total $500 x 243/365 = $400 x 122/365 = = $333 134 $467 State and Local General Sales Taxes If you elect to deduct state and local general sales taxes, you must check box b on line 5. To figure your deduction, you can use either your actual expenses or the optional sales tax tables. If your filing status is married filing separately, both you and your spouse elect to deduct sales taxes, and your spouse elects to use the optional sales tax tables, you also must use the tables to figure your state and local general sales tax deduction. You cannot deduct new motor vehicle taxes on line 7 of Schedule A if you make this election. Instructions for Line 5b Worksheet Line 1. If you lived in the same state for all If none of the localities in which you lived during 2009 imposed a local general sales tax, enter $467 on line 1 of your worksheet. Otherwise, complete a separate worksheet for State A and State B. Enter $333 on line 1 of the State A worksheet and $134 on line 1 of the State B worksheet. Line 2. If you checked the “No” box, enter Actual Expenses Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2009 if the tax rate was the same as the general sales tax rate. However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. If you paid sales tax of 2009, enter the applicable amount, based on your 2009 income and exemptions, from the optional state sales tax table for your state on page A-12 or A-13. Read down the “At least – But less than” columns for your state and find the line that includes your 2009 income. If married filing separately, do not include your spouse’s income. Your 2009 income is the amount shown on your Form 1040, line 38, plus any nontaxable items, such as the following. • Tax-exempt interest. -0- on line 2, and go to line 3. If you checked the “Yes” box and lived in the same locality for all of 2009, enter the applicable amount, based on your 2009 income and exemptions, from the optional local sales tax table for your locality on page A-14. Read down the “At least – But less than” columns for your locality and find the line that includes your 2009 income. See the line 1 instructions on this page to figure your 2009 income. The ex- A-3 emptions column refers to the number of exemptions claimed on Form 1040, line 6d. What if you lived in more than one locality? If you lived in more than one locality during 2009, look up the table amount for each locality using the above rules. If there is no table for your locality, the table amount is considered to be zero. Multiply the table amount for each locality you lived in by a fraction. The numerator of the fraction is the number of days you lived in the locality during 2009 and the denominator is the total number of days in the year (365). If you lived in more than one locality in the same state and the local general sales tax rate was the same for each locality, enter the total of the prorated table amounts for each locality in that state on line 2. Otherwise, complete a separate worksheet for lines 2 through 6 for each locality and enter each prorated table amount on line 2 of the applicable worksheet. Example. You lived in Locality 1 from January 1 through August 31, 2009 (243 days), and in Locality 2 from September 1 through December 31, 2009 (122 days). The table amount for Locality 1 is $100. The table amount for Locality 2 is $150. You would figure the amount to enter on line 2 as follows. Note that this amount may not equal your local sales tax deduction, which is figured on line 6 of the worksheet. State and Local General Sales Tax Deduction Worksheet—Line 5b (See the Instructions for Line 5b Worksheet that begin on page A-3.) Before you begin: See the instructions for line 1 on page A-3 if you: Lived in more than one state during 2009, or Had any nontaxable income in 2009. Keep for Your Records 1. Enter your state general sales taxes from the applicable table on page A-12 or A-13 (see page A-3) . . 1. $ Next. If, for all of 2009, you lived only in Connecticut, the District of Columbia, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Jersey, Rhode Island, or West Virginia, skip lines 2 through 5, enter -0- on line 6, and go to line 7. Otherwise, go to line 2. 2. Did you live in Alaska, Arizona, Arkansas, California (Los Angeles County only), Colorado, Georgia, Illinois, Louisiana, Missouri, New York State, North Carolina, South Carolina, Tennessee, Utah, or Virginia in 2009? No. Enter -0Yes. Enter your local general sales taxes from the applicable table on page A-14 (see page A-3) } ........... 2. $ 3. Did your locality impose a local general sales tax in 2009? Residents of California and Nevada see page A-5. No. Skip lines 3 through 5, enter -0- on line 6, and go to line 7. Yes. Enter your local general sales tax rate, but omit the percentage sign. For example, if your local general sales tax rate was 2.5%, enter 2.5. If your local general sales tax rate changed or you lived in more than one locality in the same state during 2009, see page A-5. (If you do not know your local general sales tax rate, contact your local government.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Did you enter -0- on line 2 above? No. Skip lines 4 and 5 and go to line 6. Yes. Enter your state general sales tax rate (shown in the table heading for your state), but omit the percentage sign. For example, if your state general sales tax rate is 6%, enter 6.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Divide line 3 by line 4. Enter the result as a decimal (rounded to at least three places) 5. 6. Did you enter -0- on line 2 above? No. Multiply line 2 by line 3 Yes. Multiply line 1 by line 5. If you lived in more than one locality in the same state during 2009, see the instructions on page A-5 . . . } . . . . . . . . . . . . . . . . . . 6. $ 7. Enter your state and local general sales taxes paid on specified items, if any (see page A-5) . . . . . . . . 7. $ 8. Deduction for general sales taxes. Add lines 1, 6, and 7. Enter the result here and the total from all your state and local general sales tax deduction worksheets, if you completed more than one, on Schedule A, line 5. Be sure to check box b on that line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. $ A-4 Locality 1: Locality 2: Total $100 x 243/365 = $150 x 122/365 = = $ 67 50 $117 Locality 1: Locality 2: 1.00 x 243/365 = 1.75 x 122/365 = 0.666 0.585 Line 6. If you lived in more than one localLine 3. If you lived in California, check the “No” box if your combined state and local general sales tax rate is 8.0034%. Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 8.0034%. If you lived in Nevada, check the “No” box if your combined state and local general sales tax rate is 6.6764%. Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 6.6764%. What if your local general sales tax rate changed during 2009? If you checked the “Yes” box and your local general sales tax rate changed during 2009, figure the rate to enter on line 3 as follows. Multiply each tax rate for the period it was in effect by a fraction. The numerator of the fraction is the number of days the rate was in effect during 2009 and the denominator is the total number of days in the year (365). Enter the total of the prorated tax rates on line 3. Example. Locality 1 imposed a 1% local general sales tax from January 1 through September 30, 2009 (273 days). The rate increased to 1.75% for the period from October 1 through December 31, 2009 (92 days). You would enter “1.189” on line 3, figured as follows. January 1 – September 30: October 1 – December 31: Total 1.00 x 273/365 = 1.75 x 92/365 = = 0.748 0.441 1.189 ity in the same state during 2009, you should have completed line 1 only on the first worksheet for that state and separate worksheets for lines 2 through 6 for any other locality within that state in which you lived during 2009. If you checked the “Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by the amount that you entered on line 1 for that state on the first worksheet. Line 7. Enter on line 7 any state and local used for business, but only if the taxes are based on the assessed value of the property. Also, the assessment must be made uniformly on property throughout the community, and the proceeds must be used for general community or governmental purposes. Pub. 530 explains the deductions homeowners can take. Do not include the following amounts on line 6. general sales taxes paid on the following specified items. If you are completing more than one worksheet, include the total for line 7 on only one of the worksheets. 1. A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle). Also include any state and local general sales taxes paid for a leased motor vehicle. If the state sales tax rate on these items is higher than the general sales tax rate, only include the amount of tax you would have paid at the general sales tax rate. 2. An aircraft or boat, if the tax rate was the same as the general sales tax rate. 3. A home (including a mobile home or prefabricated home) or substantial addition to or major renovation of a home, but only if the tax rate was the same as the general sales tax rate and any of the following applies. a. Your state or locality imposes a general sales tax directly on the sale of a home or on the cost of a substantial addition or major renovation. b. You purchased the materials to build a home or substantial addition or to perform a major renovation and paid the sales tax directly. c. Under your state law, your contractor is considered your agent in the construction of the home or substantial addition or the performance of a major renovation. The contract must state that the contractor is authorized to act in your name and must follow your directions on construction decisions. In this case, you will be considered to have purchased any items subject to a sales tax and to have paid the sales tax directly. Do not include sales taxes paid on items used in your trade or business. If you received a refund of state or local general sales taxes in 2009, see Refund of general sales taxes on page A-3. • Itemized charges for services to specific property or persons (for example, a $20 monthly charge per house for trash collection, a $5 charge for every 1,000 gallons of water consumed, or a flat charge for mowing a lawn that had grown higher than permitted under a local ordinance). • Charges for improvements that tend to increase the value of your property (for example, an assessment to build a new sidewalk). The cost of a property improvement is added to the basis of the property. However, a charge is deductible if it is used only to maintain an existing public facility in service (for example, a charge to repair an existing sidewalk, and any interest included in that charge). If your mortgage payments include your real estate taxes, you can deduct only the amount the mortgage company actually paid to the taxing authority in 2009. If you sold your home in 2009, any real estate tax charged to the buyer should be shown on your settlement statement and in box 5 of any Form 1099-S you received. This amount is considered a refund of real estate taxes. See Refunds and rebates below. Any real estate taxes you paid at closing should be shown on your settlement statement. What if you lived in more than one locality in the same state during 2009? Complete a separate worksheet for lines 2 through 6 for each locality in your state if you lived in more than one locality in the same state during 2009 and either of the following applies. • Each locality did not have the same local general sales tax rate. • You lived in Los Angeles County, CA. To figure the amount to enter on line 3 of the worksheet for each locality in which you lived (except a locality for which you used the table on page A-14 to figure your local general sales tax deduction), multiply the local general sales tax rate by a fraction. The numerator of the fraction is the number of days you lived in the locality during 2009 and the denominator is the total number of days in the year (365). Example. You lived in Locality 1 from January 1 through August 31, 2009 (243 days), and in Locality 2 from September 1 through December 31, 2009 (122 days). The local general sales tax rate for Locality 1 is 1%. The rate for Locality 2 is 1.75%. You would enter “0.666” on line 3 for the Locality 1 worksheet and “0.585” for the Locality 2 worksheet, figured as follows. You must look at your real estate tax bill to decide if any nondeductible itemized charges, such as those listed above, are included in the bill. If your taxing authority (or lender) does not furnish you a copy of your real estate tax bill, ask for it. Refunds and rebates. If you received a re- Line 6 Real Estate Taxes Include taxes (state, local, or foreign) you paid on real estate you own that was not fund or rebate in 2009 of real estate taxes you paid in 2009, reduce your deduction by the amount of the refund or rebate. If you received a refund or rebate in 2009 of real estate taxes you paid in an earlier year, do not reduce your deduction by this amount. Instead, you must include the refund or rebate in income on Form 1040, line 21, if you deducted the real estate taxes in the earlier year and the deduction reduced your tax. See Recoveries in Pub. 525 for details on how to figure the amount to include in income. A-5 Line 7 New Motor Vehicle Taxes If you elected to deduct state and local general sales taxes on line 5b, you cannot deduct new motor vehicle taxes on line 7. You may be able to deduct state and local sales and excise taxes (or certain other taxes or fees in a state without a sales tax) paid after February 16, 2009, for the purchase of any new motor vehicle(s). To figure the amount you can deduct, you will need to complete the Worksheet for Line 7 on the back of Schedule A. If the amount on Form 1040, line 38, is equal to or greater than $135,000 ($260,000 if married filing jointly), you cannot deduct these taxes. Instructions for Worksheet for Line 7 Line 1. Enter the state or local sales and excise taxes from your sales invoice(s) relating to any new motor vehicle(s) (defined below) you purchased after February 16, 2009. States with no sales tax. The states of Alaska, Delaware, Hawaii, Montana, New Hampshire, and Oregon do not have a sales tax. However, you may be charged other taxes or fees on the purchase of a new motor vehicle in one of these six states that is similar to a sales tax. The taxes or fees that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle’s sales price or as a per unit fee. You can include these taxes and fees on line 1 of the Worksheet for Line 7. One example of a fee you can include on line 1 of the worksheet is the 3.75% document fee when registering a title with the Delaware Division of Motor Vehicles. The fee is 3.75% of the purchase price. New motor vehicle. A new motor vehicle is any of the following. The original use of the vehicle must begin with you. • A passenger automobile or light truck that is self propelled, designed to transport people or property on a street or highway, and the gross vehicle weight rating of the vehicle is not more than 8,500 pounds. • A motorcycle (defined below) with a gross vehicle weight rating of not more than 8,500 pounds. • A motor home (defined below). Motorcycle. A vehicle with motive power having a seat or saddle for the use of the rider and designed to travel on not more than three wheels in contact with the ground. Motor home. A multi-purpose vehicle with motive power that is designed to provide temporary residential accommodations, as evidenced by the presence of at least four of the following facilities. • Cooking. • Refrigeration or ice box. ing a faucet and sink. • Separate 110-125 volt electrical power supply and/or propane. Line 2. Enter on line 2 the cost of the new motor vehicle(s). Do not include on line 2 any state or local sales or excise taxes you entered on line 1. Line 3. If you check the “Yes” box, the amount you can include for state or local sales and excise taxes is limited to the taxes imposed on the first $49,500 of the purchase price of each new motor vehicle. To figure the amount to enter on line 3, you will need to know the rate(s) of tax that apply in the state and locality where you purchased each new motor vehicle. If the state and locality where you purchased a new motor vehicle imposes a fixed rate, multiply the combined state and local rate by the smaller of $49,500 or the purchase price (before taxes) of the new motor vehicle. See Example 1 below. • Self-contained toilet. • Heating and/or air conditioning. • Potable water supply system includ- TIP tails. You may want to take a credit for the foreign tax instead of a deduction. See the instructions for Form 1040, line 47, for de- Interest You Paid Whether your interest expense is treated as investment interest, personal interest, or business interest depends on how and when you used the loan proceeds. See Pub. 535 for details. In general, if you paid interest in 2009 that applies to any period after 2009, you can deduct only amounts that apply for 2009. Lines 10 and 11 Home Mortgage Interest A home mortgage is any loan that is secured by your main home or second home. It includes first and second mortgages, home equity loans, and refinanced mortgages. A home can be a house, condominium, cooperative, mobile home, boat, or similar property. It must provide basic living accommodations including sleeping space, toilet, and cooking facilities. Limit on home mortgage interest. If you Some taxing jurisdictions may provide for a sales tax that is limited to a certain dollar amount per purchase. One example is Manatee County, Florida. Manatee County charges an additional 1⁄2% (.005) discretionary sales tax that is collected on the first $5,000 of a purchase, not to exceed $25. See Example 2 below. Example 1. You purchased a new motor vehicle on April 3, 2009, for $56,500 before taxes. The state where you purchased the vehicle imposes a fixed sales tax rate of 5% and the locality also charges a fixed rate of 1%, for a combined fixed sales tax rate of 6%. The amount of sales tax you can include on line 3 is $2,970 ($49,500 × 6% (.06)). Example 2. You purchased a new motor vehicle in Manatee County, Florida, on April 16, 2009, for $60,000 before taxes. The state of Florida has a fixed sales tax rate of 6%. The amount of sales tax you can include on line 3 is $2,995 ($49,500 × 6% (.06) + $25). In this example, $2,970 represents the 6% Florida sales tax and the $25 is for the Manatee County discretionary sales tax on the first $5,000 of the purchase price. took out any mortgages after October 13, 1987, your deduction may be limited. Any additional amounts borrowed after October 13, 1987, on a line-of-credit mortgage you had on that date are treated as a mortgage taken out after October 13, 1987. If you refinanced a mortgage you had on October 13, 1987, treat the new mortgage as taken out on or before October 13, 1987. But if you refinanced for more than the balance of the old mortgage, treat the excess as a mortgage taken out after October 13, 1987. See Pub. 936 to figure your deduction if either (1) or (2) below applies. If you had more than one home at the same time, the dollar amounts in (1) and (2) apply to the total mortgages on both homes. 1. You took out any mortgages after October 13, 1987, and used the proceeds for purposes other than to buy, build, or improve your home, and all of these mortgages totaled over $100,000 at any time during 2009. The limit is $50,000 if married filing separately. An example of this type of mortgage is a home equity loan used to pay off credit card bills, buy a car, or pay tuition. 2. You took out any mortgages after October 13, 1987, and used the proceeds to buy, build, or improve your home, and these mortgages plus any mortgages you took out on or before October 13, 1987, totaled over $1 million at any time during Line 8 Other Taxes If you had any deductible tax not listed on line 5, 6, or 7, list the type and amount of tax. Enter only one total on line 8. Include on this line: • State and local personal property taxes you paid, if the taxes were based on value alone and were imposed on a yearly basis; and • Income tax you paid to a foreign country or U.S. possession. A-6 2009. The limit is $500,000 if married filing separately. If the total amount of all mortgages is more than the fair market value of the home, additional limits apply. See Pub. 936. If you and at least one other person (other than your spouse if filing jointly) were liable for and paid interest on the mortgage, and the other person received the Form 1098, attach a statement to your return showing the name and address of that person. To the right of line 11, enter “See attached.” person (other than your spouse if filing jointly) were liable for and paid the premiums in connection with the loan, and the premiums were reported on Form 1098 under the other person’s SSN, report your share of the premiums on line 13. Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). Mortgage insurance provided by the Department of Veterans Affairs and the Rural Housing Service is commonly known as a funding fee and guarantee fee respectively. These fees can be deducted fully in 2009 if the mortgage insurance contract was issued in 2009. Contact the mortgage insurance issuer to determine the deductible amount if it is not included in box 4 of Form 1098. Prepaid mortgage insurance premiums. If Line 10 Enter on line 10 mortgage interest and points reported to you on Form 1098 under your social security number (SSN). If this form shows any refund of overpaid interest, do not reduce your deduction by the refund. Instead, see the instructions for Form 1040, line 21. If you and at least one other person (other than your spouse if filing jointly) were liable for and paid interest on the mortgage, and the interest was reported on Form 1098 under the other person’s SSN, report your share of the interest on line 11 (as explained in the line 11 instructions below). If you paid more interest to the recipient than is shown on Form 1098, see Pub. 936 to find out if you can deduct the additional interest. If you can, attach a statement explaining the difference and enter “See attached” to the right of line 10. Line 12 Points Not Reported on Form 1098 Points are shown on your settlement statement. Points you paid only to borrow money are generally deductible over the life of the loan. See Pub. 936 to figure the amount you can deduct. Points paid for other purposes, such as for a lender’s services, are not deductible. Refinancing. Generally, you must deduct points you paid to refinance a mortgage over the life of the loan. This is true even if the new mortgage is secured by your main home. If you used part of the proceeds to improve your main home, you may be able to deduct the part of the points related to the improvement in the year paid. See Pub. 936 for details. If you are claiming the mortgage interest credit (for holders of qualified mortgage credit certificates issued by state or local governmental units or agencies), subtract the amount shown on Form 8396, line 3, from the total deductible interest you paid on your home mortgage. Enter the result on line 10. you paid qualified mortgage insurance premiums that are allocable to periods after the close of the tax year, you must allocate them over the shorter of: • The stated term of the mortgage, or • 84 months, beginning with the month the insurance was obtained. The premiums are treated as paid in the year to which they are allocated. If the mortgage is satisfied before its term, no deduction is allowed for the unamortized balance. See Pub. 936 for details. Exception for certain mortgage insurance. The allocation rules, explained above, do not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or the Rural Housing Service. Limit on amount you can deduct. You TIP If you paid off a mortgage early, deduct any remaining points in the year you paid off the mortgage. Line 11 If you did not receive a Form 1098 from the recipient, report your deductible mortgage interest on line 11. If you bought your home from the recipient, be sure to show that recipient’s name, identifying number, and address on the dotted lines next to line 11. If the recipient is an individual, the identifying number is his or her social security number (SSN). Otherwise, it is the employer identification number. You must also let the recipient know your SSN. If you do not show the required information about the recipient or let the recipient know your SSN, you may have to pay a $50 penalty. Line 13 Qualified Mortgage Insurance Premiums Enter the qualified mortgage insurance premiums you paid under a mortgage insurance contract issued after December 31, 2006, in connection with home acquisition debt that was secured by your first or second home. See Prepaid mortgage insurance premiums on this page if you paid any premiums allocable to any period after the close of the tax year. Box 4 of Form 1098 may show the amount of premiums you paid in 2009. If you and at least one other cannot deduct your mortgage insurance premiums if the amount on Form 1040, line 38, is more than $109,000 ($54,500 if married filing separately). If the amount on Form 1040, line 38, is more than $100,000 ($50,000 if married filing separately), your deduction is limited and you must use the worksheet on page A-8 to figure your deduction. A-7 Qualified Mortgage Insurance Premiums Deduction Worksheet— Line 13 Before you begin: Keep for Your Records See the instructions for line 13 on page A-7 to see if you must use this worksheet to figure your deduction. 1. Enter the total premiums you paid in 2009 for qualified mortgage insurance for a contract issued after December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Enter the amount from Form 1040, line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Enter $100,000 ($50,000 if married filing separately) . . . . . . . . . . . . . . . . . . . . . . 3. 4. Is the amount on line 2 more than the amount on line 3? No. Your deduction is not limited. Enter the amount from line 1 above on Schedule A, line 13. Do not complete the rest of this worksheet. Yes. Subtract line 3 from line 2. If the result is not a multiple of $1,000 ($500 if married filing separately), increase it to the next multiple of $1,000 ($500 if married filing separately). For example, increase $425 to $1,000, increase $2,025 to $3,000; or if married filing separately, increase $425 to $500, increase $2,025 to $2,500, etc. . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Divide line 4 by $10,000 ($5,000 if married filing separately). Enter the result as a decimal. If the result is 1.0 or more, enter 1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. Multiply line 1 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Qualified mortgage insurance premiums deduction. Subtract line 6 from line 1. Enter the result here and on Schedule A, line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 5. 6. 7. . Line 14 Investment Interest Investment interest is interest paid on money you borrowed that is allocable to property held for investment. It does not include any interest allocable to passive activities or to securities that generate tax-exempt income. Complete and attach Form 4952 to figure your deduction. Exception. You do not have to file Form you gave to organizations that work to prevent cruelty to children or animals. Certain whaling captains may be able to deduct expenses paid in 2009 for Native Alaskan subsistence bowhead whale hunting activities. See Pub. 526 for details. To verify an organization’s charitable status, you can: • Check with the organization to which you made the donation. The organization should be able to provide you with verification of its charitable status. • See Pub. 78 for a list of most qualified organizations. You can access Pub. 78 on the IRS website at www.irs.gov under Charities and Non-Profits then Contributors. • Call our Tax Exempt/Government Entities Customer Account Services at 1-877-829-5500. palsy, cystic fibrosis, diabetes, heart disease, hemophilia, mental illness or retardation, multiple sclerosis, muscular dystrophy, tuberculosis, etc. • Federal, state, and local governments if the gifts are solely for public purposes. Contributions You Can Deduct Contributions can be in cash, property, or out-of-pocket expenses you paid to do volunteer work for the kinds of organizations described earlier. If you drove to and from the volunteer work, you can take the actual cost of gas and oil or 14 cents a mile. Add parking and tolls to the amount you claim under either method. But do not deduct any amounts that were repaid to you. Gifts from which you benefit. If you made 4952 if all three of the following apply. 1. Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends. 2. You have no other deductible investment expenses. 3. You have no disallowed investment interest expense from 2008. Alaska Permanent Fund dividends, including those reported on Form 8814, are not investment income. For more details, see Pub. 550. Gifts to Charity You can deduct contributions or gifts you gave to organizations that are religious, charitable, educational, scientific, or literary in purpose. You can also deduct what ples, etc. • Boy Scouts, Boys and Girls Clubs of America, CARE, Girl Scouts, Goodwill Industries, Red Cross, Salvation Army, United Way, etc. • Fraternal orders, if the gifts will be used for the purposes listed earlier on this page. • Veterans’ and certain cultural groups. • Nonprofit schools, hospitals, and organizations whose purpose is to find a cure for, or help people who have, arthritis, asthma, birth defects, cancer, cerebral Examples of Qualified Charitable Organizations • Churches, mosques, synagogues, tem- a gift and received a benefit in return, such as food, entertainment, or merchandise, you can generally only deduct the amount that is more than the value of the benefit. But this rule does not apply to certain membership benefits provided in return for an annual payment of $75 or less or to certain items or benefits of token value. For details, see Pub. 526. Example. You paid $70 to a charitable organization to attend a fund-raising dinner and the value of the dinner was $40. You can deduct only $30. Gifts of $250 or more. You can deduct a gift of $250 or more only if you have a statement from the charitable organization showing the information in (1) and (2) next. A-8 1. The amount of any money contributed and a description (but not value) of any property donated. 2. Whether the organization did or did not give you any goods or services in return for your contribution. If you did receive any goods or services, a description and estimate of the value must be included. If you received only intangible religious benefits (such as admission to a religious ceremony), the organization must state this, but it does not have to describe or value the benefit. In figuring whether a gift is $250 or more, do not combine separate donations. For example, if you gave your church $25 each week for a total of $1,300, treat each $25 payment as a separate gift. If you made donations through payroll deductions, treat each deduction from each paycheck as a separate gift. See Pub. 526 if you made a separate gift of $250 or more through payroll deduction. You must get the statement by the date you file your return or TIP the due date (including extensions) for filing your return, whichever is earlier. Do not attach the statement to your return. Instead, keep it for your records. Limit on the amount you can deduct. See gible personal property (generally, until the entire interest has been transferred). • Gifts to individuals and groups that are run for personal profit. • Gifts to foreign organizations. But you may be able to deduct gifts to certain U.S. organizations that transfer funds to foreign charities and certain Canadian, Israeli, and Mexican charities. See Pub. 526 for details. • Gifts to organizations engaged in certain political activities that are of direct financial interest to your trade or business. See section 170(f)(9). • Gifts to groups whose purpose is to lobby for changes in the laws. • Gifts to civic leagues, social and sports clubs, labor unions, and chambers of commerce. • Value of benefits received in connection with a contribution to a charitable organization. See Pub. 526 for exceptions. • Value of your time or services. • Value of blood given to a blood bank. • The transfer of a future interest in tan- Form 8283. For this purpose, the “amount of your deduction” means your deduction before applying any income limits that could result in a carryover of contributions. If you deduct more than $500 for a contribution of a motor vehicle, boat, or airplane, you must also attach a statement from the charitable organization to your return. The organization may use Form 1098-C to provide the required information. If your total deduction is over $5,000, you may also have to get appraisals of the values of the donated property. This amount is $500 for certain contributions of clothing and household items (see below). See Form 8283 and its instructions for details. Contributions of clothing and household items. A deduction for these contributions will be allowed only if the items are in good used condition or better. However, this rule does not apply to a contribution of any single item for which a deduction of more than $500 is claimed and for which you include a qualified appraisal and Form 8283 with your tax return. Recordkeeping. If you gave property, you Line 16 Gifts by Cash or Check Enter on line 16 the total gifts you made in cash or by check (including out-of-pocket expenses). Recordkeeping. For any contribution Pub. 526 to figure the amount of your deduction if any of the following applies. 1. Your cash contributions or contributions of ordinary income property are more than 30% of the amount on Form 1040, line 38. 2. Your gifts of capital gain property are more than 20% of the amount on Form 1040, line 38. 3. You gave gifts of property that increased in value or gave gifts of the use of property. lodging) while away from home, unless there was no significant element of personal pleasure, recreation, or vacation in the travel. • Political contributions. • Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups. • Cost of raffle, bingo, or lottery tickets. But you may be able to deduct these expenses on line 28. See the instructions on page A-11 for details. • Cost of tuition. But you may be able to deduct this expense on line 21 (see page A-10), or Form 1040, line 34, or take a credit for this expense (see Form 8863). Contributions You Cannot Deduct • Travel expenses (including meals and made in cash, regardless of the amount, you must maintain as a record of the contribution a bank record (such as a canceled check or credit card statement) or a written record from the charity. The written record must include the name of the charity, date, and amount of the contribution. If you made contributions through payroll deduction, see Pub. 526 for information on the records you must keep. Do not attach the record to your tax return. Instead, keep it with your other tax records. should keep a receipt or written statement from the organization you gave the property to, or a reliable written record, that shows the organization’s name and address, the date and location of the gift, and a description of the property. For each gift of property, you should also keep reliable written records that include: • How you figured the property’s value at the time you gave it. If the value was determined by an appraisal, keep a signed copy of the appraisal. • The cost or other basis of the property if you must reduce it by any ordinary income or capital gain that would have resulted if the property had been sold at its fair market value. • How you figured your deduction if you chose to reduce your deduction for gifts of capital gain property. • Any conditions attached to the gift. Line 17 Other Than by Cash or Check Enter your contributions of property. If you gave used items, such as clothing or furniture, deduct their fair market value at the time you gave them. Fair market value is what a willing buyer would pay a willing seller when neither has to buy or sell and both are aware of the conditions of the sale. For more details on determining the value of donated property, see Pub. 561. If the amount of your deduction is more than $500, you must complete and attach If your total deduction for gifts of property is over $500, you gave less than your entire interest in the property, or you made a “qualified conservation contribution,” your records should contain additional information. See Pub. 526 for details. Line 18 Carryover From Prior Year Enter any carryover of contributions that you could not deduct in an earlier year because they exceeded your adjusted gross income limit. See Pub. 526 for details. A-9 Casualty and Theft Losses Line 20 Complete and attach Form 4684 to figure the amount of your loss to enter on line 20. You may be able to deduct part or all of each loss caused by theft, vandalism, fire, storm, or similar causes, and car, boat, and other accidents. You may also be able to deduct money you had in a financial institution but lost because of the insolvency or bankruptcy of the institution. You can deduct personal casualty or theft losses only to the extent that: 1. The amount of each separate casualty or theft loss is more than $500, and 2. The total amount of all losses during the year (reduced by the $500 limit discussed in (1) above) is more than 10% of the amount on Form 1040, line 38. Exception for disaster losses. The 10% of • Travel expenses for employment away from home if that period of employment exceeds 1 year. See Pub. 529 for an exception for certain federal employees. • Travel as a form of education. • Expenses of attending a seminar, convention, or similar meeting unless it is related to your employment. • Club dues. • Expenses of adopting a child. But you may be able to take a credit for adoption expenses. See Form 8839 for details. • Fines and penalties. • Expenses of producing tax-exempt income. Line 21 Unreimbursed Employee Expenses Enter the total ordinary and necessary job expenses you paid for which you were not reimbursed. (Amounts your employer included in box 1 of your Form W-2 are not considered reimbursements.) An ordinary expense is one that is common and accepted in your field of trade, business, or profession. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary. But you must fill in and attach Form 2106 if either (1) or (2) below applies. 1. You claim any travel, transportation, meal, or entertainment expenses for your job. 2. Your employer paid you for any of your job expenses that you would otherwise report on line 21. • Protective clothing required in your work, such as hard hats, safety shoes, and glasses. • Physical examinations required by your employer. • Dues to professional organizations and chambers of commerce. • Subscriptions to professional journals. • Fees to employment agencies and other costs to look for a new job in your present occupation, even if you do not get a new job. • Certain business use of part of your home. For details, including limits that apply, use TeleTax topic 509 (see page 93 of the Form 1040 instructions) or see Pub. 587. • Certain educational expenses. For details, use TeleTax topic 513 (see page 93 of the Form 1040 instructions) or see Pub. 970. Reduce your educational expenses by any tuition and fees deduction you claimed on Form 1040, line 34. TIP You may be able to take a credit for your educational expenses instead of a deduction. See Form 8863 for details. AGI limitation does not apply to a casualty loss that occurred in an area determined by the President of the United States to warrant federal disaster assistance. For information on disaster losses, see Pub. 547. Special rules apply if you had both gains and losses from casualties or thefts. See Form 4684 and its instructions for details. Use Schedule A, line 23, to deduct the costs of proving that you had a property loss. Examples of these costs are appraisal fees and photographs used to establish the amount of your loss. Line 22 Tax Preparation Fees Enter the fees you paid for preparation of your tax return, including fees paid for filing your return electronically. If you paid your tax by credit or debit card, include the convenience fee you were charged on line 23 instead of this line. Line 23 Other Expenses Enter the total amount you paid to produce or collect taxable income and manage or protect property held for earning income. But do not include any personal expenses. List the type and amount of each expense on the dotted lines next to line 23. If you need more space, attach a statement showing the type and amount of each expense. Enter one total on line 23. Examples of expenses to include on line 23 are: • Certain legal and accounting fees. • Clerical help and office rent. • Custodial (for example, trust account) fees. • Your share of the investment expenses of a regulated investment company. • Certain losses on nonfederally insured deposits in an insolvent or bankrupt financial institution. For details, including limits that apply, see Pub. 529. • Casualty and theft losses of property used in performing services as an employee Job Expenses and Certain Miscellaneous Deductions You can deduct only the part of these expenses that exceeds 2% of the amount on Form 1040, line 38. Pub. 529 discusses the types of expenses that can and cannot be deducted. If you used your own vehicle, are using the standard mileage TIP rate, and (2) above does not apply, you may be able to file Form 2106-EZ instead. If you do not have to file Form 2106 or 2106-EZ, list the type and amount of each expense on the dotted line next to line 21. If you need more space, attach a statement showing the type and amount of each expense. Enter the total of all these expenses on line 21. that do not produce taxable income. • Lost or misplaced cash or property. • Expenses for meals during regular or extra work hours. • The cost of entertaining friends. • Commuting expenses. See Pub. 529 for the definition of commuting. Examples of Expenses You Cannot Deduct • Political contributions. • Legal expenses for personal matters Do not include on line 21 any educator expenses you deducted on Form 1040, line 23. Examples of other expenses to include on line 21 are: • Safety equipment, small tools, and supplies needed for your job. • Uniforms required by your employer that are not suitable for ordinary wear. A-10 from Form 4684, lines 36 and 42b, or Form 4797, line 18a. • Deduction for repayment of amounts under a claim of right if $3,000 or less. • Convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. The deduction is claimed for the year in which the fee was charged to your card. amount of each expense. Enter one total on line 28. For more details, see Pub. 529. Other Miscellaneous Deductions Line 28 Only the expenses listed next can be deducted on this line. List the type and amount of each expense on the dotted lines next to line 28. If you need more space, attach a statement showing the type and • Gambling losses, but only to the extent of gambling winnings reported on Form 1040, line 21. • Casualty and theft losses of income-producing property from Form 4684, lines 36 and 42b, or Form 4797, line 18a. • Loss from other activities from Schedule K-1 (Form 1065-B), box 2. • Federal estate tax on income in respect of a decedent. • Amortizable bond premium on bonds acquired before October 23, 1986. • Deduction for repayment of amounts under a claim of right if over $3,000. See Pub. 525 for details. • Certain unrecovered investment in a pension. • Impairment-related work expenses of a disabled person. Total Itemized Deductions Line 29 Use the worksheet below to figure the amount to enter on line 29 if the amount on Form 1040, line 38, is over $166,800 ($83,400 if married filing separately). Line 30 If you elect to itemize for state tax or other purposes even though your itemized deductions are less than your standard deduction, check the box on line 30. Itemized Deductions Worksheet—Line 29 Keep for Your Records 1. 2. 1. Enter the total of the amounts from Schedule A, lines 4, 9, 15, 19, 20, 27, and 28 . . . . . . . . . . . . . . 2. Enter the total of the amounts from Schedule A, lines 4, 14, and 20, plus any gambling and casualty or theft losses included on line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Be sure your total gambling and casualty or theft losses are clearly identified on the dotted lines next to line 28. 3. Is the amount on line 2 less than the amount on line 1? STOP No. Your deduction is not limited. Enter the amount from line 1 above on Schedule A, line 29. Yes. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Multiply line 3 by 80% (.80) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Enter the amount from Form 1040, line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Enter $166,800 ($83,400) if married filing separately) . . . . . . . . . . . . . . . . . . . 6. 7. Is the amount on line 6 less than the amount on line 5? STOP No. Your deduction is not limited. Enter the amount from line 1 above on Schedule A, line 29. Yes. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 8. Multiply line 7 by 3% (.03) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. Enter the smaller of line 4 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Divide line 9 by 1.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. Subtract line 10 from line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. Total itemized deductions. Subtract line 11 from line 1. Enter the result here and on Schedule A, line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . 9. . 10. . 11. . 12. A-11 2009 Optional State and Certain Local Sales Tax Tables Income At least But less than 1 2 Exemptions 3 4 5 Over 5 1 2 Exemptions 3 4 5 Over 5 1 2 Exemptions 3 4 5 Over 5 1 2 Exemptions 3 1, 2 Exemptions 5 Over 5 1 2 3 4 5 Over 5 4 Alabama 203 310 365 413 458 500 540 578 615 239 362 425 479 530 576 621 663 704 264 397 465 524 578 627 675 720 763 4.0000% Arizona 282 424 496 558 615 667 717 764 809 298 446 521 586 645 700 752 801 848 319 477 557 626 688 746 800 852 901 219 364 443 514 579 641 702 759 815 237 393 478 553 623 688 752 812 871 951 1064 1167 1273 1372 249 412 499 577 650 718 783 846 906 988 1105 1210 1319 1420 5.6000% Arkansas 258 425 516 596 670 739 807 871 932 1016 1135 1242 1353 1456 265 436 529 610 686 757 825 890 953 1039 1159 1268 1380 1485 274 451 546 630 287 475 574 662 319 526 635 731 340 559 674 775 6.0000% California 356 584 704 809 368 604 727 835 386 631 760 872 285 482 589 686 309 519 633 736 8.0034% Colorado 334 559 681 790 343 573 697 808 355 591 719 833 939 1038 1134 1226 1314 1434 1604 1758 1916 2064 105 171 206 239 269 297 324 351 376 411 461 506 554 598 842 114 184 223 257 288 318 347 375 401 438 490 537 586 631 882 119 193 233 268 301 331 361 390 417 454 508 556 606 653 908 2.9000% 123 200 240 276 310 341 372 401 429 467 521 570 621 668 927 127 205 246 283 317 349 380 410 438 477 532 582 633 681 943 131 212 254 292 327 360 392 422 451 491 547 597 650 698 963 $0 $20,000 20,000 30,000 30,000 40,000 40,000 50,000 50,000 60,000 60,000 70,000 70,000 80,000 80,000 90,000 90,000 100,000 100,000 120,000 140,000 160,000 180,000 120,000 140,000 160,000 180,000 200,000 323 542 660 767 708 742 818 867 904 934 975 776 831 865 891 911 781 816 899 952 992 1025 1069 862 921 958 986 1008 851 887 976 1034 1077 1111 1159 945 1009 1049 1078 1102 917 954 1049 1110 1156 1193 1243 1025 1092 1135 1166 1191 982 1017 1118 1183 1231 1270 1324 1102 1174 1218 1251 1278 1069 1192 1303 1418 1524 1103 1222 1327 1434 1532 1211 1339 1454 1569 1675 1280 1415 1535 1656 1767 1332 1472 1596 1721 1835 1374 1518 1645 1774 1891 1431 1580 1712 1846 1967 1208 1358 1496 1638 1771 1284 1441 1584 1731 1869 1332 1493 1639 1790 1931 1367 1531 1680 1834 1977 1395 1562 1713 1869 2014 666 759 822 870 910 967 891 737 836 903 955 998 1059 999 801 906 977 1032 1077 1141 1098 868 978 1053 1110 1158 1225 1200 930 1045 1122 1183 1232 1302 1295 200,000 or more 1271 1407 1499 1571 1630 1713 1816 1910 1970 2014 2050 2099 2039 2221 2337 2424 2495 2591 2504 2624 2701 2757 2803 2865 Income $0 $20,000 20,000 30,000 30,000 40,000 40,000 50,000 50,000 60,000 60,000 70,000 70,000 80,000 80,000 90,000 90,000 100,000 100,000 120,000 140,000 160,000 180,000 120,000 140,000 160,000 180,000 200,000 Connecticut 216 369 452 526 593 656 717 774 829 902 1005 1096 1189 1274 229 392 479 557 628 694 758 818 875 952 1060 1156 1254 1343 238 406 496 576 649 717 783 845 904 983 1094 1193 1293 1385 6.0000% District of Columbia1 5.8130% Florida 244 416 508 590 665 735 802 865 925 1006 1119 1220 1322 1416 249 424 518 601 677 748 816 880 942 1024 1139 1241 1345 1440 256 435 531 616 694 766 836 901 964 177 303 373 436 495 550 604 656 706 188 320 393 458 519 577 633 686 738 194 330 405 472 534 593 651 705 758 199 337 414 482 546 605 664 719 773 203 343 421 490 554 615 674 730 784 208 352 430 501 566 628 688 745 800 228 385 471 549 621 689 755 819 880 249 419 512 594 671 744 814 881 946 263 440 537 623 6.0000% Georgia 272 456 556 644 280 469 571 662 291 486 591 685 147 240 290 335 377 416 454 491 527 575 645 708 774 835 160 260 313 361 405 447 487 525 563 614 686 752 820 883 169 272 328 377 423 466 507 547 586 638 712 779 849 914 4.0000% Hawaii 175 281 339 389 436 480 523 563 602 656 731 800 870 936 179 289 347 399 447 492 535 576 616 670 747 816 888 955 186 299 359 412 461 507 552 594 635 245 388 462 526 583 637 687 735 780 280 440 523 594 658 718 774 826 876 302 474 562 639 707 771 830 886 939 1010 1107 1193 1280 1358 4.0000% 319 500 593 673 333 521 618 700 353 551 652 739 703 727 746 771 778 804 824 852 851 878 901 931 920 950 973 1005 987 1018 1043 1077 1078 1207 1325 1445 1557 1112 1244 1363 1486 1601 1138 1273 1394 1519 1636 1175 1312 1437 1565 1683 745 775 817 811 844 889 873 908 957 932 969 1020 987 1026 1080 1061 1162 1252 1342 1424 1102 1208 1300 1393 1478 1160 1270 1367 1464 1552 200,000 or more 1048 774 808 830 845 858 874 964 1034 1166 871 908 931 948 962 980 1083 1159 1270 959 999 1023 1042 1056 1075 1191 1273 1376 1049 1092 1118 1137 1153 1174 1303 1390 1473 1133 1178 1206 1227 1243 1265 1408 1499 1718 1807 1862 1902 1933 1976 1590 1647 1681 1707 1727 1754 1982 2096 690 840 943 768 923 1035 839 997 1116 912 1071 1197 979 1139 1272 2168 2222 2265 2325 1174 1232 1269 1296 1318 1349 1487 1652 1759 1841 1907 1999 Income $0 $20,000 20,000 30,000 30,000 40,000 40,000 50,000 50,000 60,000 60,000 70,000 70,000 80,000 80,000 90,000 90,000 100,000 100,000 120,000 140,000 160,000 180,000 120,000 140,000 160,000 180,000 200,000 Idaho 300 466 553 630 353 544 643 730 388 596 703 797 6.0000% Illinois 415 636 750 849 939 1022 1101 1176 1248 1345 1481 1603 1727 1842 437 670 788 892 985 1072 1155 1232 1307 1407 1548 1673 1802 1920 469 716 842 951 1050 1142 1229 1311 1389 233 376 453 522 586 647 706 763 817 259 416 500 574 643 708 771 831 889 276 442 530 607 680 747 813 875 935 6.2500% Indiana 289 461 552 633 707 777 844 908 970 1054 1173 1280 1391 1495 299 477 570 653 314 498 595 681 280 454 547 628 307 496 597 685 325 523 628 720 7.0000% Iowa 338 544 652 747 348 560 671 768 363 582 697 798 255 433 528 612 279 471 574 665 294 495 603 697 6.0000% Kansas 305 513 624 722 313 527 641 742 326 547 665 768 285 453 540 616 332 525 625 712 364 574 682 775 5.3000% 389 612 726 824 410 643 762 865 438 686 812 921 1020 1110 1195 1275 1351 1451 1590 1712 1834 1946 700 809 882 766 883 961 830 954 1037 890 1021 1109 949 1086 1178 1028 1140 1242 1346 1444 1173 1296 1406 1520 1626 1270 1400 1517 1637 1748 729 760 801 833 869 904 935 972 998 1037 1084 1205 1314 1427 1533 1125 1249 1361 1477 1584 703 765 805 834 857 890 773 840 883 914 940 975 840 912 958 992 1019 1056 904 980 1028 1064 1093 1133 965 1045 1096 1134 1164 1206 1046 1161 1264 1368 1465 1132 1254 1364 1475 1577 1187 1313 1427 1542 1647 1227 1357 1474 1592 1700 1260 1393 1512 1632 1743 1304 1441 1563 1687 1801 690 748 784 812 834 863 762 825 865 895 919 951 831 899 943 975 1001 1036 896 969 1015 1050 1077 1115 959 1036 1085 1122 1151 1191 1042 1159 1264 1370 1467 1126 1251 1363 1475 1579 1179 1309 1425 1542 1650 1218 1352 1471 1592 1702 1249 1386 1508 1632 1745 1292 1433 1559 1686 1802 685 790 860 913 958 749 862 937 995 1043 810 930 1011 1073 1124 867 994 1079 1145 1199 921 1056 1145 1214 1271 994 1095 1184 1274 1357 1137 1249 1349 1449 1541 1232 1353 1459 1566 1664 1306 1432 1544 1656 1758 1366 1498 1614 1731 1837 200,000 or more 1494 892 968 1017 1641 999 1080 1133 1772 1096 1183 1238 1906 1197 1288 1347 2030 1292 1387 1449 1977 2196 2343 2457 2552 2684 1816 1930 2003 2059 2105 2167 1972 2112 2201 2268 2321 2394 1971 2116 2207 2275 2329 2403 1781 2010 2163 2280 2377 2513 Income $0 $20,000 20,000 30,000 30,000 40,000 40,000 50,000 50,000 60,000 60,000 70,000 70,000 80,000 80,000 90,000 90,000 100,000 100,000 120,000 140,000 160,000 180,000 Kentucky 220 363 442 512 577 639 699 757 813 242 399 483 559 629 695 759 820 879 257 421 510 588 661 730 796 860 921 6.0000% Louisiana 268 438 529 611 686 756 825 890 953 1038 1159 1268 1381 1486 276 451 545 629 288 470 567 653 159 271 333 388 439 487 533 577 620 172 292 358 416 471 521 570 617 662 180 306 374 435 491 543 594 642 689 4.0000% Maine 186 316 386 448 506 559 611 661 708 191 324 395 459 517 572 625 676 724 198 334 408 473 534 590 644 696 745 149 252 309 361 410 456 502 545 588 159 268 328 382 433 481 528 574 618 166 278 340 396 448 497 545 591 636 5.0000% Maryland 170 285 348 405 458 508 557 604 650 174 291 355 413 467 518 567 615 661 179 299 365 423 478 530 580 629 675 215 349 421 487 548 606 662 717 770 236 382 460 529 594 656 715 773 828 250 402 484 557 624 688 749 808 866 6.0000% Massachusetts1 261 418 502 577 646 711 775 835 894 973 1087 1190 1297 1398 269 431 517 594 664 731 795 857 916 997 1112 1217 1326 1428 280 448 537 616 689 757 823 886 947 1030 1147 1254 1365 1468 166 269 326 378 426 472 517 560 602 178 288 347 401 451 498 545 589 632 186 299 361 416 467 515 562 607 651 5.5240% 191 308 370 426 479 528 576 621 666 196 315 378 435 488 538 586 632 677 202 324 389 447 501 551 601 647 693 706 733 778 807 848 879 914 947 978 1013 1065 1188 1300 1415 1521 1102 1229 1343 1460 1569 120,000 889 959 1004 140,000 997 1074 1122 160,000 1097 1178 1229 180,000 1199 1285 1340 200,000 1295 1385 1443 200,000 or more 1824 1935 2005 677 723 751 772 789 812 759 808 839 862 881 906 832 885 919 944 963 990 907 964 1000 1027 1048 1077 977 1037 1075 1103 1126 1156 646 678 697 712 723 739 843 904 943 730 763 785 800 813 830 947 1013 1055 806 842 864 881 894 912 1043 1112 1157 886 924 947 965 979 998 1143 1216 1262 961 1000 1025 1043 1058 1078 1238 1313 1361 659 691 711 726 738 755 742 775 796 812 825 843 817 852 874 891 904 923 896 932 955 973 987 1006 971 1008 1031 1049 1063 1083 2059 2102 2161 1351 1427 1475 1511 1539 1578 1378 1425 1454 1476 1494 1518 1769 1856 1912 1955 1990 2038 1384 1425 1451 1471 1487 1509 Income $0 $20,000 20,000 30,000 30,000 40,000 40,000 50,000 50,000 60,000 60,000 70,000 70,000 80,000 80,000 90,000 90,000 100,000 100,000 120,000 140,000 160,000 180,000 Michigan 215 351 424 490 552 610 667 721 774 236 382 461 532 597 659 719 776 831 249 402 485 558 626 690 752 811 868 6.0000% Minnesota1 258 417 502 578 647 713 776 837 895 975 1087 1190 1295 1394 266 429 516 593 665 732 796 858 918 998 1113 1217 1324 1424 277 446 535 615 688 757 823 886 948 1030 1147 1253 1362 1464 224 387 476 555 628 696 762 825 885 966 1080 1182 1286 1382 239 411 505 589 666 738 807 873 936 1021 1141 1248 1357 1457 248 427 524 610 689 764 835 903 968 1056 1179 1289 1401 1504 6.6890% Mississippi 255 438 537 625 261 447 548 638 268 459 562 654 393 628 750 857 954 1043 1128 1208 1284 1385 1526 1651 1777 1892 7.0000% Missouri 161 265 320 370 417 461 503 544 584 181 296 357 411 462 509 555 599 641 194 316 380 438 491 541 589 634 679 4.2250% Nebraska 204 331 398 458 513 564 614 661 707 212 343 413 474 531 584 635 683 730 223 360 432 496 555 610 663 713 762 233 395 483 560 632 698 761 821 879 252 426 520 603 679 750 817 881 942 263 446 543 629 5.5000% 272 460 560 649 279 471 574 665 289 487 593 686 451 489 519 543 576 717 776 821 858 909 855 924 976 1020 1079 975 1052 1111 1160 1227 1083 1183 1278 1366 1451 1563 1719 1857 1996 2123 1168 1274 1376 1470 1561 1680 1846 1993 2140 2274 1233 1345 1451 1550 1644 1770 1943 2096 2250 2390 1286 1402 1512 1615 1713 1843 2022 2181 2340 2485 1360 1482 1598 1705 1808 1944 2132 2298 2465 2616 707 720 739 783 798 818 856 872 894 925 942 966 991 1010 1035 1081 1206 1319 1433 1538 1101 1228 1342 1458 1565 1128 1258 1374 1493 1602 708 730 748 772 782 806 825 851 852 878 899 927 918 946 968 998 982 1011 1035 1067 1067 1186 1291 1398 1496 1099 1220 1329 1438 1539 1124 1248 1359 1471 1573 1158 1286 1399 1514 1619 120,000 846 907 946 140,000 948 1014 1056 160,000 1042 1112 1156 180,000 1139 1213 1260 200,000 1230 1308 1357 200,000 or more 1734 1827 1887 638 699 739 769 793 827 956 1024 714 781 824 856 883 919 1064 1139 784 855 901 935 964 1002 1160 1241 856 931 980 1017 1047 1088 1257 1344 924 1003 1054 1092 1124 1167 1347 1439 1932 1968 2017 1887 1985 2046 2090 2126 2173 2483 2772 2961 3105 3223 3387 1296 1393 1455 1503 1542 1595 1812 1931 2005 2060 2104 2163 (Continued on next page) A-12 2009 Optional State and Certain Local Sales Tax Tables (Continued) Income At least But less than 1 2 Exemptions 3 4 5 Over 5 1 2 Exemptions 3 4 Exemptions 5 Over 5 1 2 3 4 5 Over 5 1 2 Exemptions 3 4 5 Over 5 1 2 Exemptions 3 4 1 4 5 Over 5 Nevada1, 3 239 389 470 543 611 675 737 797 855 934 1048 1151 1258 1359 262 423 510 588 660 728 794 857 918 1001 1120 1227 1339 1443 276 445 536 617 692 762 830 895 958 1044 1166 1276 1390 1497 6.6764% New Jersey 287 462 555 638 296 475 571 656 307 493 592 679 244 418 514 600 260 444 544 634 271 460 563 656 7.0000% New Mexico 278 472 577 671 284 481 588 684 292 494 603 701 218 372 455 528 595 658 718 774 828 901 1003 1093 1185 1270 236 402 491 569 641 708 772 832 890 968 1076 1172 1270 1360 248 421 513 595 670 739 806 869 929 1009 1122 1222 1323 1416 5.0000% New York 256 435 530 614 691 763 831 896 958 263 446 543 629 273 461 561 650 145 247 303 353 399 443 486 526 565 618 693 760 829 894 154 261 320 372 421 466 510 552 593 647 725 794 866 932 159 270 330 384 434 480 526 568 610 666 745 816 888 956 4.0000% North Carolina 163 276 338 393 443 491 537 580 622 679 759 831 905 973 166 281 344 399 451 499 546 590 632 171 288 352 409 461 510 558 603 646 206 340 412 476 534 589 641 690 738 225 371 448 516 579 637 693 746 796 237 390 471 542 607 668 726 781 833 904 1002 1090 1179 1261 4.8973% 253 415 501 576 645 709 770 828 883 957 1061 1153 1246 1332 263 430 519 597 668 734 797 856 913 989 1096 1190 1286 1374 $0 $20,000 20,000 30,000 30,000 40,000 40,000 50,000 50,000 60,000 60,000 70,000 70,000 80,000 80,000 90,000 90,000 100,000 100,000 120,000 140,000 160,000 180,000 120,000 140,000 160,000 180,000 200,000 246 404 487 561 628 691 751 807 861 933 1035 1125 1216 1300 715 734 760 787 808 836 857 879 909 924 947 978 988 1013 1045 1076 1200 1312 1429 1537 1101 1227 1342 1460 1570 1136 1265 1382 1502 1614 679 717 741 759 773 791 754 796 821 840 856 876 827 872 899 919 936 958 897 944 973 994 1012 1035 964 1013 1044 1067 1085 1110 1055 1183 1300 1419 1530 1107 1241 1361 1484 1598 1140 1276 1399 1525 1641 1165 1303 1427 1555 1673 1184 1324 1450 1579 1698 1211 1353 1481 1611 1732 708 731 781 807 851 879 917 947 981 1012 1065 1183 1288 1394 1491 1099 1220 1327 1436 1536 1040 1156 1258 1362 1458 690 704 801 864 771 787 890 959 844 861 970 1044 918 936 1051 1130 987 1006 1125 1209 200,000 or more 1915 2017 2082 2131 2170 2224 2125 2210 2263 2302 2333 2376 1708 1824 1897 1951 1994 2052 1238 1286 1315 1337 1355 1378 1517 1623 1690 1739 1779 1833 Income $0 $20,000 20,000 30,000 30,000 40,000 40,000 50,000 50,000 60,000 60,000 70,000 70,000 80,000 80,000 90,000 90,000 100,000 100,000 120,000 140,000 160,000 180,000 North Dakota 5.0000% Ohio 168 276 335 389 439 486 533 577 621 191 311 376 434 489 540 590 638 684 206 334 403 464 521 575 628 677 726 217 351 423 487 546 602 656 708 758 226 365 440 506 567 624 680 732 784 239 385 463 531 595 654 712 767 820 225 376 459 532 600 664 725 784 840 916 1024 1121 1221 1313 242 404 491 569 641 708 773 834 894 974 1087 1188 1292 1389 253 422 512 592 667 736 803 866 927 1010 1126 1230 1337 1435 5.5000% Oklahoma 261 434 527 610 686 757 825 890 952 1036 1155 1261 1370 1470 268 445 539 623 701 773 843 909 972 1058 1178 1286 1396 1498 277 459 556 642 721 795 867 934 999 223 356 427 490 548 602 655 705 754 259 411 491 561 626 686 744 799 853 282 447 533 608 677 741 803 862 918 994 1102 1199 1298 1391 4.5000% Pennsylvania 300 474 565 644 315 497 592 674 336 529 628 715 203 340 414 481 543 601 657 711 763 218 362 440 510 575 636 695 751 805 227 376 457 529 595 658 718 775 831 6.0000% Rhode Island 239 395 479 553 622 687 749 808 865 942 1051 1149 1249 1342 246 406 492 568 639 704 768 828 886 239 387 466 535 599 659 716 770 823 258 415 499 573 641 704 764 821 876 269 433 520 596 666 731 794 853 909 7.0000% 285 457 548 628 701 768 834 895 954 1032 1143 1241 1341 1433 294 471 564 646 721 791 857 920 980 1061 1173 1274 1376 1470 234 386 469 542 610 674 735 794 850 926 1033 1130 1229 1321 278 446 536 614 685 752 816 876 934 1011 1120 1217 1315 1406 717 749 795 784 819 868 849 886 938 910 950 1005 969 1010 1068 1048 1160 1260 1363 1459 1092 1207 1311 1417 1515 120,000 681 748 792 826 853 892 140,000 767 839 887 923 953 994 160,000 846 923 973 1011 1043 1086 180,000 929 1010 1062 1103 1136 1182 200,000 1008 1091 1146 1189 1224 1272 1086 820 924 1209 913 1026 1319 999 1119 1432 1087 1214 1536 1170 1303 1154 834 878 905 1274 934 981 1011 1382 1024 1075 1106 1492 1117 1171 1204 1594 1203 1259 1295 964 893 950 985 1075 991 1053 1091 1174 1079 1145 1186 1276 1168 1239 1283 1370 1251 1325 1372 200,000 or more 1448 1547 1613 1664 1705 1763 1808 1902 1961 2004 2039 2087 1627 1786 1893 1976 2044 2140 1668 1736 1779 1811 1837 1871 1686 1780 1838 1881 1915 1961 Income $0 $20,000 20,000 30,000 30,000 40,000 40,000 50,000 50,000 60,000 60,000 70,000 70,000 80,000 80,000 90,000 90,000 100,000 100,000 120,000 140,000 160,000 180,000 120,000 140,000 160,000 180,000 200,000 South Carolina 244 408 497 575 647 713 778 839 897 976 1086 1185 1285 1378 263 438 532 615 691 762 830 895 956 1039 1155 1259 1365 1462 274 457 554 640 6.0000% South Dakota 4.0000% Tennessee 283 470 570 658 290 481 583 673 299 496 601 693 227 363 433 495 551 602 651 697 741 261 415 494 563 626 683 738 789 838 283 449 534 608 675 737 795 850 902 971 1067 1151 1236 1313 300 475 565 642 713 777 839 896 950 1023 1123 1211 1300 1381 314 496 590 671 333 526 624 710 341 541 646 739 393 619 737 841 427 671 798 909 1010 1103 1193 1277 1358 1467 1619 1755 1893 2020 7.0000% Texas 454 475 505 711 743 789 844 882 934 960 1002 1061 1066 1164 1258 1346 1430 1543 1701 1842 1985 2117 1112 1214 1311 1402 1489 1606 1768 1914 2061 2197 1177 1283 1384 1480 1571 1692 1862 2013 2167 2307 259 438 534 620 284 479 584 676 300 505 615 712 6.2500% Utah 312 525 638 738 322 541 657 760 335 562 683 789 226 369 446 513 575 633 689 742 793 256 416 500 575 643 707 768 825 881 276 446 536 615 687 754 819 880 938 4.7000% 291 469 563 645 303 488 585 670 319 514 616 705 719 739 756 778 792 814 832 856 863 887 906 932 929 955 975 1003 993 1020 1042 1071 1079 1199 1306 1415 1515 1108 1231 1340 1451 1554 1131 1256 1367 1481 1585 744 786 825 936 811 857 905 1024 874 924 981 1109 934 986 1054 1188 990 1046 1124 1265 1065 1169 1260 1352 1436 1124 1233 1329 1425 1512 1218 1350 1469 1590 1703 1368 1512 1641 1772 1894 698 761 800 830 854 886 771 839 882 915 941 976 841 915 961 996 1024 1063 907 985 1035 1073 1103 1144 970 1054 1107 1146 1178 1221 1055 1173 1279 1386 1485 1145 1272 1385 1500 1605 1202 1334 1452 1572 1681 1244 1381 1502 1626 1738 1278 1418 1543 1669 1784 721 748 786 791 820 861 858 889 933 921 954 1001 982 1017 1066 1063 1176 1278 1381 1476 1100 1217 1322 1428 1525 1153 1274 1382 1492 1593 1162 800 903 1290 881 993 1404 953 1072 1520 1025 1153 1626 1092 1226 1325 862 955 1016 1469 958 1060 1126 1598 1045 1153 1224 1728 1133 1249 1324 1847 1215 1337 1416 200,000 or more 1863 1972 2039 2089 2128 2182 1432 1600 1709 1793 1862 1957 2302 2536 2691 2810 2908 3043 1997 2151 2250 2323 2382 2462 1651 1802 1901 1976 2037 2122 Income $0 $20,000 20,000 30,000 30,000 40,000 40,000 50,000 50,000 60,000 60,000 70,000 70,000 80,000 80,000 90,000 90,000 100,000 100,000 120,000 140,000 160,000 180,000 120,000 140,000 160,000 180,000 200,000 Vermont 140 241 296 346 392 436 478 518 557 610 684 751 820 884 147 251 308 360 408 453 497 538 578 632 709 778 849 915 151 257 316 369 417 463 508 550 591 646 724 795 867 934 6.0000% Virginia 154 262 322 375 424 471 516 559 600 656 735 807 880 947 156 266 326 380 430 477 523 566 608 664 744 816 890 958 159 271 332 386 437 485 531 575 618 675 756 829 903 972 161 256 307 353 395 434 473 510 545 594 663 726 791 852 182 288 344 394 440 483 525 564 602 654 728 795 864 928 196 309 369 421 469 515 558 600 640 4.0000% Washington 207 325 387 442 492 539 584 627 668 215 338 402 458 510 558 605 649 691 227 355 422 481 259 440 539 628 282 478 585 679 297 502 613 712 6.5000% West Virginia 308 520 634 736 317 534 651 755 329 554 674 782 283 465 562 648 318 520 627 722 342 556 670 770 6.0000% Wisconsin 373 606 728 835 393 636 764 876 209 356 435 505 569 629 686 741 793 227 385 469 544 613 677 738 796 851 238 403 491 569 641 707 771 831 888 5.0000% 246 416 507 587 661 729 795 856 916 995 1105 1203 1303 1394 253 427 520 602 677 747 814 877 937 1018 1131 1231 1332 1425 262 441 537 622 699 771 840 905 967 1050 1166 1269 1373 1468 359 583 702 806 535 710 767 803 830 851 880 727 809 861 901 934 978 585 788 849 888 917 941 973 801 890 947 990 1025 1073 633 862 929 971 1002 1027 1062 873 967 1028 1075 1112 1164 679 933 1004 1049 1082 1109 1146 941 1041 1106 1155 1195 1250 723 1002 1077 1125 1160 1188 1227 1006 1111 1180 1232 1274 1332 1175 1314 1439 1566 1685 1226 1369 1498 1630 1752 1264 1411 1543 1678 1802 1294 1444 1578 1716 1842 1336 1489 1627 1768 1897 1094 1217 1328 1442 1547 1206 1340 1459 1581 1694 1279 1419 1544 1672 1789 1335 1479 1608 1740 1861 1380 1528 1661 1796 1920 694 724 748 782 1095 770 803 829 865 1226 840 874 902 940 1344 911 947 977 1018 1466 978 1016 1047 1089 1578 1442 862 925 965 1596 959 1029 1073 1733 1046 1121 1168 1872 1134 1215 1265 2000 1215 1300 1354 200,000 or more 1225 1265 1289 1307 1321 1339 1188 1280 1340 1386 1423 1475 2180 2315 2400 2464 2515 2584 2106 2289 2408 2498 2571 2672 1635 1746 1815 1866 1907 1962 Income $0 $20,000 20,000 30,000 30,000 40,000 40,000 50,000 50,000 60,000 60,000 70,000 70,000 80,000 80,000 90,000 90,000 100,000 100,000 120,000 140,000 160,000 180,000 120,000 140,000 160,000 180,000 200,000 Wyoming 154 264 324 378 428 475 521 564 606 167 285 349 407 460 510 558 604 648 175 298 365 425 480 532 581 629 675 4.0000% 181 308 377 438 495 548 599 647 694 186 316 386 449 506 561 613 662 710 193 327 399 463 523 578 632 682 731 1 Note. Alaska does not have a state sales tax. Alaska residents should follow the instructions on the next page to determine their local sales tax amount. The rates for California, the District of Columbia, Massachusetts, Minnesota, Nevada, and North Carolina increased during 2009, so the rates given are averaged over the year. 2 The California table includes the 1% uniform local sales tax rate in addition to the 7.0034% state sales tax rate. 3 The Nevada table includes the 2.25% uniform local sales tax rate in addition to the 4.4264% state sales tax rate. 4 Residents of Salem County should deduct only half of the amount in the state table. 200,000 or more 663 708 736 757 774 797 743 792 823 846 865 890 816 869 902 926 946 973 890 946 982 1008 1030 1058 959 1019 1056 1084 1107 1137 1328 1404 1452 1487 1516 1554 A-13 Which Optional Local Sales Tax Table Should I Use? IF you live in the state of... Alaska Arizona Arkansas California Colorado AND you live in... Any locality Mesa, Phoenix, or Tucson Chandler, Gilbert, Glendale, Peoria, Scottsdale, Tempe, Yuma, or any other locality Any locality Los Angeles County Arvada, Aurora, City of Boulder, Fort Collins, Greeley, Longmont, Thornton, or Westminster Adams County, Arapahoe County, Boulder County, Centennial, Colorado Springs, Denver City/Denver County, El Paso County, Jefferson County, Lakewood, Larimer County, City of Pueblo, Pueblo County, or any other locality Georgia Illinois Louisiana Missouri New York Any locality Any locality Any locality Any locality New York City, or one of the following counties: Albany, Allegany, Cattaraugus, Cayuga, Chemung, Clinton, Cortland, Erie, Essex, Franklin, Fulton, Genesee, Herkimer, Jefferson, Lewis, Livingston, Monroe, Montgomery, Nassau, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Rockland, St. Lawrence, Saratoga, Schenectady, Schoharie, Seneca, Steuben, Suffolk, Sullivan, Tompkins, Ulster, Warren, Washington, Westchester, Wyoming, or Yates Any other locality Any locality Cherokee, Chesterfield, Darlington, Dillon, Horry, Jasper, Lee, Lexington, or Myrtle Beach Any other locality Any locality Any locality Any locality THEN use Local Table... C A B C A B A B A C C A D A B C C B B North Carolina South Carolina Tennessee Utah Virginia 2009 Optional Local Sales Tax Tables for Certain Local Jurisdictions (Based on a local sales tax rate of 1 percent) Income At least $0 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 120,000 140,000 160,000 180,000 But less than $20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 120,000 140,000 160,000 180,000 200,000 Local Table A Exemptions 1 2 3 4 5 Over 5 1 Local Table B Exemptions 2 3 4 5 Over 5 1 Local Table C Exemptions 2 3 4 5 Over 5 1 Local Table D Exemptions 2 3 4 5 Over 5 37 61 74 85 96 106 116 125 134 147 164 180 197 213 41 67 81 93 105 115 126 136 145 158 177 194 211 227 44 46 47 49 71 74 76 79 85 89 91 95 98 102 105 109 110 121 132 142 152 166 185 202 220 237 114 126 137 147 157 171 191 209 227 244 117 129 141 151 162 176 196 214 232 249 122 134 146 157 167 182 202 221 240 257 45 51 55 59 61 65 56 64 69 73 76 81 72 82 88 93 96 102 89 101 109 115 120 126 86 98 105 110 115 121 106 120 129 136 142 150 99 112 120 126 131 138 121 137 147 155 162 170 111 122 132 142 152 165 184 201 218 235 124 136 148 159 170 184 204 222 241 258 133 146 158 170 181 196 217 236 256 274 140 153 166 178 190 205 227 247 267 285 146 159 172 185 197 213 235 255 276 295 153 168 181 194 207 223 246 267 289 308 135 148 160 172 183 198 219 237 256 274 152 167 180 193 205 221 244 264 285 304 164 179 193 207 219 237 261 282 304 323 172 188 203 217 230 248 273 296 318 339 179 196 211 226 239 258 284 307 330 351 189 206 222 237 252 271 298 322 346 368 36 62 76 88 100 111 122 132 141 155 173 190 207 224 39 65 80 93 105 117 128 138 148 162 181 199 217 233 40 68 83 96 109 120 132 142 153 167 186 204 222 239 41 42 43 69 70 72 85 86 88 98 100 102 111 123 134 145 156 170 190 208 226 243 113 125 137 148 158 173 193 211 230 247 115 128 140 151 162 176 197 215 234 252 200,000 or more 298 316 327 336 343 352 323 351 370 385 397 413 365 402 427 445 461 482 310 322 329 334 339 345 A-14 Schedule B (Form 1040A or 1040) 2009 Page 2 Nominees. If you received a Form 1099-INT that includes interest you received as a nominee (that is, in your name, but the interest actually belongs to someone else), report the total on line 1. Do this even if you later distributed some or all of this income to others. Under your last entry on line 1, put a subtotal of all interest listed on line 1. Below this subtotal, enter "Nominee Distribution" and show the total interest you received as a nominee. Subtract this amount from the subtotal and enter the result on line 2. If you received interest as a nominee, you must give the actual owner a Form 1099-INT unless the owner is your spouse. You must also file a Form 1096 and a Form 1099-INT with the IRS. For more details, see the General Instructions for Forms 1099, 1098, 3921, 3922, 5498, and W-2G and the Instructions for Forms 1099-INT and 1099-OID. Accrued interest. When you buy bonds between interest payment dates and pay accrued interest to the seller, this interest is taxable to the seller. If you received a Form 1099 for interest as a purchaser of a bond with accrued interest, follow the rules earlier under Nominees to see how to report the accrued interest. But identify the amount to be subtracted as “Accrued Interest.” Original issue discount (OID). If you are reporting OID in an amount less than the amount shown on Form 1099-OID, follow the rules earlier under Nominees to see how to report the OID. But identify the amount to be subtracted as “OID Adjustment.” Amortizable bond premium. If you are reducing your interest income on a bond by the amount of amortizable bond premium, follow the rules earlier under Nominees to see how to report the interest. But identify the amount to be subtracted as “ABP Adjustment.” Line 3. If, during 2009, you cashed series EE or I U.S. savings bonds issued after 1989 and you paid qualified higher education expenses for yourself, your spouse, or your dependents, you may be able to exclude part or all of the interest on those bonds. See Form 8815 for details. General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Part III. Foreign Accounts and Trusts Line 7a. Check the “Yes” box on line 7a if either (1) or (2) below applies. 1. You own more than 50% of the stock in any corporation that owns one or more foreign bank accounts. 2. At any time during 2009 you had an interest in or signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account). For line 7a, item (2) does not apply to foreign securities held in a U.S. securities account. Exceptions. Check the “No” box if any of the following applies to you. • The combined value of the accounts was $10,000 or less during the whole year. • The accounts were with a U.S. military banking facility operated by a U.S. financial institution. • You were an officer or employee of a commercial bank that is supervised by the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance Corporation; the account was in your employer’s name; and you did not have a personal financial interest in the account. • You were an officer or employee of a domestic corporation with securities listed on national securities exchanges or with assets of more than $10 million and 500 or more shareholders of record; the account was in your employer’s name; you did not have a personal financial interest in the account; and the corporation’s chief financial officer has given you written notice that the corporation has filed a current report that includes the account. See Form TD F 90-22.1 to find out if you are considered to have an interest in or signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account). You can get Form TD F 90-22.1 by visiting the IRS website at www.irs.gov/pub/irs-pdf/f90221.pdf. If you checked the “Yes” box on line 7a, file Form TD F 90-22.1 by June 30, 2010, with the Department of the Treasury at the address shown on that form. Do not attach it to Form 1040. If you are required to file Form TD F 90-22.1 but do not do so, you may have to pay a penalty of up to $10,000 (more in some cases). Line 7b. If you checked the “Yes” box on line 7a, enter the name of the foreign country or countries in the space provided on line 7b. Attach a separate statement if you need more space. Line 8. If you received a distribution from a foreign trust, you must provide additional information. For this purpose, a loan of cash or marketable securities generally is considered to be a distribution. See Form 3520 for details. If you were the grantor of, or transferor to, a foreign trust that existed during 2009, you may have to file Form 3520. Do not attach Form 3520 to Form 1040. Instead, file it at the address shown in its instructions. If you were treated as the owner of a foreign trust under the grantor trust rules, you are also responsible for ensuring that the foreign trust files Form 3520-A. Form 3520-A is due on March 15, 2010, for a calendar year trust. See the instructions for Form 3520-A for more details. What's New Form 1040A. Form 1040A filers will now file Schedule B to report interest and ordinary dividends. Schedule 1 (Form 1040A), Interest and Ordinary Dividends for Form 1040A Filers, is now obsolete. For any prior year returns (before 2009) that need to be filed, still use Schedule 1. Schedule A. Schedule A, Itemized Deductions, is no longer associated with Schedule B. Schedules A and B are now separate schedules. Purpose of Form Use Schedule B if any of the following applies. • You had over $1,500 of taxable interest or ordinary dividends. • You received interest from a seller-financed mortgage and the buyer used the property as a personal residence. • You have accrued interest from a bond. • You are reporting original issue discount (OID) in an amount less than the amount shown on Form 1099-OID. • You are reducing your interest income on a bond by the amount of amortizable bond premium. • You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued after 1989. • You received interest or ordinary dividends as a nominee. • You had a foreign account or you received a distribution from, or were a grantor of, or transferor to, a foreign trust. Part III of the schedule has questions about foreign accounts and trusts. Specific Instructions You can list more than one payer on each entry space for lines 1 and 5, but be sure to clearly show the amount paid next to the payer's name. Add the separate amounts paid by the payers listed on an entry space and enter the total in the “Amount” column. If you still need more space, attach separate statements that are the same size as the printed schedule. Use the same format as lines 1 and 5, but show your totals on Schedule B. Be sure to put your name and social security number (SSN) on the statements and attach them at the end of your return. Part II. Ordinary Dividends You may have to file Form 5471 if, in 2009, you were an officer or director of a foreign corporation. You may also have to file Form 5471 if, in 2009, you owned 10% or more of the total (a) value of a foreign corporation’s stock, or (b) combined voting power of all classes of a foreign corporation’s stock with voting rights. For details, see Form 5471 and its instructions. Line 5. Report on line 5 all of your ordinary dividends. This amount should be shown in box 1a of your Forms 1099-DIV or substitute statements. List each payer’s name and show the amount. Nominees. If you received a Form 1099-DIV that includes ordinary dividends you received as a nominee (that is, in your name, but the ordinary dividends actually belong to someone else), report the total on line 5. Do this even if you later distributed some or all of this income to others. Under your last entry on line 5, put a subtotal of all ordinary dividends listed on line 5. Below this subtotal, enter “Nominee Distribution” and show the total ordinary dividends you received as a nominee. Subtract this amount from the subtotal and enter the result on line 6. If you received dividends as a nominee, you must give the actual owner a Form 1099-DIV unless the owner is your spouse. You must also file a Form 1096 and a Form 1099-DIV with the IRS. For more details, see the General Instructions for Forms 1099, 1098, 3921, 3922, 5498, and W-2G and the Instructions for Form 1099-DIV. Part I. Interest Line 1. Report on line 1 all of your taxable interest. Taxable interest should be shown on your Forms 1099-INT, Forms 1099-OID, or substitute statements. Include interest from series EE, H, HH, and I U.S. savings bonds. List each payer’s name and show the amount. Do not report on this line any tax-exempt interest from box 8 or box 9 of Form 1099-INT. Instead, report the amount from box 8 on line 8b of Form 1040A or 1040. If an amount is shown in box 9 of Form 1099-INT, you generally must report it on line 13 of Form 6251. See the Instructions for Form 6251 for more details. Seller-financed mortgages. If you sold your home or other property and the buyer used the property as a personal residence, list first any interest the buyer paid you on a mortgage or other form of seller financing. Be sure to show the buyer’s name, address, and SSN. You must also let the buyer know your SSN. If you do not show the buyer’s name, address, and SSN, or let the buyer know your SSN, you may have to pay a $50 penalty. Department of the Treasury Internal Revenue Service 2009 Instructions for Schedule C Use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if your Profit or Loss primary purpose for engaging in the activity is for income or profit and you are involved in activity with continuity hobby does From Business the Form 1040,a business.orToand regularity. For example, a sporadic activity or a instructions not qualify as report income from a nonbusiness activity, see the for line 21, Form 1040NR, line 21. Also, use Schedule C to report (a) wages and expenses you had as a statutory employee, (b) income and deductions of qualified joint ventures, and (c) certain income shown on Form 1099-MISC, Miscellaneous Income. See the Instructions for Recipients (back of Copy B of Form 1099-MISC) for the types of income to report on Schedule C. Small businesses and statutory employees with expenses of $5,000 or less may be able to file Schedule C-EZ instead of Schedule C. See Schedule C-EZ for details. You may be subject to state and local taxes and other requirements such as business licenses and fees. Check with your state and local governments for more information. Section references are to the Internal Revenue Code unless otherwise noted. General Instructions Other Schedules and Forms You May Have To File • Schedule A to deduct interest, taxes, What’s New Single – member limited liability companies (LLCs) with employees. Single-member LLCs that are disregarded as entities separate from their owner for federal income tax purposes are now required to file employment tax returns (effective for wages paid on or after January 1, 2009) using the LLC’s name and employer identification number (EIN) rather than the LLC owner’s name and EIN. This new requirement to use the LLC’s name and EIN also went into effect for certain excise tax returns beginning in 2008. Single-member LLCs not previously needing an EIN may now need to obtain an EIN for the payment and reporting of these taxes. For more information, see the Instructions for Form SS-4. Increased section 179 deduction extended. The dollar limit for the section 179 deduction to expense certain depreciable business property is $250,000 for property placed in service in 2009. This limit will be reduced when the total cost of section 179 property placed in service during the tax year exceeds $800,000. For more information, see Pub. 946. Special depreciation allowance. For qualifying property acquired and placed in service in 2009, you may be able to take a depreciation deduction equal to 50% of the adjusted basis of the property. Qualifying property includes certain property with a recovery period of 20 years or less, certain computer software, water utility property, or qualified leasehold improvements. For more information, see Pub. 946. and casualty losses not related to your business. • Schedule E to report rental real estate and royalty income or (loss) that is not subject to self-employment tax. • Schedule F to report profit or (loss) from farming. • Schedule J to figure your tax by averaging your farming or fishing income over the previous 3 years. Doing so may reduce your tax. • Schedule SE to pay self-employment tax on income from any trade or business. • Form 3800 to claim any of the general business credits. • Form 4562 to claim depreciation (including the special allowance) on assets placed in service in 2009, to claim amortization that began in 2009, to make an election under section 179 to expense certain property, or to report information on listed property. • Form 4684 to report a casualty or theft gain or loss involving property used in your trade or business or income-producing property. • Form 4797 to report sales, exchanges, and involuntary conversions (not from a casualty or theft) of trade or business property. • Form 6198 to figure your allowable loss if you have a business loss and you have amounts invested in the business for which you are not at risk. • Form 8582 to figure your deductible loss from passive activities. • Form 8594 to report certain purchases or sales of groups of assets that constitute a trade or business. • Form 8824 to report like-kind exchanges. • Form 8829 to claim expenses for business use of your home. • Form 8903 to take a deduction for income from domestic production activities. Single-member limited liability company (LLC). Generally, a single-member do- mestic LLC is not treated as a separate entity for federal income tax purposes. If you are the sole member of a domestic LLC, file Schedule C or C-EZ (or Schedule E or F, if applicable). However, you can elect to treat a domestic LLC as a corporation. See Form 8832 for details on the election and the tax treatment of a foreign LLC. Heavy highway vehicle use tax. If you use certain highway trucks, truck-trailers, tractor-trailers, or buses in your trade or business, you may have to pay a federal highway motor vehicle use tax. See the Instructions for Form 2290 to find out if you must pay this tax. Information returns. You may have to file information returns for wages paid to employees, certain payments of fees and other nonemployee compensation, interest, rents, royalties, real estate transactions, annuities, and pensions. You may also have to file an information return if you sold $5,000 or more of consumer products to a person on a buy-sell, deposit-commission, or other similar basis for resale. For details, see the 2009 General Instructions for Forms 1099, 1098, 3921, 3922, 5498, and W-2G. If you received cash of more than $10,000 in one or more related transactions in your trade or business, you may have to file Form 8300. For details, see Pub. 1544. Husband-Wife Business Generally, if you and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you C-1 Cat. No. 24329W are partners in a partnership, whether or not you have a formal partnership agreement. Do not use Schedule C or C-EZ. Instead, file Form 1065. See Pub. 541 for more details. Exception —Qualified Joint Venture If you and your spouse each materially participate (see Material participation on page C-3) as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. By making the election, you will not be required to file Form 1065 for any year the election is in effect and will instead report the income and deductions directly on your joint return. If you and your spouse filed a Form 1065 for the year prior to the election, the partnership terminates at the end of the tax year immediately preceding the year the election takes effect. Note. Mere joint ownership of property a state, foreign country, or U.S. possession, the income and deductions are reported as follows. • If only one spouse participates in the business, all of the income from that business is the self-employment earnings of the spouse who carried on the business. • If both spouses participate, the income and deductions are allocated to the spouses based on their distributive shares. • If either or both you and your spouse are partners in a partnership, see Pub. 541. • If you and your spouse elected to treat the business as a qualifying joint venture, see Exception — Qualified Joint Venture on this page. The only states with community property laws are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. A change in your reporting position will be treated as a conversion of the entity. enter “CCF” and the amount of the deduction. For details, see Pub. 595. Additional Information See Pub. 334 for more information for small businesses. Specific Instructions Filers of Form 1041. Do not complete the block labeled “Social security number (SSN).” Instead, enter the employer identification number (EIN) issued to the estate or trust on line D. Line A Describe the business or professional activity that provided your principal source of income reported on line 1. If you owned more than one business, you must complete a separate Schedule C for each business. Give the general field or activity and the type of product or service. If your general field or activity is wholesale or retail trade, or services connected with production services (mining, construction, or manufacturing), also give the type of customer or client. For example, “wholesale sale of hardware to retailers” or “appraisal of real estate for lending institutions.” that is not a trade or business does not qualify for the election. Making the election. To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Each of you must file a separate Schedule C, C-EZ, or F. On each line of your separate Schedule C, C-EZ, or F, you must enter your share of the applicable income, deduction, or loss. Each of you must also file a separate Schedule SE to pay self-employment tax, as applicable. Reportable Transaction Disclosure Statement Use Form 8886 to disclose information for each reportable transaction in which you participated. Form 8886 must be filed for each tax year that your federal income tax liability is affected by your participation in the transaction. You may have to pay a penalty if you are required to file Form 8886 but do not do so. You may also have to pay interest and penalties on any reportable transaction understatements. The following are reportable transactions. • Any listed transaction that is the same as or substantially similar to tax avoidance transactions identified by the IRS. • Any transaction offered to you or a related party under conditions of confidentiality for which you paid an advisor a fee of at least $50,000. • Certain transactions for which you or a related party have contractual protection against disallowance of the tax benefits. • Certain transactions resulting in a loss of at least $2 million in any single tax year or $4 million in any combination of tax years. (At least $50,000 for a single tax year if the loss arose from a foreign currency transaction defined in section 988(c)(1), whether or not the loss flows through from an S corporation or partnership.) • Certain transactions of interest entered into after November 1, 2006, that are the same or substantially similar to one of the types of transactions that the IRS has identified by published guidance as a transaction of interest. See the Instructions for Form 8886 for more details. Line D Enter on line D the employer identification number (EIN) that was issued to you on Form SS-4. Do not enter your SSN. Do not enter another taxpayer’s EIN (for example, from any Forms 1099-MISC that you received). If you do not have an EIN, leave line D blank. You need an EIN only if you have a qualified retirement plan or are required to file employment, excise, alcohol, tobacco, or firearms returns, or are a payer of gambling winnings. If you need an EIN, see the Instructions for Form SS-4. Single member LLCs. If you are the sole owner of an LLC that is not treated as a separate entity for federal income tax purposes, you may have an EIN that was issued to the LLC (and in the LLC’s legal name) if you are required to file employment tax returns and certain excise tax returns. However, you should enter on line D only the EIN issued to you and in your name as a sole proprietor. If you do not have such an EIN, leave line D blank. Do not enter on line D the EIN issued to the LLC. If you have employees or otherwise need an employer identification number (EIN) for the business, see www.irs.gov, keyword “qualified joint venture,” for more information. Once made, the election can be revoked only with the permission of the IRS. However, the election technically remains in effect only for as long as the spouses filing as a qualified joint venture continue to meet the requirements for filing the election. If the spouses fail to meet the qualified joint venture requirements for a year, a new election will be necessary for any future year in which the spouses meet the requirements to be treated as a qualified joint venture. Rental real estate business. If you and your spouse make the election for your rental real estate business, you must each report your share of income and deductions on Schedule C or C-EZ instead of Schedule E. Rental real estate income generally is not included in net earnings from self-employment subject to self-employment tax and generally is subject to the passive loss limitation rules. Electing qualified joint venture status and using the Schedule C or C-EZ does not alter the application of the self-employment tax or the passive loss limitation rules. Capital Construction Fund Do not claim on Schedule C or C-EZ the deduction for amounts contributed to a capital construction fund set up under chapter 535 of title 46 of the United States Code. Instead, reduce the amount you would otherwise enter on Form 1040, line 43, by the amount of the deduction. Next to line 43, Line E Enter your business address. Show a street address instead of a box number. Include the suite or room number, if any. If you conducted the business from your home located at the address shown on Form 1040, page 1, you do not have to complete this line. Exception —Community Income If you and your spouse wholly own an unincorporated business as community property under the community property laws of C-2 Line F Generally, you can use the cash method, accrual method, or any other method permitted by the Internal Revenue Code. In all cases, the method used must clearly reflect income. Unless you are a qualifying taxpayer or a qualifying small business taxpayer (see the Part III instructions on page C-8), you must use the accrual method for sales and purchases of inventory items. Special rules apply to long-term contracts (see section 460 for details). If you use the cash method, show all items of taxable income actually or constructively received during the year (in cash, property, or services). Income is constructively received when it is credited to your account or set aside for you to use. Also, show amounts actually paid during the year for deductible expenses. However, if the payment of an expenditure creates an asset having a useful life that extends substantially beyond the close of the year, it may not be deductible or may be deductible only in part for the year of the payment. See chapter 1 of Pub. 535. If you use the accrual method, report income when you earn it and deduct expenses when you incur them even if you do not pay them during the tax year. Accrual-basis taxpayers are put on a cash basis for deducting business expenses owed to a related cash-basis taxpayer. Other rules determine the timing of deductions based on economic performance. See Pub. 538. To change your accounting method, you generally must file Form 3115. You may also have to make an adjustment to prevent amounts of income or expense from being duplicated or omitted. This is called a section 481(a) adjustment. Example. You change to the cash method of accounting and choose to account for inventoriable items in the same manner as materials and supplies that are not incidental. You accrued sales in 2008 for which you received payment in 2009. You must report those sales in both years as a result of changing your accounting method and must make a section 481(a) adjustment to prevent duplication of income. A net negative section 481(a) adjustment is taken into account entirely in the year of the change. A net positive section 481(a) adjustment is generally taken into account over a period of 4 years. Include any net positive section 481(a) adjustments on line 6. If the net section 481(a) adjustment is negative, report it in Part V. For details on figuring section 481(a) adjustments, see the Instructions for Form 3115, and Rev. Proc. 2006-12, 2006-3 I.R.B. 310, available at www.irs.gov/irb/2006-03_IRB/ar14.html. Also see Rev. Proc. 2006-37, 2006-38 I.R.B. 499, available at www.irs.gov/irb/2006-38_IRB/ar10.html. Otherwise, check the “No” box. If you check the “No” box, this business is a passive activity. If you have a loss from this business, see Limit on losses later on this page. If you have a profit from this business activity but have current year losses from other passive activities or you have prior year unallowed passive activity losses, see the Instructions for Form 8582. Material participation. For purposes of the seven material participation tests listed below, participation generally includes any work you did in connection with an activity if you owned an interest in the activity at the time you did the work. The capacity in which you did the work does not matter. However, work is not treated as participation if it is work that an owner would not customarily do in the same type of activity and one of your main reasons for doing the work was to avoid the disallowance of losses or credits from the activity under the passive activity rules. Work you did as an investor in an activity is not treated as participation unless you were directly involved in the day-to-day management or operations of the activity. Work done as an investor includes: • Studying and reviewing financial statements or reports on the activity, • Preparing or compiling summaries or analyses of the finances or operations of the activity for your own use, and • Monitoring the finances or operations of the activity in a nonmanagerial capacity. Participation by your spouse during the tax year in an activity you own can be counted as your participation in the activity. This rule applies even if your spouse did not own an interest in the activity and whether or not you and your spouse file a joint return. However, this rule does not apply for purposes of determining whether you and your spouse can elect to have your business treated as a qualified joint venture instead of a partnership(see Exception-Qualified Joint Venture on page C-2 under Husband-Wife Business). For purposes of the passive activity rules, you materially participated in the operation of this trade or business activity during 2009 if you met any of the following seven tests. 1. You participated in the activity for more than 500 hours during the tax year. 2. Your participation in the activity for the tax year was substantially all of the participation in the activity of all individuals (including individuals who did not own any interest in the activity) for the tax year. 3. You participated in the activity for more than 100 hours during the tax year, and you participated at least as much as any other person for the tax year. This includes individuals who did not own any interest in the activity. 4. The activity is a significant participation activity for the tax year, and you participated in all significant participation activities for more than 500 hours during the year. An activity is a “significant participation activity” if it involves the conduct of a trade or business, you participated in the activity for more than 100 hours during the tax year, and you did not materially participate under any of the material participation tests (other than this test 4). 5. You materially participated in the activity for any 5 of the prior 10 tax years. 6. The activity is a personal service activity in which you materially participated for any 3 prior tax years. A personal service activity is an activity that involves performing personal services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, or any other trade or business in which capital is not a material income-producing factor. 7. Based on all the facts and circumstances, you participated in the activity on a regular, continuous, and substantial basis for more than 100 hours during the tax year. Your participation in managing the activity does not count in determining if you meet this test if any person (except you) (a) received compensation for performing management services in connection with the activity, or (b) spent more hours during the tax year than you spent performing management services in connection with the activity (regardless of whether the person was compensated for the services). Rental of property. Generally, a rental ac- tivity (such as long-term equipment leasing or rental real estate) is a passive activity even if you materially participated in the activity. However, if you materially participated in a rental real estate activity as a real estate professional, it is not a passive activity. Also, if you met any of the five exceptions listed under Rental Activities in the Instructions for Form 8582, the rental of the property is not treated as a rental activity and the material participation rules above apply. See Activities That Are Not Passive Activities in the Instructions for Form 8582 for the definition of a real estate professional. Exception for oil and gas. If you are filing Schedule C to report income and deductions from an oil or gas well in which you own a working interest directly or through an entity that does not limit your liability, check the “Yes” box. The activity of owning a working interest is not a passive activity, regardless of your participation. Limit on losses. Your loss may be limited if: or • You checked the “No” box on line G, • You are a qualified joint venture reporting only rental real estate income, but not as a real estate professional. In these situations you may have a loss from a passive activity, and you may have to use Form 8582 to figure your allowable loss, if any, to enter on Schedule C, line 31. Generally, you can deduct losses from passive activities only to the extent of income from passive activities. For details, see Pub. 925. Line G If your business activity was not a rental activity and you met any of the material participation tests, explained next, or the exception for oil and gas applies (explained later on this page), check the “Yes” box. Line H If you started or acquired this business in 2009, check the box on line H. Also check the box if you are reopening or restarting C-3 this business after temporarily closing it, and you did not file a 2008 Schedule C or C-EZ for this business. rately for 2009 and the 3 preceding years: gross sales, cost of goods sold, gross profit, percentage of gross profit to gross sales, amounts collected, and gross profit on amounts collected. Part I. Income Except as otherwise provided in the Internal Revenue Code, gross income includes income from whatever source derived. In certain circumstances, however, gross income does not include extraterritorial income that is qualifying foreign trade income. Use Form 8873 to figure the extraterritorial income exclusion. Report it on Schedule C as explained in the Instructions for Form 8873. If you were a debtor in a chapter 11 bankruptcy case during 2009, see page 21 of the instructions for Form 1040 and page SE-2 of the instructions for Schedule SE (Form 1040). Line 6 Report on line 6 amounts from finance reserve income, scrap sales, bad debts you recovered, interest (such as on notes and accounts receivable), state gasoline or fuel tax refunds you received in 2009, credit for biodiesel and renewable diesel fuels claimed on line 8 of Form 8864, credit for alcohol and cellulosic biofuel fuels claimed on line 6 of Form 6478, credit for federal tax paid on fuels claimed on your 2008 Form 1040, prizes and awards related to your trade or business, and other kinds of miscellaneous business income. Include amounts you received in your trade or business as shown on Form 1099-PATR. Also, include any recapture of the deduction for clean-fuel vehicles and clean-fuel vehicle refueling property used in your business. See Regulations section 1.179A-1 for details. If the business use percentage of any listed property (defined in the instructions for line 13) dropped to 50% or less in 2009, report on this line any recapture of excess depreciation, including any section 179 expense deduction. Use Part IV of Form 4797 to figure the recapture. Also, if the business use percentage drops to 50% or less on leased listed property (other than a vehicle), include on this line any inclusion amount. See chapter 5 of Pub. 946 to figure the amount. Exception for creative property. If you are a freelance artist, author, or photographer, you may be exempt from the capitalization rules. However, your personal efforts must have created (or reasonably be expected to create) the property. This exception does not apply to any expense related to printing, photographic plates, motion picture films, video tapes, or similar items. These expenses are subject to the capitalization rules. For details, see Uniform Capitalization Rules in Pub. 538. Line 9 You can deduct the actual expenses of operating your car or truck or take the standard mileage rate. You must use actual expenses if you used your vehicle for hire (such as a taxicab) or you used five or more vehicles simultaneously in your business (such as in fleet operations). You cannot use actual expenses for a leased vehicle if you previously used the standard mileage rate for that vehicle. You can take the standard mileage rate for 2009 only if you: • Owned the vehicle and used the standard mileage rate for the first year you placed the vehicle in service, or • Leased the vehicle and are using the standard mileage rate for the entire lease period (except the period, if any, before 1998). If you take the standard mileage rate: Line 1 Enter gross receipts from your trade or business. Include amounts you received in your trade or business that were properly shown on Forms 1099-MISC. If the total amounts that were reported in box 7 of Forms 1099-MISC are more than the total you are reporting on line 1, attach a statement explaining the difference. Statutory employees. If you received a Form W-2 and the “Statutory employee” box in box 13 of that form was checked, report your income and expenses related to that income on Schedule C or C-EZ. Enter your statutory employee income from box 1 of Form W-2 on line 1 of Schedule C or C-EZ and check the box on that line. Social security and Medicare tax should have been withheld from your earnings; therefore, you do not owe self-employment tax on these earnings. Statutory employees include full-time life insurance agents, certain agent or commission drivers and traveling salespersons, and certain homeworkers. If you had both self-employment income and statutory employee income, you must file two Schedules C. You cannot use Schedule C-EZ or combine these amounts on a single Schedule C. Qualified joint ventures reporting only rental real estate income. See the instruc- Part II. Expenses Capitalizing costs of property. If you pro- tions under Rental real estate business on page C-2. Installment sales. Generally, the installment method cannot be used to report income from the sale of (a) personal property regularly sold under the installment method, or (b) real property held for resale to customers. But the installment method can be used to report income from sales of certain residential lots and timeshares if you elect to pay interest on the tax due on that income after the year of sale. See section 453(l)(2)(B) for details. If you make this election, include the interest in the total on Form 1040, line 60. Also, enter “453(l)(3)” and the amount of the interest on the dotted line to the left of line 60. If you use the installment method, attach a schedule to your return. Show sepa- duced real or tangible personal property or acquired property for resale, certain expenses attributable to the property generally must be included in inventory costs or capitalized. In addition to direct costs, producers of inventory property generally must also include part of certain indirect costs in their inventory. Purchasers of personal property acquired for resale must include part of certain indirect costs in inventory only if the average annual gross receipts for the 3 prior tax years exceed $10 million. Also, you must capitalize part of the indirect costs that benefit real or tangible personal property constructed for use in a trade or business, or noninventory property produced for sale to customers. Reduce the amounts on lines 8 through 26 and Part V by amounts capitalized. See Pub. 538 for a discussion of uniform capitalization rules. Exception for certain producers. Producers who account for inventoriable items in the same manner as materials and supplies that are not incidental can currently deduct expenditures for direct labor and all indirect costs that would otherwise be included in inventory costs. See Part III. Cost of Goods Sold on page C-8 for more details. • Multiply the number of business miles driven by 55 cents, and • Add to this amount your parking fees and tolls, and enter the total on line 9. Do not deduct depreciation, rent or lease payments, or your actual operating expenses. If you deduct actual expenses: • Include on line 9 the business portion of expenses for gasoline, oil, repairs, insurance, tires, license plates, etc., and • Show depreciation on line 13 and rent or lease payments on line 20a. For details, see chapter 4 of Pub. 463. Information on your vehicle. If you claim any car and truck expenses, you must provide certain information on the use of your vehicle by completing one of the following. • Schedule C, Part IV, or Schedule C-EZ, Part III, if: (a) you are claiming the standard mileage rate, you lease your vehicle, or your vehicle is fully depreciated, and (b) you are not required to file Form 4562 for any other reason. If you used more than one vehicle during the year, attach your own schedule with the information requested in Schedule C, Part IV, or Schedule C-EZ, Part III, for each additional vehicle. • Form 4562, Part V, if you are claiming depreciation on your vehicle or you are required to file Form 4562 for any other reason (see the instructions for line 13). Line 11 Enter the total cost of contract labor for the tax year. Contract labor includes payments C-4 to persons you do not treat as employees (for example, independent contractors) for services performed for your trade or business. Do not include contract labor deducted elsewhere on your return, such as contract labor that is includible on line 17, 21, 26, or 37. Also, do not include salaries and wages paid to your employees, instead see line 26. You must file Form 1099-MISC, Miscellaneous Income, to report contract labor payments of $600 or more during the year. See the Instructions for Form 1099-MISC for details. Line 12 Enter your deduction for depletion on this line. If you have timber depletion, attach Form T. See chapter 9 of Pub. 535 for details. munication, or video equipment used exclusively in your trade or business or at your regular business establishment. It also does not include any computer or peripheral equipment used exclusively at a regular business establishment and owned or leased by the person operating the establishment. For purposes of these exceptions, a portion of your home is treated as a regular business establishment only if that portion meets the requirements under section 280A(c)(1) for deducting expenses for the business use of your home. See the instructions for line 6 on page C-4 if the business use percentage of any listed property dropped to 50% or less in 2009. Line 14 Deduct contributions to employee benefit programs that are not an incidental part of a pension or profit-sharing plan included on line 19. Examples are accident and health plans, group-term life insurance, and dependent care assistance programs. If you made contributions on your behalf as a self-employed person to a dependent care assistance program, complete Form 2441, Parts I and III, to figure your deductible contributions to that program. You cannot deduct contributions you made on your behalf as a self-employed person for group-term life insurance. Do not include on line 14 any contributions you made on your behalf as a self-employed person to an accident and health plan. However, you may be able to deduct on Form 1040, line 29, or Form 1040NR, line 28, the amount you paid for health insurance on behalf of yourself, your spouse, and dependents, even if you do not itemize your deductions. See the instructions for Form 1040, line 29, or Form 1040NR, line 28, for details. Line 13 Depreciation and section 179 expense deduction. Depreciation is the annual deduc- tion allowed to recover the cost or other basis of business or investment property having a useful life substantially beyond the tax year. You can also depreciate improvements made to leased business property. However, stock in trade, inventories, and land are not depreciable. Depreciation starts when you first use the property in your business or for the production of income. It ends when you take the property out of service, deduct all your depreciable cost or other basis, or no longer use the property in your business or for the production of income. You can also elect under section 179 to expense part or all of the cost of certain property you bought in 2009 for use in your business. See the Instructions for Form 4562 and Pub. 946 to figure the amount to enter on line 13. When to attach Form 4562. You must complete and attach Form 4562 only if you are claiming: • Depreciation on property placed in service during 2009; • Depreciation on listed property (defined below), regardless of the date it was placed in service; or • A section 179 expense deduction. If you acquired depreciable property for the first time in 2009, see Pub. 946. Listed property generally includes, but is not limited to: • Passenger automobiles weighing 6,000 pounds or less; • Any other property used for transportation if the nature of the property lends itself to personal use, such as motorcycles, pickup trucks, etc.; • Any property used for entertainment or recreational purposes (such as photographic, phonographic, communication, and video recording equipment); • Cellular telephones or other similar telecommunications equipment; and • Computers or peripheral equipment. Exceptions. Listed property does not include photographic, phonographic, com- If you paid interest on a debt secured by your main home and any of the proceeds from that debt were used in connection with your trade or business, see chapter 4 of Pub. 535 to figure the amount that is deductible on Schedule C or C-EZ. How to report. If you have a mortgage on real property used in your business (other than your main home), enter on line 16a the interest you paid for 2009 to banks or other financial institutions for which you received a Form 1098 (or similar statement). If you did not receive a Form 1098, enter the interest on line 16b. If you paid more mortgage interest than is shown on Form 1098, see chapter 4 of Pub. 535 to find out if you can deduct the additional interest. If you can, include the amount on line 16a. Attach a statement to your return explaining the difference and enter “See attached” in the margin next to line 16a. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on the mortgage and the other person received the Form 1098, include your share of the interest on line 16b. Attach a statement to your return showing the name and address of the person who received the Form 1098. In the margin next to line 16b, enter “See attached.” If you paid interest in 2009 that also applies to future years, deduct only the part that applies to 2009. Line 17 Include on this line fees charged by accountants and attorneys that are ordinary and necessary expenses directly related to operating your business. Include fees for tax advice related to your business and for preparation of the tax forms related to your business. Also, include expenses incurred in resolving asserted tax deficiencies relating to your business. For more information, see Pub. 334 or 535. Line 15 Deduct premiums paid for business insurance on line 15. Deduct on line 14 amounts paid for employee accident and health insurance. Do not deduct amounts credited to a reserve for self-insurance or premiums paid for a policy that pays for your lost earnings due to sickness or disability. For details, see chapter 6 of Pub. 535. Line 18 Include on this line your expenses for office supplies and postage. Lines 16a and 16b Interest allocation rules. The tax treatment Line 19 Enter your deduction for contributions to a pension, profit-sharing, or annuity plan, or plan for the benefit of your employees. If the plan included you as a self-employed person, enter contributions made as an employer on your behalf on Form 1040, line 28, or Form 1040NR, line 27, not on Schedule C. Generally, you must file the applicable form listed below if you maintain a pension, profit-sharing, or other funded-deferred compensation plan. The filing requirement is not affected by whether or not the plan qualified under the Internal Revenue Code, or whether or not you claim of interest expense differs depending on its type. For example, home mortgage interest and investment interest are treated differently. “Interest allocation” rules require you to allocate (classify) your interest expense so it is deducted (or capitalized) on the correct line of your return and receives the right tax treatment. These rules could affect how much interest you are allowed to deduct on Schedule C or C-EZ. Generally, you allocate interest expense by tracing how the proceeds of the loan were used. See chapter 4 of Pub. 535 for details. C-5 a deduction for the current tax year. There is a penalty for failure to timely file these forms. Form 5500-EZ. File this form if you have a one-participant retirement plan that meets certain requirements. A one-participant plan is a plan that covers only you (or you and your spouse). Form 5500. File this form for a plan that does not meet the requirements for filing Form 5500-EZ. For details, see Pub. 560. Lines 20a and 20b If you rented or leased vehicles, machinery, or equipment, enter on line 20a the business portion of your rental cost. But if you leased a vehicle for a term of 30 days or more, you may have to reduce your deduction by an amount called the inclusion amount. See Leasing a Car in chapter 4 of Pub. 463 to figure this amount. Enter on line 20b amounts paid to rent or lease other property, such as office space in a building. Line 21 Deduct the cost of incidental repairs and maintenance that do not add to the property’s value or appreciably prolong its life. Do not deduct the value of your own labor. Do not deduct amounts spent to restore or replace property; they must be capitalized. as liquor licenses, may have to be amortized. See chapter 8 of Pub. 535 for details. • Social security and Medicare taxes paid to match required withholding from your employees’ wages. Reduce your deduction by the amount shown on Form 8846, line 4. • Federal unemployment tax paid. • Federal highway use tax. • Contributions to state unemployment insurance fund or disability benefit fund if they are considered taxes under state law. Do not deduct the following. • Federal income taxes, including your self-employment tax. However, you can deduct one-half of your self-employment tax on Form 1040, line 27. • Estate and gift taxes. • Taxes assessed to pay for improvements, such as paving and sewers. • Taxes on your home or personal use property. • State and local sales taxes on property purchased for use in your business. Instead, treat these taxes as part of the cost of the property. • State and local sales taxes imposed on the buyer that you were required to collect and pay over to state or local governments. These taxes are not included in gross receipts or sales nor are they a deductible expense. However, if the state or local government allowed you to retain any part of the sales tax you collected, you must include that amount as income on line 6. • Other taxes and license fees not related to your business. dard meal allowance (as explained in the instructions for line 24b). You cannot deduct expenses for attending a convention, seminar, or similar meeting held outside the North American area unless the meeting is directly related to your trade or business and it is as reasonable for the meeting to be held outside the North American area as within it. These rules apply to both employers and employees. Other rules apply to luxury water travel. For details on travel expenses, see chapter 1 of Pub. 463. Line 24b Enter your total deductible business meal and entertainment expenses. This includes expenses for meals while traveling away from home for business and for meals that are business-related entertainment. Deductible expenses. Business meal expenses are deductible only if they are (a) directly related to or associated with the active conduct of your trade or business, (b) not lavish or extravagant, and (c) incurred while you or your employee is present at the meal. You cannot deduct any expense paid or incurred for a facility (such as a yacht or hunting lodge) used for any activity usually considered entertainment, amusement, or recreation. Also, you cannot deduct membership dues for any club organized for business, pleasure, recreation, or other social purpose. This includes country clubs, golf and athletic clubs, airline and hotel clubs, and clubs operated to provide meals under conditions favorable to business discussion. But it does not include civic or public service organizations, professional organizations (such as bar and medical associations), business leagues, trade associations, chambers of commerce, boards of trade, and real estate boards, unless a principal purpose of the organization is to entertain, or provide entertainment facilities for, members or their guests. There are exceptions to these rules as well as other rules that apply to sky-box rentals and tickets to entertainment events. See Pub. 463, chapters 1 and 2. Standard meal allowance. Instead of deducting the actual cost of your meals while traveling away from home, you can use the standard meal allowance for your daily meals and incidental expenses. Under this method, you deduct a specified amount, depending on where you travel, instead of keeping records of your actual meal expenses. However, you must still keep records to prove the time, place, and business purpose of your travel. The standard meal allowance is the federal M&IE rate. You can find these rates on the Internet at www.gsa.gov. Click on “Per Diem Rates” for links to locations inside and outside the continental United States. See chapter 1 of Pub. 463 for details on how to figure your deduction using the standard meal allowance, including special rules for partial days of travel. Line 22 Generally, you can deduct the cost of materials and supplies only to the extent you actually consumed and used them in your business during the tax year (unless you deducted them in a prior tax year). However, if you had incidental materials and supplies on hand for which you kept no inventories or records of use, you can deduct the cost of those you actually purchased during the tax year, provided that method clearly reflects income. You can also deduct the cost of books, professional instruments, equipment, etc., if you normally use them within a year. However, if their usefulness extends substantially beyond a year, you must generally recover their costs through depreciation. Line 24a Enter your expenses for lodging and transportation connected with overnight travel for business while away from your tax home. Generally, your tax home is your main place of business, regardless of where you maintain your family home. You cannot deduct expenses paid or incurred in connection with employment away from home if that period of employment exceeds 1 year. Also, you cannot deduct travel expenses for your spouse, your dependent, or any other individual unless that person is your employee, the travel is for a bona fide business purpose, and the expenses would otherwise be deductible by that person. Do not include expenses for meals and entertainment on this line. Instead, see the instructions for line 24b. Instead of keeping records of your actual incidental expenses, you can use an optional method for deducting incidental expenses only if you did not pay or incur meal expenses on a day you were traveling away from your tax home. The amount of the deduction is $3 a day. Incidental expenses include fees and tips given to porters, baggage carriers, bellhops, hotel maids, stewards or stewardesses and others on ships, and hotel servants in foreign countries. They do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, or the costs of telegrams or telephone calls. You cannot use this method on any day that you use the stan- Line 23 You can deduct the following taxes and licenses on this line. • State and local sales taxes imposed on you as the seller of goods or services. If you collected this tax from the buyer, you must also include the amount collected in gross receipts or sales on line 1. • Real estate and personal property taxes on business assets. • Licenses and regulatory fees for your trade or business paid each year to state or local governments. But some licenses, such C-6 Amount of deduction. Generally, you can deduct only 50% of your business meal and entertainment expenses, including meals incurred while away from home on business. However, for individuals subject to the Department of Transportation (DOT) hours of service limits, that percentage is increased to 80% for business meals consumed during, or incident to, any period of duty for which those limits are in effect. Individuals subject to the DOT hours of service limits include the following. • Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. • Interstate truck operators who are under DOT regulations. • Certain merchant mariners who are under Coast Guard regulations. However, you can fully deduct meals, incidentals, and entertainment furnished or reimbursed to an employee if you properly treat the expense as wages subject to withholding. You can also fully deduct meals, incidentals, and entertainment provided to a nonemployee to the extent the expenses are includible in the gross income of that person and reported on Form 1099-MISC. See Pub. 535 for details and other exceptions. Daycare providers. If you qualify as a • Form 8932, Credit for Employer Differential Wage Payments, line 2. If you provided taxable fringe benefits to your employees, such as personal use of a car, do not deduct as wages the amount applicable to depreciation and other expenses claimed elsewhere. Generally, you are required to file Form W-2, Wage and Tax Statement, for each employee. See the Instructions for Forms W-2 and W-3. To figure your EIC, use the instructions for Form 1040, lines 64a and 64b. Complete all applicable steps plus Worksheet B. If you are required to file Schedule SE, remember to enter one-half of your self-employment tax in Part 1, line 1d, of Worksheet B. Line 32 At-risk rules. Generally, if you have a Line 30 Business use of your home. You may be able to deduct certain expenses for business use of your home, subject to limitations. You must attach Form 8829 if you claim this deduction. For details, see the Instructions for Form 8829 and Pub. 587. business loss and amounts invested in the business for which you are not at risk, you must complete Form 6198 to figure your allowable loss. The at-risk rules generally limit the amount of loss (including loss on the disposition of assets) you can claim to the amount you could actually lose in the business. Check box 32b if you have amounts invested in this business for which you are not at risk, such as the following. • Nonrecourse loans used to finance the business, to acquire property used in the business, or to acquire the business that are not secured by your own property (other than property used in the business). However, there is an exception for certain nonrecourse financing borrowed by you in connection with holding real property. • Cash, property, or borrowed amounts used in the business (or contributed to the business, or used to acquire the business) that are protected against loss by a guarantee, stop-loss agreement, or other similar arrangement (excluding casualty insurance and insurance against tort liability). • Amounts borrowed for use in the business from a person who has an interest in the business, other than as a creditor, or who is related under section 465(b)(3)(C) to a person (other than you) having such an interest. Figuring your deductible loss. If all amounts are at risk in this business, check box 32a. If you answered “Yes” on line G, enter your loss on line 31. But if you answered “No” on line G or are a qualified joint venture reporting only rental real estate, you may need to complete Form 8582 to figure your allowable loss to enter on line 31. See the Instructions for Form 8582 for details. Line 31 If you have a loss, the amount of loss you can deduct this year may be limited. Go to line 32 before entering your loss on line 31. If you answered “No” on Schedule C, line G, or are a qualified joint venture reporting only rental real estate, also see the Instructions for Form 8582. Enter the net profit or deductible loss here. Combine this amount with any profit or loss from other businesses, and enter the total on both Form 1040, line 12, and Schedule SE, line 2, or on Form 1040NR, line 13. Estates and trusts should enter the total on Form 1041, line 3. Statutory employees and qualified joint ventures reporting only rental real estate income not subject to self-employment tax. family daycare provider, you can use the standard meal and snack rates, instead of actual costs, to compute the deductible cost of meals and snacks provided to eligible children. See Pub. 587 for details, including recordkeeping requirements. Line 25 Deduct utility expenses only for your trade or business. Local telephone service. If you used your home phone for business, do not deduct the base rate (including taxes) of the first phone line into your residence. But you can deduct any additional costs you incurred for business that are more than the base rate of the first phone line. For example, if you had a second line, you can deduct the business percentage of the charges for that line, including the base rate charges. Include your net profit or deductible loss from line 31 with other Schedule C amounts on Form 1040, line 12, or on Form 1040NR, line 13. However, do not report this amount on Schedule SE, line 2. If you were a statutory employee and are required to file Schedule SE because of other self-employment income, see page SE-4 of the instructions for Schedule SE. Rental real estate activity. Unless you are Line 26 Enter the total salaries and wages for the tax year. Do not include salaries and wages deducted elsewhere on your return or amounts paid to yourself. Reduce your deduction by the amounts claimed on: • Form 5884, Work Opportunity Credit, line 2; • Form 5884-A, Credits for Affected Midwestern Disaster Area Employers, line 6; • Form 8844, Empowerment Zone and Renewal Community Employment Credit, line 2; • Form 8845, Indian Employment Credit, line 4; and a qualifying real estate professional, a rental real estate activity is a passive activity, even if you materially participated in the activity. If you have a loss, you may need to file Form 8582 to figure your deductible loss to enter on line 31. See the Instructions for Form 8582. Notary public. Do not enter your net profit from line 31 on Schedule SE, line 2, unless you are required to file Schedule SE because of other self-employment income. See page SE-3 of the instructions for Schedule SE. Community income. If you and your spouse had community income and are filing separate returns, see page SE-2 of the instructions for Schedule SE before figuring self-employment tax. Earned income credit. If you have a net profit on line 31, this amount is earned income and may qualify you for the earned income credit (EIC). If you checked box 32b, first complete Form 6198 to determine the amount of your deductible loss. If you answered “Yes” on line G, enter that amount on line 31. But if you answered “No” on line G or are a qualified joint venture reporting only rental real estate, your loss may be further limited. See the Instructions for Form 8582. If your at-risk amount is zero or less, enter -0- on line 31. Be sure to attach Form 6198 to your return. If you checked box 32b and you do not attach Form 6198, the processing of your tax return may be delayed. Any loss from this business not allowed for 2009 only because of the at-risk rules is treated as a deduction allocable to the business in 2010. For details, see the Instructions for Form 6198 and Pub. 925. C-7 Part III. Cost of Goods Sold Generally, if you engaged in a trade or business in which the production, purchase, or sale of merchandise was an income-producing factor, you must take inventories into account at the beginning and end of your tax year. Exception for certain taxpayers. If you are a qualifying taxpayer or a qualifying small business taxpayer (discussed next), you can account for inventoriable items in the same manner as materials and supplies that are not incidental. Under this accounting method, inventory costs for raw materials purchased for use in producing finished goods and merchandise purchased for resale are deductible in the year the finished goods or merchandise are sold (but not before the year you paid for the raw materials or merchandise, if you are also using the cash method). Enter amounts paid for all raw materials and merchandise during 2009 on line 36. The amount you can deduct for 2009 is figured on line 42. Qualifying taxpayer. This is a taxpayer (a) whose average annual gross receipts for the 3 prior tax years are $1 million or less, and (b) whose business is not a tax shelter (as defined in section 448(d)(3)). Qualifying small business taxpayer. This is a taxpayer (a) whose average annual gross receipts for the 3 prior tax years are $10 million or less, (b) whose business is not a tax shelter (as defined in section 448(d)(3)), and (c) whose principal business activity is not an ineligible activity as explained in Rev. Proc. 2002-28. You can find Rev. Proc. 2002-28 on page 815 of Internal Revenue Bulletin 2002-18 at www.irs.gov/pub/irs-irbs/irb02-18.pdf. Changing accounting methods. File Form 3115 if you are a qualifying taxpayer or qualifying small business taxpayer and want to change to the cash method or to account for inventoriable items as non-incidental materials and supplies. Additional information. For additional guidance on this method of accounting for inventoriable items, see the following. • Pub. 538 discusses both exceptions. • If you are a qualifying taxpayer, see Rev. Proc. 2001-10, on page 272 of Internal Revenue Bulletin 2001-2 at www.irs.gov/pub/irs-irbs/irb01-02.pdf. • If you are a qualifying small business taxpayer, see Rev. Proc. 2002-28, on page 815 of Internal Revenue Bulletin 2002-18 at www.irs.gov/pub/irs-irbs/irb02-18.pdf. Line 35 If you are changing your method of accounting beginning with 2009, refigure last year’s closing inventory using your new method of accounting and enter the result on line 35. If there is a difference between last year’s closing inventory and the refigured amount, attach an explanation and take it into account when figuring your section 481(a) adjustment. For details, see the example on page C-3 under Line F. Line 41 If you account for inventoriable items in the same manner as materials and supplies that are not incidental, enter on line 41 the portion of your raw materials and merchandise purchased for resale that is included on line 40 and was not sold during the year. Part IV. Information on Your Vehicle Line 44b Generally, commuting is travel between your home and a work location. If you converted your vehicle during the year from personal to business use (or vice versa), enter your commuting miles only for the period you drove your vehicle for business. For information on certain travel that is considered a business expense rather than commuting, see the Instructions for Form 2106. • Goodwill and certain other intangibles; or • Certain expenses paid or incurred to create or acquire a musical composition or its copyright. In general, you cannot amortize real property construction period interest and taxes. Special rules apply for allocating interest to real or personal property produced in your trade or business. For a complete list, see the Instructions for Form 4562, Part VI. At-risk loss deduction. Any loss from this business that was not allowed as a deduction last year only because of the at-risk rules is treated as a deduction allocable to this business in 2009. For the loss to be deductible, the amount that is “at risk” must be increased. Bad debts. Include debts and partial debts from sales or services that were included in income and are definitely known to be worthless. If you later collect a debt that you deducted as a bad debt, include it as income in the year collected. For details, see Pub. 535. Business start-up costs. If your business began in 2009, you can elect to deduct up to $5,000 of certain business start-up costs. This limit is reduced (but not below zero) by the amount by which your total start-up costs exceed $50,000. Your remaining start-up costs can be amortized over a 180-month period, beginning with the month the business began. For details, see chapters 7 and 8 of Pub. 535. For amortization that begins in 2009, you must complete and attach Form 4562. Costs of making commercial buildings energy efficient. You may be able to de- Part V. Other Expenses Include all ordinary and necessary business expenses not deducted elsewhere on Schedule C. List the type and amount of each expense separately in the space provided. Enter the total on lines 48 and 27. Do not include the cost of business equipment or furniture, replacements or permanent improvements to property, or personal, living, and family expenses. Do not include charitable contributions. Also, you cannot deduct fines or penalties paid to a government for violating any law. For details on business expenses, see Pub. 535. Amortization. Include amortization in this part. For amortization that begins in 2009, you must complete and attach Form 4562. duct part or all of the cost of modifying existing commercial buildings to make them energy efficient. For details, see section 179D, Notice 2006-52, and Notice 2008-40. Notice 2006-52, 2006-26 I.R.B. 1175, is available at www.irs.gov/irb/2006-26_IRB/ar11.html. Notice 2008-40, 2008-14 I.R.B. 725, is available at www.irs.gov/irb/2008-14_IRB/ar12.html. Deduction for removing barriers to individuals with disabilities and the elderly. You may be able to deduct up to Certain direct and indirect expenses may have to be capitalized or included in inventory. See the instructions for Part II on page C-4. See Pub. 538 for additional information. Line 33 Your inventories can be valued at cost; the lower of cost or market; or any other method approved by the IRS. However, you are required to use cost if you are using the cash method of accounting. ties; • The cost of pollution-control facili- You can elect to amortize such costs as: $15,000 of costs paid or incurred in 2009 to remove architectural or transportation barriers to individuals with disabilities and the elderly. However, you cannot take both a credit (on Form 8826) and a deduction for the same expenditures. Qualified disaster expenses. You can elect to deduct certain expenses you paid or incurred as a result of a federally declared disaster occurring before January 1, 2010. For more information, see chapter 7 of Pub. 535. Film and television production expenses. • Amounts paid for research and experimentation; • Qualified revitalization expenditures; • Amounts paid to acquire, protect, expand, register, or defend trademarks or trade names; C-8 You can elect to deduct costs of certain qualified film and television productions. For details, see Pub. 535. Forestation and reforestation costs. Reforestation costs are generally capital expenditures. However, for each qualified timber property, you can elect to expense up to $10,000 ($5,000 if married filing sep- arately) of qualifying reforestation costs paid or incurred in 2009. You can elect to amortize the remaining costs over 84 months. For amortization that begins in 2009, you must complete and attach Form 4562. The amortization election does not apply to trusts and the expense election does not apply to estates and trusts. For details on reforestation expenses, see chapters 7 and 8 of Pub. 535. Paperwork Reduction Act Notice. We ask You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is approved under OMB control number 1545-1974 and is shown below. Recordkeeping . . . . . . . . . 3 hr., 6 min. Learning about the law or the form . . . . . . . . . . . . . . 1hr., 33 min. Preparing the form . . . . . . 1 hr., 66 min. Copying, assembling, and sending the form to the IRS 58 min. for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed. Principal Business or Professional Activity Codes These codes for the Principal Business or Professional Activity classify sole proprietorships by the type of activity they are engaged in to facilitate the administration of the Internal Revenue Code. These six-digit codes are based on the North American Industry Classification System (NAICS). Select the category that best describes your primary business activity (for example, Real Estate). Then select the activity that best identifies the principal source of your sales or receipts (for example, real estate agent). Now find the six-digit code assigned to this activity (for example, 531210, the code for offices 711510 711100 711300 711210 of real estate agents and brokers) and enter it on Schedule C or C-EZ, line B. Note. If your principal source of income is from farming activities, you should file Schedule F. Accommodation, Food Services, & Drinking Places Accommodation 721310 Rooming & boarding houses 721210 RV (recreational vehicle) parks & recreational camps 721100 Traveler accommodation (including hotels, motels, & bed & breakfast inns) Food Services & Drinking Places 722410 Drinking places (alcoholic beverages) 722110 Full-service restaurants 722210 Limited-service eating places 722300 Special food services (including food service contractors & caterers) Other services to buildings & dwellings 561900 Other support services (including packaging & labeling services, & convention & trade show organizers) Waste Management & Remediation Services 562000 Waste management & remediation services 561790 Independent artists, writers, & performers Performing arts companies Promoters of performing arts, sports, & similar events Spectator sports (including professional sports clubs & racetrack operations) 238990 All other specialty trade contractors Educational services (including schools, colleges, & universities) Educational Services 611000 Finance & Insurance Credit Intermediation & Related Activities 522100 Depository credit intermediation (including commercial banking, savings institutions, & credit unions) 522200 Nondepository credit intermediation (including sales financing & consumer lending) 522300 Activities related to credit intermediation (including loan brokers) Insurance Agents, Brokers, & Related Activities 524210 Insurance agencies & brokerages 524290 Other insurance related activities Securities, Commodity Contracts, & Other Financial Investments & Related Activities 523140 Commodity contracts brokers 523130 Commodity contracts dealers 523110 Investment bankers & securities dealers 523210 Securities & commodity exchanges 523120 Securities brokers 523900 Other financial investment activities (including investment advice) Construction of Buildings 236200 Nonresidential building construction 236100 Residential building construction Heavy and Civil Engineering Construction 237310 Highway, street, & bridge construction 237210 Land subdivision 237100 Utility system construction 237990 Other heavy & civil engineering construction Specialty Trade Contractors 238310 Drywall & insulation contractors 238210 Electrical contractors 238350 Finish carpentry contractors 238330 Flooring contractors 238130 Framing carpentry contractors 238150 Glass & glazing contractors 238140 Masonry contractors 238320 Painting & wall covering contractors 238220 Plumbing, heating & airconditioning contractors 238110 Poured concrete foundation & structure contractors 238160 Roofing contractors 238170 Siding contractors 238910 Site preparation contractors 238120 Structural steel & precast concrete construction contractors 238340 Tile & terrazzo contractors 238290 Other building equipment contractors 238390 Other building finishing contractors 238190 Other foundation, structure, & building exterior contractors Agriculture, Forestry, Hunting, & Fishing 112900 114110 113000 Animal production (including breeding of cats and dogs) Fishing Forestry & logging (including forest nurseries & timber tracts) Hunting & trapping Activities for Agriculture & Administrative & Support and Waste Management & Remediation Services Administrative & Support Services 561430 Business service centers (including private mail centers & copy shops) 561740 Carpet & upholstery cleaning services 561440 Collection agencies 561450 Credit bureaus 561410 Document preparation services 561300 Employment services 561710 Exterminating & pest control services 561210 Facilities support (management) services 561600 Investigation & security services 561720 Janitorial services 561730 Landscaping services 561110 Office administrative services 561420 Telephone call centers (including telephone answering services & telemarketing bureaus) 561500 Travel arrangement & reservation services 561490 Other business support services (including repossession services, court reporting, & stenotype services) 114210 Support Forestry 115210 Support activities for animal production (including farriers) 115110 Support activities for crop production (including cotton ginning, soil preparation, planting, & cultivating) 115310 Support activities for forestry Arts, Entertainment, & Recreation Amusement, Gambling, & Recreation Industries 713100 Amusement parks & arcades 713200 Gambling industries 713900 Other amusement & recreation services (including golf courses, skiing facilities, marinas, fitness centers, bowling centers, skating rinks, miniature golf courses) Museums, Historical Sites, & Similar Institutions 712100 Museums, historical sites, & similar institutions Performing Arts, Spectator Sports, & Related Industries 711410 Agents & managers for artists, athletes, entertainers, & other public figures Health Care & Social Assistance Ambulatory Health Care Services 621610 Home health care services 621510 Medical & diagnostic laboratories 621310 Offices of chiropractors 621210 Offices of dentists 621330 Offices of mental health practitioners (except physicians) C-9 Principal Business or Professional Activity Codes (continued) 621320 621340 Offices of optometrists Offices of physical, occupational & speech therapists, & audiologists 621111 Offices of physicians (except mental health specialists) 621112 Offices of physicians, mental health specialists 621391 Offices of podiatrists 621399 Offices of all other miscellaneous health practitioners 621400 Outpatient care centers 621900 Other ambulatory health care services (including ambulance services, blood, & organ banks) Hospitals 622000 Hospitals Nursing & Residential Care Facilities 623000 Nursing & residential care facilities Social Assistance 624410 Child day care services 624200 Community food & housing, & emergency & other relief services 624100 Individual & family services 624310 Vocational rehabilitation services Chemical Manufacturing 325100 Basic chemical mfg. 325500 Paint, coating, & adhesive mfg. 325300 Pesticide, fertilizer, & other agricultural chemical mfg. 325410 Pharmaceutical & medicine mfg. 325200 Resin, synthetic rubber, & artificial & synthetic fibers & filaments mfg. 325600 Soap, cleaning compound, & toilet preparation mfg. 325900 Other chemical product & preparation mfg. Food Manufacturing 311110 Animal food mfg. 311800 Bakeries & tortilla mfg. 311500 Dairy product mfg. 311400 Fruit & vegetable preserving & speciality food mfg. 311200 Grain & oilseed milling 311610 Animal slaughtering & processing 311710 Seafood product preparation & packaging 311300 Sugar & confectionery product mfg. 311900 Other food mfg. (including coffee, tea, flavorings, & seasonings) Leather & Allied Product Manufacturing 316210 Footwear mfg. (including leather, rubber, & plastics) 316110 Leather & hide tanning & finishing 316990 Other leather & allied product mfg. Nonmetallic Mineral Product Manufacturing 327300 Cement & concrete product mfg. 327100 Clay product & refractory mfg. 327210 Glass & glass product mfg. 327400 Lime & gypsum product mfg. 327900 Other nonmetallic mineral product mfg. Repair & Maintenance 811120 Automotive body, paint, interior, & glass repair 811110 Automotive mechanical & electrical repair & maintenance 811190 Other automotive repair & maintenance (including oil change & lubrication shops & car washes) 811310 Commercial & industrial machinery & equipment (except automotive & electronic) repair & maintenance 811210 Electronic & precision equipment repair & maintenance 811430 Footwear & leather goods repair 811410 Home & garden equipment & appliance repair & maintenance 811420 Reupholstery & furniture repair 811490 Other personal & household goods repair & maintenance 531320 Offices of real estate appraisers 531310 Real estate property managers 531390 Other activities related to real estate Rental & Leasing Services 532100 Automotive equipment rental & leasing 532400 Commercial & industrial machinery & equipment rental & leasing 532210 Consumer electronics & appliances rental 532220 Formal wear & costume rental 532310 General rental centers 532230 Video tape & disc rental 532290 Other consumer goods rental Religious, Grantmaking, Civic, Professional, & Similar Organizations 813000 Religious, grantmaking, civic, professional, & similar organizations Retail Trade Building Material & Garden Equipment & Supplies Dealers 444130 Hardware stores 444110 Home centers 444200 Lawn & garden equipment & supplies stores 444120 Paint & wallpaper stores 444190 Other building materials dealers Clothing & Accessories Stores 448130 Children’s & infants’ clothing stores 448150 Clothing accessories stores 448140 Family clothing stores 448310 Jewelry stores 448320 Luggage & leather goods stores 448110 Men’s clothing stores 448210 Shoe stores 448120 Women’s clothing stores 448190 Other clothing stores Electronic & Appliance Stores 443130 Camera & photographic supplies stores 443120 Computer & software stores 443111 Household appliance stores 443112 Radio, television, & other electronics stores Food & Beverage Stores 445310 Beer, wine, & liquor stores 445220 Fish & seafood markets 445230 Fruit & vegetable markets 445100 Grocery stores (including supermarkets & convenience stores without gas) 445210 Meat markets 445290 Other specialty food stores Furniture & Home Furnishing Stores 442110 Furniture stores 442200 Home furnishings stores Gasoline Stations 447100 Gasoline stations (including convenience stores with gas) General Merchandise Stores 452000 General merchandise stores Health & Personal Care Stores 446120 Cosmetics, beauty supplies, & perfume stores 446130 Optical goods stores 446110 Pharmacies & drug stores 446190 Other health & personal care stores Professional, Scientific, & Technical Services 541100 541211 Legal services Offices of certified public accountants 541214 Payroll services 541213 Tax preparation services 541219 Other accounting services Architectural, Engineering, & Related Services 541310 Architectural services 541350 Building inspection services 541340 Drafting services 541330 Engineering services 541360 Geophysical surveying & mapping services 541320 Landscape architecture services 541370 Surveying & mapping (except geophysical) services 541380 Testing laboratories Computer Systems Design & Related Services 541510 Computer systems design & related services Specialized Design Services 541400 Specialized design services (including interior, industrial, graphic, & fashion design) Other Professional, Scientific, & Technical Services 541800 Advertising & related services 541600 Management, scientific, & technical consulting services 541910 Market research & public opinion polling 541920 Photographic services 541700 Scientific research & development services 541930 Translation & interpretation services 541940 Veterinary services 541990 All other professional, scientific, & technical services Information 511000 Publishing industries (except Internet) Broadcasting (except Internet) & Telecommunications 515000 Broadcasting (except Internet) 517000 Telecommunications & Internet service providers Data Processing Services 518210 Data processing, hosting, & related services 519100 Other information services (including news syndicates & libraries, Internet publishing & broadcasting) Motion Picture & Sound Recording 512100 Motion picture & video industries (except video rental) 512200 Sound recording industries Mining 212110 212200 212300 211110 213110 Coal mining Metal ore mining Nonmetallic mineral mining & quarrying Oil & gas extraction Support activities for mining Manufacturing 315000 312000 334000 335000 332000 337000 333000 339110 322000 324100 326000 331000 323100 313000 314000 336000 321000 339900 Apparel mfg. Beverage & tobacco product mfg. Computer & electronic product mfg. Electrical equipment, appliance, & component mfg. Fabricated metal product mfg. Furniture & related product mfg. Machinery mfg. Medical equipment & supplies mfg. Paper mfg. Petroleum & coal products mfg. Plastics & rubber products mfg. Primary metal mfg. Printing & related support activities Textile mills Textile product mills Transportation equipment mfg. Wood product mfg. Other miscellaneous mfg. Other Services Personal & Laundry Services 812111 Barber shops 812112 Beauty salons 812220 Cemeteries & crematories 812310 Coin-operated laundries & drycleaners 812320 Drycleaning & laundry services (except coin-operated) (including laundry & drycleaning dropoff & pickup sites) 812210 Funeral homes & funeral services 812330 Linen & uniform supply 812113 Nail salons 812930 Parking lots & garages 812910 Pet care (except veterinary) services 812920 Photofinishing 812190 Other personal care services (including diet & weight reducing centers) 812990 All other personal services Real Estate & Rental & Leasing Real Estate 531100 Lessors of real estate (including miniwarehouses & self-storage units) 531210 Offices of real estate agents & brokers C-10 Principal Business or Professional Activity Codes (continued) Motor Vehicle & Parts Dealers 441300 Automotive parts, accessories, & tire stores 441222 Boat dealers 441221 Motorcycle dealers 441110 New car dealers 441210 Recreational vehicle dealers (including motor home & travel trailer dealers) 441120 Used car dealers 441229 All other motor vehicle dealers Sporting Goods, Hobby, Book, & Music Stores 451211 Book stores 451120 Hobby, toy, & game stores 451140 Musical instrument & supplies stores 451212 News dealers & newsstands 451220 Prerecorded tape, compact disc, & record stores 451130 Sewing, needlework, & piece goods stores 451110 Sporting goods stores Miscellaneous Store Retailers 453920 Art dealers 453110 Florists 453220 Gift, novelty, & souvenir stores 453930 Manufactured (mobile) home dealers 453210 Office supplies & stationery stores 453910 Pet & pet supplies stores 453310 Used merchandise stores 453990 All other miscellaneous store retailers (including tobacco, candle, & trophy shops) Nonstore Retailers 454112 Electronic auctions 454111 Electronic shopping 454310 Fuel dealers 454113 Mail-order houses 454210 Vending machine operators 454390 Other direct selling establishments (including door-to-door retailing, frozen food plan providers, party plan merchandisers, & coffee-break service providers) 488000 Support activities for transportation (including motor vehicle towing) Couriers & Messengers 492000 Couriers & messengers Warehousing & Storage Facilities 493100 Warehousing & storage (except leases of miniwarehouses & self-storage units) 423990 Other miscellaneous durable goods Merchant Wholesalers, Nondurable Goods 424300 Apparel, piece goods, & notions 424800 Beer, wine, & distilled alcoholic beverage 424920 Books, periodicals, & newspapers 424600 Chemical & allied products 424210 Drugs & druggists’ sundries 424500 Farm product raw materials 424910 Farm supplies 424930 Flower, nursery stock, & florists’ supplies 424400 Grocery & related products 424950 Paint, varnish, & supplies 424100 Paper & paper products 424700 Petroleum & petroleum products 424940 Tobacco & tobacco products 424990 Other miscellaneous nondurable goods Utilities 221000 Utilities Transportation & Warehousing 481000 485510 484110 484120 485210 486000 482110 487000 485410 484200 485300 485110 483000 485990 Air transportation Charter bus industry General freight trucking, local General freight trucking, long distance Interurban & rural bus transportation Pipeline transportation Rail transportation Scenic & sightseeing transportation School & employee bus transportation Specialized freight trucking (including household moving vans) Taxi & limousine service Urban transit systems Water transportation Other transit & ground passenger transportation Wholesale Trade Merchant Wholesalers, Durable Goods 423600 Electrical & electronic goods 423200 Furniture & home furnishing 423700 Hardware, & plumbing & heating equipment & supplies 423940 Jewelry, watch, precious stone, & precious metals 423300 Lumber & other construction materials 423800 Machinery, equipment, & supplies 423500 Metal & mineral (except petroleum) 423100 Motor vehicle & motor vehicle parts & supplies 423400 Professional & commercial equipment & supplies 423930 Recyclable materials 423910 Sporting & recreational goods & supplies 423920 Toy & hobby goods & supplies Wholesale Electronic Markets and Agents & Brokers 425110 425120 999999 Business to business electronic markets Wholesale trade agents & brokers Unclassified establishments (unable to classify) C-11 Department of the Treasury Internal Revenue Service 2009 Instructions for Schedule D Use Schedule D (Form 1040) to report the following. • The sale or exchange of a capital asset (defined on this page) not reported on another Capital Gains form or schedule. • Gains from involuntary conversions (other than from casualty or theft) of capital assets and Losses not held for business or profit. • Capital gain distributions not reported directly on Form 1040, line 13 (or effectively connected capital gain distributions not reported directly on Form 1040NR, line 14). • Nonbusiness bad debts. Additional information. See Pub. 544 and Pub. 550 for more details. For a comprehensive filled-in example of Schedule D, see Pub. 550. Use Form 4684 to report involuntary conversions of property due to casualty or theft. Use Form 6781 to report gains and losses from section 1256 contracts and straddles. Use Form 8824 to report like-kind exchanges. A like-kind exchange occurs when you exchange business or investment property for property of a like kind. Section references are to the Internal Revenue Code unless otherwise noted. What’s New Sale of your home. Gain from the sale of your main home that is from a period of nonqualified use can no longer be excluded from your income. A period of nonqualified use is any time after 2008 when the property was not used as your main home. See Pub. 523 for details and exceptions. • Certain commodities derivative financial instruments held by a dealer. See section 1221(a)(6). • Certain hedging transactions entered into in the normal course of your trade or business. See section 1221(a)(7). • Supplies regularly used in your trade or business. TIP details. You can elect to treat as capital assets certain musical compositions or copyrights you sold or exchanged. See Pub. 550 for Capital Asset Most property you own and use for personal purposes, pleasure, or investment is a capital asset. For example, your house, furniture, car, stocks, and bonds are capital assets. A capital asset is any property held by you except the following. • Stock in trade or other property included in inventory or held mainly for sale to customers. But see the Tip on this page. • Accounts or notes receivable for services performed in the ordinary course of your trade or business or as an employee, or from the sale of stock in trade or other property held mainly for sale to customers. • Depreciable property used in your trade or business, even if it is fully depreciated. • Real estate used in your trade or business. • Copyrights, literary, musical, or artistic compositions, letters or memoranda, or similar property (a) created by your personal efforts; (b) prepared or produced for you (in the case of letters, memoranda, or similar property); or (c) that you received from someone who created them or for whom they were created, as mentioned in (a) or (b), in a way (such as by gift) that entitled you to the basis of the previous owner. But see the Tip on this page. • U.S. Government publications, including the Congressional Record, that you received from the Government, other than by purchase at the normal sales price, or that you got from someone who had received it in a similar way, if your basis is determined by reference to the previous owner’s basis. Basis and Recordkeeping Basis is the amount of your investment in property for tax purposes. You need to know your basis to figure any gain or loss on the sale or other disposition of the property. You must keep accurate records that show the basis and adjusted basis of your property. Your records should show the purchase price, including commissions; increases to basis, such as the cost of improvements; and decreases to basis, such as depreciation, nondividend distributions on stock, and stock splits. For more information on basis, see page D-7 and these publications. • Pub. 551, Basis of Assets. • Pub. 550, Investment Income and Expenses (Including Capital Gains and Losses). • Pub. 564, Mutual Fund Distributions. If you lost or did not keep records to determine your basis in securities, contact your broker for help. The IRS partners with companies that offer Schedule D software that can import trades from many brokerage firms and accounting software to help you keep track of your adjusted basis in securities. To find out more, go to www.irs.gov/efile. General Instructions Other Forms You May Have To File Use Form 4797 to report the following. 1. The sale or exchange of: a. Property used in a trade or business; b. Depreciable and amortizable property; c. Oil, gas, geothermal, or other mineral property; and d. Section 126 property. 2. The involuntary conversion (other than from casualty or theft) of property used in a trade or business and capital assets held for business or profit. 3. The disposition of noncapital assets other than inventory or property held primarily for sale to customers in the ordinary course of your trade or business. 4. Ordinary loss on the sale, exchange, or worthlessness of small business investment company (section 1242) stock. 5. Ordinary loss on the sale, exchange, or worthlessness of small business (section 1244) stock. 6. Ordinary gain or loss on securities held in connection with your trading business, if you previously made a mark-to-market election. See Traders in Securities on page D-3. Short Term or Long Term Separate your capital gains and losses according to how long you held or owned the property. The holding period for short-term capital gains and losses is 1 year or less. The holding period for long-term capital D-1 Cat. No. 24331I gains and losses is more than 1 year. To figure the holding period, begin counting on the day after you received the property and include the day you disposed of it. If you disposed of property that you acquired by inheritance, report the disposition as a long-term gain or loss, regardless of how long you held the property. A nonbusiness bad debt must be treated as a short-term capital loss. See Pub. 550 for what qualifies as a nonbusiness bad debt and how to enter it on Schedule D. Capital Gain Distributions These distributions are paid by a mutual fund (or other regulated investment company) or real estate investment trust from its net realized long-term capital gains. Distributions of net realized short-term capital gains are not treated as capital gains. Instead, they are included on Form 1099-DIV as ordinary dividends. Enter on line 13 the total capital gain distributions paid to you during the year, regardless of how long you held your investment. This amount is shown in box 2a of Form 1099-DIV. If there is an amount in box 2b, include that amount on line 11 of the Unrecaptured Section 1250 Gain Worksheet on page D-9 if you complete line 19 of Schedule D. If there is an amount in box 2c, see Exclusion of Gain on Qualified Small Business (QSB) Stock on page D-4. If there is an amount in box 2d, include that amount on line 4 of the 28% Rate Gain Worksheet on page D-8 if you complete line 18 of Schedule D. If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on line 13 only the amount that belongs to you. Attach a statement showing the full amount you received and the amount you received as a nominee. See the Instructions for Schedule B for filing requirements for Forms 1099-DIV and 1096. cumstances. In this case, the maximum amount of gain you can exclude is reduced. If your spouse died before the sale or exchange, you can exclude up to $500,000 of gain if: • The sale or exchange is no later than 2 years after your spouse’s death, • Just before your spouse’s death, both spouses met the use requirement of Test 1, at least one spouse met the ownership requirement of Test 1, and both spouses met Test 2, and • You did not remarry before the sale or exchange. You can choose to have the 5-year test period for ownership and use in Test 1 suspended during any period you or your spouse serve outside the United States as a Peace Corps volunteer or serve on qualified official extended duty as a member of the uniformed services or Foreign Service of the United States, as an employee of the intelligence community, or outside the United States as an employee of the Peace Corps. This means you may be able to meet Test 1 even if, because of your service, you did not actually use the home as your main home for at least the required 2 years during the 5-year period ending on the date of sale. You cannot exclude any gain if: • You acquired your home in a like-kind exchange in which all or part of the gain was not recognized, and • You sold or exchanged the home during the 5-year period beginning on the date you acquired it. See Pub. 523 for details, including how to report any taxable gain if: • You (or your spouse if married) used any part of the home for business or rental purposes after May 6, 1997, • There was a period of time after 2008 when the home was not your main home, or • You cannot exclude all of your gain. more than the recapture amount, enter “From Form 4797” in column (a) of line 1 or line 8 of Schedule D, skip columns (b) through (e), and in column (f) enter the excess of the total gain over the recapture amount. Loss from the sale or exchange of a capital asset held for personal use is not deductible. But if you had a loss from the sale or exchange of real estate held for personal use for which you received a Form 1099-S, you must report the transaction on Schedule D even though the loss is not deductible. For example, you have a loss on the sale of a vacation home that is not your main home and you received a Form 1099-S for the transaction. Report the transaction on line 1 or 8, depending on how long you owned the home. Complete columns (a) through (e). Because the loss is not deductible, enter -0- in column (f). Capital Losses You can deduct capital losses up to the amount of your capital gains plus $3,000 ($1,500 if married filing separately). You may be able to use capital losses that exceed this limit in future years. For details, see the instructions for line 21 on page D-9. Be sure to report all of your capital gains and losses (except nondeductible losses) even if you cannot use all of your losses in 2009. Nondeductible Losses Do not deduct a loss from the direct or indirect sale or exchange of property between any of the following. • Members of a family. • A corporation and an individual owning more than 50% of the corporation’s stock (unless the loss is from a distribution in complete liquidation of a corporation). • A grantor and a fiduciary of a trust. • A fiduciary and a beneficiary of the same trust. • A fiduciary and a beneficiary of another trust created by the same grantor. • An executor of an estate and a beneficiary of that estate, unless the sale or exchange was to satisfy a pecuniary bequest (that is, a bequest of a sum of money). • An individual and a tax-exempt organization controlled by the individual or the individual’s family. See Pub. 544 for more details on sales and exchanges between related parties. If you disposed of (a) an asset used in an activity to which the at-risk rules apply or (b) any part of your interest in an activity to which the at-risk rules apply, and you have amounts in the activity for which you are not at risk, see the Instructions for Form 6198. If the loss is allowable under the at-risk rules, it then may be subject to the passive activity rules. See Form 8582 and its instructions for details on reporting capital gains and losses from a passive activity. Sale of Your Home If you sold or exchanged your main home, do not report it on your tax return unless you cannot exclude all of your gain from income. Any gain you cannot exclude is taxable. Generally, if you meet the two following tests, you can exclude up to $250,000 of gain. If both you and your spouse meet these tests and you file a joint return, you can exclude up to $500,000 of gain (but only one spouse needs to meet the ownership requirement in Test 1). Test 1. You owned and used the home as your main home for 2 years or more during the 5-year period ending on the date you sold or exchanged your home. Test 2. You have not excluded gain on the sale or exchange of another main home during the 2-year period ending on the date of the sale or exchange of your home. Even if you do not meet one or both of the above two tests, you still can claim an exclusion if you sold or exchanged the home because of a change in place of employment, health, or certain unforeseen cir- Partnership Interests A sale or other disposition of an interest in a partnership may result in ordinary income, collectibles gain (28% rate gain), or unrecaptured section 1250 gain. For details on 28% rate gain, see the instructions for line 18 on page D-8. For details on unrecaptured section 1250 gain, see the instructions for line 19 that begin on page D-8. Capital Assets Held for Personal Use Generally, gain from the sale or exchange of a capital asset held for personal use is a capital gain. Report it on Schedule D, Part I or Part II. However, if you converted depreciable property to personal use, all or part of the gain on the sale or exchange of that property may have to be recaptured as ordinary income. Use Part III of Form 4797 to figure the amount of ordinary income recapture. The recapture amount is included on line 31 (and line 13) of Form 4797. Do not enter any gain from this property on line 32 of Form 4797. If you are not completing Part III for any other properties, enter “N/A” on line 32. If the total gain is Items for Special Treatment • Transactions by a securities dealer. See section 1236. D-2 • Bonds and other debt instruments. See Pub. 550. • Certain real estate subdivided for sale that may be considered a capital asset. See section 1237. • Gain on the sale of depreciable property to a more than 50% owned entity or to a trust of which you are a beneficiary. See Pub. 544. • Gain on the disposition of stock in an interest charge domestic international sales corporation. See section 995(c). • Gain on the sale or exchange of stock in certain foreign corporations. See section 1248. • Transfer of property to a partnership that would be treated as an investment company if it were incorporated. See Pub. 541. • Sales of stock received under a qualified public utility dividend reinvestment plan. See Pub. 550. • Transfer of appreciated property to a political organization. See section 84. • If you give up your U.S. citizenship after June 16, 2008, you may be treated as having sold all your property for its fair market value on the day before you gave up your citizenship. This also applies to long-term U.S. residents who cease to be lawful permanent residents after June 16, 2008. For details, exceptions, and rules for reporting these deemed sales, see Pub. 519 and Form 8854. • In general, no gain or loss is recognized on the transfer of property from an individual to a spouse or a former spouse if the transfer is incident to a divorce. See Pub. 504. • Amounts received on the retirement of a debt instrument generally are treated as received in exchange for the debt instrument. See Pub. 550. • Any loss on the disposition of converted wetland or highly erodible cropland that is first used for farming after March 1, 1986, is reported as a long-term capital loss on Schedule D, but any gain is reported as ordinary income on Form 4797. • If qualified dividends that you reported on Form 1040, line 9b, or Form 1040NR, line 10b, include extraordinary dividends, any loss on the sale or exchange of the stock is a long-term capital loss to the extent of the extraordinary dividends. An extraordinary dividend is a dividend that equals or exceeds 10% (5% in the case of preferred stock) of your basis in the stock. • Amounts received by shareholders in corporate liquidations. See Pub. 550. • Cash received in lieu of fractional shares of stock as a result of a stock split or stock dividend. See Pub. 550. • Load charges to acquire stock in a regulated investment company (including a mutual fund), which may not be taken into account in determining gain or loss on certain dispositions of the stock if reinvestment rights were exercised. See Pub. 564. • The sale or exchange of S corporation stock or an interest in a trust held for more than 1 year, which may result in col- lectibles gain (28% rate gain). See the instructions for line 18 on page D-8. • Gain or loss on the disposition of securities futures contracts. See Pub. 550. • Gain on the constructive sale of certain appreciated financial positions. See Pub. 550. • Certain constructive ownership transactions. Gain in excess of the gain you would have recognized if you had held a financial asset directly during the term of a derivative contract must be treated as ordinary income. See section 1260. If any portion of the constructive ownership transaction was open in any prior year, you may have to pay interest. See section 1260(b) for details, including how to figure the interest. Include the interest as an additional tax on Form 1040, line 60 (or Form 1040NR, line 57). Write “Section 1260(b) interest” and the amount of the interest to the left of line 60 (or Form 1040NR, line 57). This interest is not deductible. • The sale of publicly traded securities, if you elect to postpone gain by purchasing common stock or a partnership interest in a specialized small business investment company during the 60-day period that began on the date of the sale. See Pub. 550. • The sale of qualified securities, held for at least 3 years, to an employee stock ownership plan or eligible worker-owned cooperative, if you elect to postpone gain by purchasing qualified replacement property. See Pub. 550. • Gain or loss from the disposition of stock or other securities in an investment club. See Pub. 550. Traders in Securities You are a trader in securities if you are engaged in the business of buying and selling securities for your own account. To be engaged in business as a trader in securities, all of the following statements must be true. • You must seek to profit from daily market movements in the prices of securities and not from dividends, interest, or capital appreciation. • Your activity must be substantial. • You must carry on the activity with continuity and regularity. The following facts and circumstances should be considered in determining if your activity is a business. • Typical holding periods for securities bought and sold. • The frequency and dollar amount of your trades during the year. • The extent to which you pursue the activity to produce income for a livelihood. • The amount of time you devote to the activity. You are considered an investor, and not a trader, if your activity does not meet the above definition of a business. It does not matter whether you call yourself a trader or a “day trader.” Like an investor, a trader must report each sale of securities (taking into account commissions and any other costs of acquiring or disposing of the securities) on Schedule D or D-1 or on an attached statement containing all the same information for each sale in a similar format. However, if a trader previously made the mark-to-market election (see below), each transaction is reported in Part II of Form 4797 instead of on Schedules D and D-1. Regardless of whether a trader reports his or her gains and losses on Schedules D and D-1 or Form 4797, the gain or loss from the disposition of securities is not taken into account when figuring net earnings from self-employment on Schedule SE. See the Instructions for Schedule SE for an exception that applies to section 1256 contracts. The limitation on investment interest expense that applies to investors does not apply to interest paid or incurred in a trading business. A trader reports interest expense and other expenses (excluding commissions and other costs of acquiring or disposing of securities) from a trading business on Schedule C (instead of Schedule A). A trader also may hold securities for investment. The rules for investors generally will apply to those securities. Allocate interest and other expenses between your trading business and your investment securities. Wash Sales A wash sale occurs when you sell or otherwise dispose of stock or securities (including a contract or option to acquire or sell stock or securities) at a loss and, within 30 days before or after the sale or disposition, you: 1. Buy substantially identical stock or securities, 2. Acquire substantially identical stock or securities in a fully taxable trade, 3. Enter into a contract or option to acquire substantially identical stock or securities, or 4. Acquire substantially identical stock or securities for your individual retirement arrangement (IRA) or Roth IRA. You cannot deduct losses from wash sales unless the loss was incurred in the ordinary course of your business as a dealer in stock or securities. The basis of the substantially identical property (or contract or option to acquire such property) is its cost increased by the disallowed loss (except in the case of (4) above). For more details on wash sales, see Pub. 550. Report a wash sale transaction on line 1 or 8. Enter the full amount of the (loss) in column (f). Directly below the line on which you reported the loss, enter “Wash Sale” in column (a), and enter as a positive amount in column (f) the amount of the loss not allowed. Mark-To-Market Election for Traders A trader may make an election under section 475(f) to report all gains and losses from securities held in connection with a trading business as ordinary income (or loss), including those from securities held at the end of the year. Securities held at the D-3 end of the year are “marked to market” by treating them as if they were sold (and reacquired) for fair market value on the last business day of the year. Generally, the election must be made by the due date (not including extensions) of the tax return for the year prior to the year for which the election becomes effective. To be effective for 2009, the election must have been made by April 15, 2009. Starting with the year the election becomes effective, a trader reports all gains and losses from securities held in connection with the trading business, including securities held at the end of the year, in Part II of Form 4797. If you previously made the election, see the Instructions for Form 4797. For details on making the mark-to-market election for 2010, see Pub. 550 or Rev. Proc. 99-17, 1999-1 C.B. 503. You can find Rev. Proc. 99-17 on page 52 of Internal Revenue Bulletin 1999-7 at www.irs.gov/pub/irs-irbs/irb99-07.pdf. If you hold securities for investment, you must identify them as such in your records on the day you acquired them (for example, by holding the securities in a separate brokerage account). Securities held for investment are not marked-to-market. Section 1250 Gain Worksheet on page D-9 if you complete line 19 of Schedule D. If there is an amount in box 1c, see Exclusion of Gain on Qualified Small Business (QSB) Stock on this page. If there is an amount in box 1d, include that amount on line 4 of the 28% Rate Gain Worksheet on page D-8 if you complete line 18 of Schedule D. Include on Form 1040, line 70, or Form 1040NR, line 64, the tax paid as shown in box 2 of Form 2439. Also check the box for Form 2439. Add to the basis of your stock the excess of the amount included in income over the amount of the credit for the tax paid. See Pub. 550 for details. If the demutualization transaction does not qualify as a tax-free reorganization, you must recognize a capital gain in an amount equal to the cash and fair market value of the stock received. If you held the equity interest for more than 1 year, report the gain as a long-term capital gain on line 8. If you held the equity interest for 1 year or less, report the gain as a short-term capital gain on line 1. Your holding period for the new stock begins on the day after you received the stock. Exclusion of Gain on Qualified Small Business (QSB) Stock Section 1202 allows for an exclusion of up to 50% of the eligible gain on the sale or exchange of QSB stock. The section 1202 exclusion applies only to QSB stock held for more than 5 years. The exclusion can be up to 60% for certain empowerment zone business stock. See Empowerment Zone Business Stock on page D-5. To be QSB stock, the stock must meet all of the following tests. 1. It must be stock in a C corporation (that is, not S corporation stock). 2. It must have been originally issued after August 10, 1993. 3. As of the date the stock was issued, the corporation was a domestic C corporation with total gross assets of $50 million or less (a) at all times after August 9, 1993, and before the stock was issued, and (b) immediately after the stock was issued. Gross assets include those of any predecessor of the corporation. All corporations that are members of the same parent-subsidiary controlled group are treated as one corporation. 4. You must have acquired the stock at its original issue (either directly or through an underwriter), either in exchange for money or other property or as pay for services (other than as an underwriter) to the corporation. In certain cases, you may meet this test if you acquired the stock from another person who met the test (such as by gift or inheritance) or through a conversion or exchange of QSB stock you held. 5. During substantially all the time you held the stock: a. The corporation was a C corporation, b. At least 80% of the value of the corporation’s assets were used in the active conduct of one or more qualified businesses (defined below), and c. The corporation was not a foreign corporation, DISC, former DISC, regulated investment company, real estate investment trust, REMIC, FASIT, cooperative, or a corporation that has made (or that has a subsidiary that has made) a section 936 election. Installment Sales If you sold property (other than publicly traded stocks or securities) at a gain and you will receive a payment in a tax year after the year of sale, you generally must report the sale on the installment method unless you elect not to. Use Form 6252 to report the sale on the installment method. Also use Form 6252 to report any payment received in 2009 from a sale made in an earlier year that you reported on the installment method. To elect out of the installment method, report the full amount of the gain on Schedule D on a timely filed return (including extensions) for the year of the sale. If your original return was filed on time, you can make the election on an amended return filed no later than 6 months after the due date of your return (excluding extensions). Write “Filed pursuant to section 301.9100-2” at the top of the amended return. Short Sales A short sale is a contract to sell property you borrowed for delivery to a buyer. At a later date, you either buy substantially identical property and deliver it to the lender or deliver property that you held but did not want to transfer at the time of the sale. Usually, your holding period is the amount of time you actually held the property eventually delivered to the lender to close the short sale. However, your gain when closing a short sale is short term if you (a) held substantially identical property for 1 year or less on the date of the short sale, or (b) acquired property substantially identical to the property sold short after the short sale but on or before the date you close the short sale. If you held substantially identical property for more than 1 year on the date of a short sale, any loss realized on the short sale is a long-term capital loss, even if the property used to close the short sale was held 1 year or less. Demutualization of Life Insurance Companies Demutualization of a life insurance company occurs when a mutual life insurance company changes to a stock company. If you were a policyholder or annuitant of the mutual company, you may have received either stock in the stock company or cash in exchange for your equity interest in the mutual company. The basis of your equity interest in the mutual company is considered to be zero. If the demutualization transaction qualifies as a tax-free reorganization, no gain is recognized on the exchange of your equity interest in the mutual company for stock. The company can advise you if the transaction is a tax-free reorganization. Because the basis of your equity interest in the mutual company is considered to be zero, your basis in the stock received is zero. Your holding period for the new stock includes the period you held an equity interest in the mutual company. If you received cash in exchange for your equity interest, you must recognize a capital gain in an amount equal to the cash received. If you held the equity interest for more than 1 year, report the gain as a long-term capital gain on line 8. If you held the equity interest for 1 year or less, report the gain as a short-term capital gain on line 1. Gain or Loss From Options Report on Schedule D gain or loss from the closing or expiration of an option that is not a section 1256 contract but is a capital asset in your hands. If an option you purchased expired, enter the expiration date in column (c) and enter “EXPIRED” in column (d). If an option that was granted (written) expired, enter the expiration date in column (b) and enter “EXPIRED” in column (e). Fill in the other columns as appropriate. See Pub. 550 for details. Undistributed Capital Gains Include on line 11 the amount from box 1a of Form 2439. This represents your share of the undistributed long-term capital gains of the regulated investment company (including a mutual fund) or real estate investment trust. If there is an amount in box 1b, include that amount on line 11 of the Unrecaptured SSBIC. A specialized small business investment company (SSBIC) is treated as having met test 5b. Qualified Business A qualified business is any business that is not one of the following. TIP D-4 • A business involving services performed in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, or brokerage services. • A business whose principal asset is the reputation or skill of one or more employees. • A banking, insurance, financing, leasing, investing, or similar business. • A farming business (including the raising or harvesting of trees). • A business involving the production of products for which percentage depletion can be claimed. • A business of operating a hotel, motel, restaurant, or similar business. For more details about limits and additional requirements that may apply, see section 1202. Empowerment Zone Business Stock You generally can exclude up to 60% of your gain if you meet the following additional requirements. 1. The stock you sold or exchanged was stock in a corporation that qualified as an empowerment zone business during substantially all of the time you held the stock. 2. You acquired the stock after December 21, 2000. Requirement 1 will still be met if the corporation ceased to qualify after the 5-year period that began on the date you acquired the stock. However, the gain that qualifies for the 60% exclusion cannot be more than the gain you would have had if you had sold the stock on the date the corporation ceased to qualify. For more information about empowerment zone businesses, see Pub. 954. line 8, enter the name of the corporation whose stock was sold. In column (f), enter the amount of your allowable exclusion as a loss. If you are completing line 18 of Schedule D, enter as a positive number the amount of your allowable exclusion on line 2 of the 28% Rate Gain Worksheet on page D-8; if you excluded 60% of the gain, enter 2⁄3 of the exclusion. Gain from Form 2439. If you received a Form 2439 with a gain in box 1c, part or all of that gain (which is also included in box 1a) may be eligible for the section 1202 exclusion. In column (a) of line 8, enter the name of the corporation whose stock was sold. In column (f), enter the amount of your allowable exclusion as a loss. If you are completing line 18 of Schedule D, enter as a positive number the amount of your allowable exclusion on line 2 of the 28% Rate Gain Worksheet on page D-8; if you excluded 60% of the gain, enter 2⁄3 of the exclusion. Gain from an installment sale of QSB stock. If all payments are not received in replacement stock. Reduce the basis of the replacement stock by any postponed gain. You must make the election no later than the due date (including extensions) for filing your tax return for the tax year in which the QSB stock was sold. If your original return was filed on time, you can make the election on an amended return filed no later than 6 months after the due date of your return (excluding extensions). Write “Filed pursuant to section 301.9100-2” at the top of the amended return. To make the election, report the entire gain realized on the sale on line 1 or 8. Directly below the line on which you reported the gain, enter in column (a) “Section 1045 rollover,” and enter the amount of the postponed gain as a (loss) in column (f). Rollover of Gain From Empowerment Zone Assets If you sold a qualified empowerment zone asset that you held for more than 1 year, you may be able to elect to postpone part or all of the gain that you would otherwise include on Schedule D. If you make the election, the gain on the sale generally is recognized only to the extent, if any, that the amount realized on the sale exceeds the cost of qualified empowerment zone assets (replacement property) you purchased during the 60-day period beginning on the date of the sale. The following rules apply. • No portion of the cost of the replacement property may be taken into account to the extent the cost is taken into account to exclude gain on a different empowerment zone asset. • The replacement property must qualify as an empowerment zone asset with respect to the same empowerment zone as the asset sold. • You must reduce the basis of the replacement property by the amount of postponed gain. • This election does not apply to any gain (a) treated as ordinary income or (b) attributable to real property, or an intangible asset, that is not an integral part of an enterprise zone business. • The District of Columbia enterprise zone is not treated as an empowerment zone for this purpose. • The election is irrevocable without IRS consent. See Pub. 954 for the definition of empowerment zone and enterprise zone business. You can find out if your business is located within an empowerment zone by using the RC/EZ/EC Address Locator at www.hud.gov/crlocator. Qualified empowerment zone assets are: 1. Tangible property, if: a. You acquired the property after December 21, 2000, b. The original use of the property in the empowerment zone began with you, and c. Substantially all of the use of the property, during substantially all of the the year of sale, a sale of QSB stock that is not traded on an established securities market generally is treated as an installment sale and is reported on Form 6252. Figure the allowable section 1202 exclusion for the year by multiplying the total amount of the exclusion by a fraction, the numerator of which is the amount of eligible gain to be recognized for the tax year and the denominator of which is the total amount of eligible gain. In column (a) of line 8, enter the name of the corporation whose stock was sold. In column (f), enter the amount of your allowable exclusion as a loss. If you are completing line 18 of Schedule D, enter as a positive number the amount of your allowable exclusion on line 2 of the 28% Rate Gain Worksheet on page D-8; if you excluded 60% of the gain, enter 2⁄3 of the exclusion. Alternative minimum tax. You must enter 7% of your allowable exclusion for the year on line 14 of Form 6251. Pass-Through Entities If you held an interest in a pass-through entity (a partnership, S corporation, or mutual fund or other regulated investment company) that sold QSB stock, to qualify for the exclusion you must have held the interest on the date the pass-through entity acquired the QSB stock and at all times thereafter until the stock was sold. Rollover of Gain From QSB Stock If you sold QSB stock (defined on page D-4) that you held for more than 6 months, you can elect to postpone gain if you purchase other QSB stock during the 60-day period that began on the date of the sale. A pass-through entity also can make the election to postpone gain. The benefit of the postponed gain applies to your share of the entity’s postponed gain if you held an interest in the entity for the entire period the entity held the QSB stock. If a pass-through entity sold QSB stock held for more than 6 months and you held an interest in the entity for the entire period the entity held the stock, you also can elect to postpone gain if you, rather than the pass-through entity, purchase the replacement QSB stock within the 60-day period. If you were a partner in a partnership that sold or bought QSB stock, see box 11 of the Schedule K-1 (Form 1065) sent to you by the partnership and Regulations section 1.1045-1. You must recognize gain to the extent the sale proceeds exceed the cost of the How To Report Report on line 8 the entire gain realized on the sale of QSB stock. Complete all columns as indicated. Directly below the line on which you reported the gain, enter in column (a) “Section 1202 exclusion” and enter as a loss in column (f) the amount of the allowable exclusion. If you are completing line 18 of Schedule D, enter as a positive number the amount of your allowable exclusion on line 2 of the 28% Rate Gain Worksheet on page D-8; if you excluded 60% of the gain, enter 2⁄3 of the exclusion. Gain from Form 1099-DIV. If you received a Form 1099-DIV with a gain in box 2c, part or all of that gain (which is also included in box 2a) may be eligible for the section 1202 exclusion. In column (a) of D-5 time that you held it, was in your enterprise zone business; and 2. Stock in a domestic corporation or a capital or profits interest in a domestic partnership, if: a. You acquired the stock or partnership interest after December 21, 2000, solely in exchange for cash, from the corporation at its original issue (directly or through an underwriter) or from the partnership; b. The business was an enterprise zone business (or a new business being organized as an enterprise zone business) as of the time you acquired the stock or partnership interest; and c. The business qualified as an enterprise zone business during substantially all of the time you held the stock or partnership interest. How to report. Report the entire gain real- erwise would without regard to the exclusion. On Schedule D, line 8, enter “DC Zone Asset” in column (a) and enter as a loss in column (f) the amount of the allowable exclusion. If you are reporting the sale directly on Schedule D, line 8, use the line directly below the line on which you are reporting the sale. Exclusion of Gain From Qualified Community Assets If you sold or exchanged a qualified community asset that you acquired after 2001 and held for more than 5 years, you may be able to exclude the qualified capital gain that you would otherwise include on Schedule D. The exclusion applies to an interest in, or property of, certain renewal community businesses. Qualified community asset. A qualified ized from the sale as you otherwise would without regard to the election. On Schedule D, line 8, enter “Section 1397B Rollover” in column (a) and enter as a loss in column (f) the amount of gain included on Schedule D that you are electing to postpone. If you are reporting the sale directly on Schedule D, line 8, use the line directly below the line on which you are reporting the sale. See section 1397B for more details. community asset is any of the following. • Qualified community stock. • Qualified community partnership interest. • Qualified community business property. Qualified capital gain. Qualified capital You must enter the details of each transaction on a separate line of Schedule D. If you have more than five transactions to report on line 1 or line 8, you can report the additional transactions on Schedule D-1. Instead of reporting your transactions on Schedules D and D-1, you can report them on an attached statement containing all the same information as Schedules D and D-1 and in a similar format. Use as many Schedules D-1 or attached statements as you need. Enter on Schedule D, lines 2 and 9, the combined totals from all your Schedules D-1 or the attached statements. Do not enter “available upon request” and summary totals in lieu of reporting the details of each transaction on Schedules D and D-1 or attached statements. If you e-file your return but elect not to include your transactions on the electronic short-term capital gain (or loss) or long-term capital gain (or loss) records, you must attach Schedule D-1 (or a statement with the same information) to Form 8453 and mail the forms to the IRS. Exclusion of Gain From DC Zone Assets If you sold or exchanged a District of Columbia Enterprise Zone (DC Zone) asset that you acquired after 1997 and before 2010 and held for more than 5 years, you may be able to exclude the amount of qualified capital gain that you would otherwise include on Schedule D. The exclusion applies to an interest in, or property of, certain businesses operating in the District of Columbia. DC Zone asset. A DC Zone asset is any of the following. • DC Zone business stock. • DC Zone partnership interest. • DC Zone business property. Qualified capital gain. Qualified capital gain is any gain recognized on the sale or exchange of a DC Zone asset that is a capital asset or property used in a trade or business. It does not include any of the following gains. • Gain treated as ordinary income under section 1245. • Section 1250 gain figured as if section 1250 applied to all depreciation rather than the additional depreciation. • Gain attributable to real property, or an intangible asset, that is not an integral part of a DC Zone business. • Gain from a related-party transaction. See Sales and Exchanges Between Related Persons in chapter 2 of Pub. 544. See Pub. 954 and section 1400B for more details on DC Zone assets and special rules. How to report. Report the entire gain realized from the sale or exchange as you oth- gain is any gain recognized on the sale or exchange of a qualified community asset but does not include any of the following. • Gain treated as ordinary income under section 1245. • Section 1250 gain figured as if section 1250 applied to all depreciation rather than the additional depreciation. • Gain attributable to real property, or an intangible asset, that is not an integral part of a qualified community business. • Gain from a related-party transaction. See Sales and Exchanges Between Related Persons in chapter 2 of Pub. 544. See Pub. 954 and section 1400F for more details and special rules. How to report. Report the entire gain realized from the sale or exchange as you otherwise would without regard to the exclusion. On Schedule D, line 8, enter “Qualified Community Asset” in column (a) and enter as a loss in column (f) the amount of the allowable exclusion. If you are reporting the sale directly on Schedule D, line 8, use the line directly below the line on which you are reporting the sale. Specific Instructions Lines 1 and 8 Enter all sales and exchanges of capital assets, including stocks, bonds, etc., and real estate (if not reported on Form 4684, 4797, 6252, 6781, or 8824). But do not report the sale or exchange of your main home unless required (see page D-2). Include these transactions even if you did not receive a Form 1099-B or 1099-S (or substitute statement) for the transaction. You can use stock ticker symbols or abbreviations to describe the property as long as they are based on the descriptions of the property as shown on Form 1099-B or 1099-S (or substitute statement). Add the following amounts reported to you for 2009 on Forms 1099-B and 1099-S (or substitute statements) that you are not reporting on another form or schedule included with your return: (a) proceeds from transactions involving stocks, bonds, and other securities; and (b) gross proceeds from real estate transactions (other than the sale of your main home if you are not required to report it). If this total is more than the total of lines 3 and 10, attach an explanation of the difference (for example, you were the nominee for the actual owner of the property). Column (b) —Date Acquired Enter in this column the date you acquired the asset. Use the trade date for stocks and bonds traded on an exchange or over-the-counter market. For stock or other property sold short, enter the date the stock or property was delivered to the broker or lender to close the short sale. The date acquired for an asset you held on January 1, 2001, for which you made an election to recognize any gain in a deemed sale is the date of the deemed sale and reacquisition. If you disposed of property that you acquired by inheritance, report the gain or (loss) on line 8 and enter “INHERITED” in column (b) instead of the date you acquired the property. If you sold a block of stock (or similar property) that you acquired through several different purchases, you may report the sale on one line and enter “VARIOUS” in column (b). However, you still must report the short-term gain or (loss) on the sale in Part I and the long-term gain or (loss) in Part II. Column (c) —Date Sold Enter in this column the date you sold the asset. Use the trade date for stocks and bonds traded on an exchange or over-the-counter market. For stock or other property sold short, enter the date you sold the stock or property you borrowed to open the short sale transaction. D-6 Column (d) —Sales Price Enter in this column either the gross sales price or the net sales price from the sale. If you sold stocks or bonds and you received a Form 1099-B (or substitute statement) from your broker that shows gross sales price, enter that amount in column (d). But if Form 1099-B (or substitute statement) indicates that gross proceeds minus commissions and option premiums were reported to the IRS, enter that net amount in column (d). If you enter the net amount in column (d), do not include the commissions and option premiums from the sale in column (e). You should not have received a Form 1099-B (or substitute statement) for a transaction merely representing the return of your original investment in a nontransferable obligation, such as a savings bond or a certificate of deposit. But if you did, report the amount shown on Form 1099-B (or substitute statement) in both columns (d) and (e). amortization, and depletion. If you inherited the property, got it as a gift, or received it in a tax-free exchange, involuntary conversion, or “wash sale” of stock, you may not be able to use the actual cost as the basis. If you do not use the actual cost, attach an explanation of your basis. If you sold stock, adjust your basis by subtracting all the nondividend distributions you received before the sale. Also adjust your basis for any stock splits. See Pub. 550 for details. If you elected to recognize gain on an asset held on January 1, 2001, your basis in the asset is its closing market price or fair market value, whichever applies, on the date of the deemed sale and reacquisition, whether the deemed sale resulted in a gain or an unallowed loss. You may elect to use an average basis for all shares of a mutual fund (or other regulated investment company) if you acquired the shares at various times and prices and you left the shares on deposit in an account handled by a custodian or agent who acquired or redeemed those shares. If you are reporting an average basis, include “AVGB” in column (a) of Schedule D. For details on making the election and how to figure average basis, see Pub. 564. The basis of property acquired by gift is generally the basis of the property in the hands of the donor. The basis of property acquired from a decedent is generally the fair market value at the date of death. See Pub. 551 for details. Increase the cost or other basis of an original issue discount (OID) debt instrument by the amount of OID that has been included in gross income for that instrument. See Pub. 550 for details. If a charitable contribution deduction is allowed because of a bargain sale of property to a charitable organization, the adjusted basis for purposes of determining gain from the sale is the amount that has the same ratio to the adjusted basis as the amount realized has to the fair market value. See Pub. 544 for details. Increase your cost or other basis by any expense of sale, such as broker’s fees, commissions, state and local transfer taxes, and option premiums, before making an entry in column (e), unless you reported the net sales price in column (d). For more details, see Pub. 551. Be sure to add all sales price entries on lines 1 and 8, column (d), to amounts on lines 2 and 9, column (d). Enter the totals on lines 3 and 10. Column (e) —Cost or Other Basis In general, the cost or other basis is the cost of the property plus purchase commissions and improvements, minus depreciation, Column (f) —Gain or (Loss) You must make a separate entry in this column for each transaction reported on lines 1 and 8 and any other line(s) that applies to you. For lines 1 and 8, subtract the amount in column (e) from the amount in column (d). Enter negative amounts in parentheses. Capital Loss Carryover Worksheet—Lines 6 and 14 Keep for Your Records Use this worksheet to figure your capital loss carryovers from 2008 to 2009 if your 2008 Schedule D, line 21, is a loss and (a) that loss is a smaller loss than the loss on your 2008 Schedule D, line 16, or (b) the amount on your 2008 Form 1040, line 41 (or your 2008 Form 1040NR, line 38, if applicable), reduced by any amount on your 2008 Form 8914, line 2, is less than zero. Otherwise, you do not have any carryovers. 1. Enter the amount from your 2008 Form 1040, line 41, or your 2008 Form 1040NR, line 38. If a loss, enclose the amount in parentheses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Did you file Form 8914 (to claim an exemption amount for housing a Midwestern displaced individual) for 2008? No. Enter -0Yes. Enter the amount from your 2008 Form 8914, line 2 . ............... 1. } 2. 3. 4. 5. 6. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Subtract line 2 from line 1. If the result is less than zero, enclose it in parentheses . . . . . . . . . . . . . . . Enter the loss from your 2008 Schedule D, line 21, as a positive amount . . . . . . . . . . . . . . . . . . . . . . Combine lines 3 and 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enter the smaller of line 4 or line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If line 7 of your 2008 Schedule D is a loss, go to line 7; otherwise, enter -0- on line 7 and go to line 11. Enter the loss from your 2008 Schedule D, line 7, as a positive amount . . . . . . . . . . . . . . . . . . . . . . . Enter any gain from your 2008 Schedule D, line 15. If a loss, enter -0- . . . 8. Add lines 6 and 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Short-term capital loss carryover for 2009. Subtract line 9 from line 7. If zero or less, enter -0-. If more than zero, also enter this amount on Schedule D, line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If line 15 of your 2008 Schedule D is a loss, go to line 11; otherwise, skip lines 11 through 15. Enter the loss from your 2008 Schedule D, line 15, as a positive amount . . . . . . . . . . . . . . . . . . . . . . Enter any gain from your 2008 Schedule D, line 7. If a loss, enter -0- . . . . 12. Subtract line 7 from line 6. If zero or less, enter -0- . . . . . . . . . . . . . . . . . 13. Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Long-term capital loss carryover for 2009. Subtract line 14 from line 11. If zero or less, enter -0-. If more than zero, also enter this amount on Schedule D, line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. 9. 10. 11. 14. 15. D-7 Line 18 If you checked “Yes” on line 17, complete the worksheet below if either of the following apply for 2009. • You reported in Part II a section 1202 exclusion from the eligible gain on qualified small business stock (see page D-4). • You reported in Part II a collectibles gain or (loss). A collectibles gain or (loss) is any long-term gain or deductible long-term loss from the sale or exchange of a collectible that is a capital asset. Collectibles include works of art, rugs, antiques, metals (such as gold, silver, and platinum bullion), gems, stamps, coins, alcoholic beverages, and certain other tangible property. Include on the worksheet any gain (but not loss) from the sale or exchange of an interest in a partnership, S corporation, or trust held for more than 1 year and attributable to unrealized appreciation of collectibles. For details, see Regulations section 1.1(h)-1. Also, attach the statement required under Regulations section 1.1(h)-1(e). • You reported a long-term capital gain from the sale or exchange of an interest in a partnership that owned section 1250 property. Instructions for the Unrecaptured Section 1250 Gain Worksheet Lines 1 through 3. If you had more than one property described on line 1, complete lines 1 through 3 for each property on a separate worksheet. Enter the total of the line 3 amounts for all properties on line 3 and go to line 4. Line 4. To figure the amount to enter on Line 19 If you checked “Yes” on line 17, complete the worksheet on page D-9 if any of the following apply for 2009. • You sold or otherwise disposed of section 1250 property (generally, real property that you depreciated) held more than 1 year. • You received installment payments for section 1250 property held more than 1 year for which you are reporting gain on the installment method. • You received a Schedule K-1 from an estate or trust, partnership, or S corporation that shows “unrecaptured section 1250 gain.” • You received a Form 1099-DIV or Form 2439 from a real estate investment trust or regulated investment company (including a mutual fund) that reports “unrecaptured section 1250 gain.” line 4, follow the steps below for each installment sale of trade or business property held more than 1 year. Step 1. Figure the smaller of (a) the depreciation allowed or allowable, or (b) the total gain for the sale. This is the smaller of line 22 or line 24 of your 2009 Form 4797 (or the comparable lines of Form 4797 for the year of sale) for the property. Step 2. Reduce the amount figured in step 1 by any section 1250 ordinary income recapture for the sale. This is the amount from line 26g of your 2009 Form 4797 (or the comparable line of Form 4797 for the year of sale) for the property. The result is your total unrecaptured section 1250 gain that must be allocated to the installment payments received from the sale. Step 3. Generally, the amount of section 1231 gain on each installment payment is treated as unrecaptured section 1250 gain until the total unrecaptured section 1250 gain figured in step 2 has been used in full. Figure the amount of gain treated as unrecaptured section 1250 gain for installment payments received in 2009 as the smaller of (a) the amount from line 26 or line 37 of your 2009 Form 6252, whichever applies, or (b) the amount of unrecaptured section 1250 gain remaining to be reported. This amount is generally the total unrecaptured section 1250 gain for the sale reduced by all gain reported in prior years (excluding section 1250 ordinary income recapture). However, if you chose not to treat all of the gain from payments received after May 6, 1997, and before August 24, 1999, as unre- captured section 1250 gain, use only the amount you chose to treat as unrecaptured section 1250 gain for those payments to reduce the total unrecaptured section 1250 gain remaining to be reported for the sale. Include this amount on line 4. Line 10. Include on line 10 your share of the partnership’s unrecaptured section 1250 gain that would result if the partnership had transferred all of its section 1250 property in a fully taxable transaction immediately before you sold or exchanged your interest in that partnership. If you recognized less than all of the realized gain, the partnership will be treated as having transferred only a proportionate amount of each section 1250 property. For details, see Regulations section 1.1(h)-1. Also attach the statement required under Regulations section 1.1(h)-1(e). Line 12. An example of an amount to include on line 12 is unrecaptured section 1250 gain from the sale of a vacation home you previously used as a rental property but converted to personal use prior to the sale. To figure the amount to enter on line 12, follow the applicable instructions below. Installment sales. To figure the amount to include on line 12, follow the steps below for each installment sale of property held more than 1 year for which you did not make an entry in Part I of your Form 4797 for the year of sale. • Step 1. Figure the smaller of (a) the depreciation allowed or allowable, or (b) the total gain for the sale. This is the smaller of line 22 or line 24 of your 2009 Form 4797 (or the comparable lines of Form 4797 for the year of sale) for the property. • Step 2. Reduce the amount figured in step 1 by any section 1250 ordinary income recapture for the sale. This is the amount from line 26g of your 2009 Form 4797 (or the comparable line of Form 4797 for the year of sale) for the property. The result is your total unrecaptured section 1250 gain that must be allocated to the installment payments received from the sale. • Step 3. Generally, the amount of capital gain on each installment payment is 28% Rate Gain Worksheet—Line 18 Keep for Your Records 1. 1. Enter the total of all collectibles gain or (loss) from items you reported on line 8, column (f), of Schedules D and D-1 2. Enter as a positive number the amount of any section 1202 exclusion you reported on line 8, column (f), of Schedules D and D-1, for which you excluded 50% of the gain, plus 2⁄3 of any section 1202 exclusion you reported on line 8, column (f), of Schedules D and D-1, for which you excluded 60% of the gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Enter the total of all collectibles gain or (loss) from Form 4684, line 4 (but only if Form 4684, line 15, is more than zero); Form 6252; Form 6781, Part II; and Form 8824 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Enter the total of any collectibles gain reported to you on: • Form 1099-DIV, box 2d; ................... • Form 2439, box 1d; and • Schedule K-1 from a partnership, S corporation, estate, or trust. 5. Enter your long-term capital loss carryovers from Schedule D, line 14, and Schedule K-1 (Form 1041), box 11, code C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. If Schedule D, line 7, is a (loss), enter that (loss) here. Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Combine lines 1 through 6. If zero or less, enter -0-. If more than zero, also enter this amount on Schedule D, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. 4. } . . . 5. ( 6. ( 7. ) ) D-8 treated as unrecaptured section 1250 gain until the total unrecaptured section 1250 gain figured in step 2 has been used in full. Figure the amount of gain treated as unrecaptured section 1250 gain for installment payments received in 2009 as the smaller of (a) the amount from line 26 or line 37 of your 2009 Form 6252, whichever applies, or (b) the amount of unrecaptured section 1250 gain remaining to be reported. This amount is generally the total unrecaptured section 1250 gain for the sale reduced by all gain reported in prior years (excluding section 1250 ordinary income recapture). However, if you chose not to treat all of the gain from payments received after May 6, 1997, and before August 24, 1999, as unrecaptured section 1250 gain, use only the amount you chose to treat as unrecaptured section 1250 gain for those payments to reduce the total unrecaptured section 1250 gain remaining to be reported for the sale. Include this amount on line 12. Other sales or dispositions of section 1250 property. For each sale of property held more than 1 year (for which you did not make an entry in Part I of Form 4797), figure the smaller of (a) the depreciation allowed or allowable, or (b) the total gain for the sale. This is the smaller of line 22 or line 24 of Form 4797 for the property. Next, reduce that amount by any section 1250 ordinary income recapture for the sale. This is the amount from line 26g of Form 4797 for the property. The result is the total unrecaptured section 1250 gain for the sale. Include this amount on line 12. • The amount on Form 1040, line 41 (or Form 1040NR, line 38, if applicable), reduced by any amount on line 6 of Form 8914 (relating to an exemption for housing a Midwestern displaced individual), is less than zero. To figure any capital loss carryover to 2010, you will use the Capital Loss Carryover Worksheet in the 2010 Instructions for Schedule D. If you want to figure your carryover to 2010 now, see Pub. 550. TIP You will need a copy of your 2009 Form 1040 and Schedule D to figure your capital loss carryover to 2010. Line 21 You have a capital loss carryover from 2009 to 2010 if you have a loss on line 16 and either: • That loss is more than the loss on line 21, or Unrecaptured Section 1250 Gain Worksheet—Line 19 If you are not reporting a gain on Form 4797, line 7, skip lines 1 through 9 and go to line 10. Keep for Your Records 1. If you have a section 1250 property in Part III of Form 4797 for which you made an entry in Part I of Form 4797 (but not on Form 6252), enter the smaller of line 22 or line 24 of Form 4797 for that property. If you did not have any such property, go to line 4. If you had more than one such property, see instructions . . . . . . . . . . 2. Enter the amount from Form 4797, line 26g, for the property for which you made an entry on line 1 . . . . . . . . 3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Enter the total unrecaptured section 1250 gain included on line 26 or line 37 of Form(s) 6252 from installment sales of trade or business property held more than 1 year (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Enter the total of any amounts reported to you on a Schedule K-1 from a partnership or an S corporation as “unrecaptured section 1250 gain” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. Add lines 3 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Enter the smaller of line 6 or the gain from Form 4797, line 7 . . . . . . . . . . . . . . . . . . . 7. 8. Enter the amount, if any, from Form 4797, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. Subtract line 8 from line 7. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Enter the amount of any gain from the sale or exchange of an interest in a partnership attributable to unrecaptured section 1250 gain (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. Enter the total of any amounts reported to you on a Schedule K-1, Form 1099-DIV, or Form 2439 as “unrecaptured section 1250 gain” from an estate, trust, real estate investment trust, or mutual fund (or other regulated investment company) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. Enter the total of any unrecaptured section 1250 gain from sales (including installment sales) or other dispositions of section 1250 property held more than 1 year for which you did not make an entry in Part I of Form 4797 for the year of sale (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. Add lines 9 through 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. If you had any section 1202 gain or collectibles gain or (loss), enter the total of lines 1 through 4 of the 28% Rate Gain Worksheet on page D-8. Otherwise, enter -0- . . . . . . 14. 15. Enter the (loss), if any, from Schedule D, line 7. If Schedule D, line 7, is zero or a gain, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. ( ) 16. Enter your long-term capital loss carryovers from Schedule D, line 14, and Schedule K-1 (Form 1041), box 11, code C* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. ( ) 17. Combine lines 14 through 16. If the result is a (loss), enter it as a positive amount. If the result is zero or a gain, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. Unrecaptured section 1250 gain. Subtract line 17 from line 13. If zero or less, enter -0-. If more than zero, enter the result here and on Schedule D, line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . *If you are filing Form 2555 or 2555-EZ (relating to foreign earned income), see the footnote in the Foreign Earned Income Tax Worksheet on page 38 of the Form 1040 instructions before completing this line. 1. 2. 3. 4. 5. 6. 9. 10. 11. 12. 13. 17. 18. D-9 Schedule D Tax Worksheet Keep for Your Records Complete this worksheet only if line 18 or line 19 of Schedule D is more than zero. Otherwise, complete the Qualified Dividends and Capital Gain Tax Worksheet on page 39 of the Instructions for Form 1040 (or in the Instructions for Form 1040NR) to figure your tax. Exception: Do not use the Qualified Dividends and Capital Gain Tax Worksheet or this worksheet to figure your tax if: • Line 15 or line 16 of Schedule D is zero or less and you have no qualified dividends on Form 1040, line 9b (or Form 1040NR, line 10b); or • Form 1040, line 43 (or Form 1040NR, line 40) is zero or less. Instead, see the instructions for Form 1040, line 44 (or Form 1040NR, line 41). 1. Enter your taxable income from Form 1040, line 43 (or Form 1040NR, line 40). (However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned income), enter instead the amount from line 3 of the Foreign Earned Income Tax Worksheet on page 38 of the Form 1040 instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Enter your qualified dividends from Form 1040, line 9b (or Form 1040NR, line 10b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Enter the amount from Form 4952 (used to figure investment interest expense deduction), line 4g . . . . . . . . . . . . . . . . 3. 4. Enter the amount from Form 4952, line 4e* 4. 5. Subtract line 4 from line 3. If zero or less, enter -0- . . . . . . . . . . 5. 6. Subtract line 5 from line 2. If zero or less, enter -0-** . . . . . . . . . . . . . . . . . . . . . . 6. 7. Enter the smaller of line 15 or line 16 of Schedule D . . . . . . . . 7. 8. Enter the smaller of line 3 or line 4 . . . . . . . . . . . . . . . . . . . 8. 9. Subtract line 8 from line 7. If zero or less, enter -0-** . . . . . . . . . . . . . . . . . . . . . . 9. 10. Add lines 6 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 11. Add lines 18 and 19 of Schedule D** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. 12. Enter the smaller of line 9 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. 13. Subtract line 12 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. Subtract line 13 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. Enter the smaller of: • The amount on line 1 or • $33,950 if single or married filing separately; . . . . . . . . . 15. $67,900 if married filing jointly or qualifying widow(er); or $45,500 if head of household 16. Enter the smaller of line 14 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. 17. Subtract line 10 from line 1. If zero or less, enter -0- . . . . . . . . . 17. 18. Enter the larger of line 16 or line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. If lines 15 and 16 are the same, skip line 19 and go to line 20. Otherwise, go to line 19. 19. Subtract line 16 from line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. If lines 1 and 15 are the same, skip lines 20 through 32 and go to line 33. Otherwise, go to line 20. 20. Enter the smaller of line 1 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. 21. Enter the amount from line 19 (if line 19 is blank, enter -0-) . . . . . . . . . . . . . . . . . . 21. 22. Subtract line 21 from line 20. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22. 23. Multiply line 22 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If Schedule D, line 19, is zero or blank, skip lines 24 through 29 and go to line 30. Otherwise, go to line 24. 24. Enter the smaller of line 9 above or Schedule D, line 19 . . . . . . . . . . . . . . . . . . . . 24. 25. Add lines 10 and 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25. 26. Enter the amount from line 1 above . . . . . . . . . . . . . . . . . . . . 26. 27. Subtract line 26 from line 25. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 27. 28. Subtract line 27 from line 24. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28. 29. Multiply line 28 by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If Schedule D, line 18, is zero or blank, skip lines 30 through 32 and go to line 33. Otherwise, go to line 30. 30. Add lines 18, 19, 22, and 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30. 31. Subtract line 30 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31. 32. Multiply line 31 by 28% (.28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33. Figure the tax on the amount on line 18. Use the Tax Table or Tax Computation Worksheet, whichever applies . . . . . . . . . . . . . 34. Add lines 23, 29, 32, and 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35. Figure the tax on the amount on line 1. Use the Tax Table or Tax Computation Worksheet, whichever applies . . . . . . . . . . . . . . 36. Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 34 or line 35. Also include this amount on Form 1040, line 44 (or Form 1040NR, line 41). (If you are filing Form 2555 or 2555-EZ, do not enter this amount on Form 1040, line 44. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet in the Form 1040 instructions) . . . 1. 13. 14. } 23. 29. 32. 33. 34. 35. 36. *If applicable, enter instead the smaller amount you entered on the dotted line next to line 4e of Form 4952. **If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet on page 38 of the Form 1040 instructions before completing this line. D-10 Department of the Treasury Internal Revenue Service 2009 Instructions for Schedule E (Form 1040) Use Schedule E (Form 1040) to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs. Supplemental You can attach your own schedule(s) to report income or loss from any of these sources. Use the same format as on Schedule E. Income and Enter separately on Schedule E the total income and the total loss for each part. Enclose loss figures in (parentheses). Loss Section references are to the Internal Revenue Code unless otherwise noted. • Form 8910 to claim a credit for placing a new alternative motor vehicle in service for business use. Single-member limited liability company (LLC). Generally, a single-member do- General Instructions Other Schedules and Forms You May Have To File • Schedule A to deduct interest, taxes, and casualty losses not related to your business. • Form 3520 to report certain transactions with foreign trusts and receipt of certain large gifts or bequests from certain foreign persons. • Form 4562 to claim depreciation (including the special allowance) on assets placed in service in 2009, to claim amortization that began in 2009, to make an election under section 179 to expense certain property, or to report information on listed property. • Form 4684 to report a casualty or theft gain or loss involving property used in your trade or business or income-producing property. • Form 4797 to report sales, exchanges, and involuntary conversions (not from a casualty or theft) of trade or business property. • Form 6198 to figure your allowable loss from an at-risk activity. • Form 8082 to notify the IRS of any inconsistent tax treatment for an item on your return. • Form 8582 to figure your amount of allowable passive activity loss. • Form 8824 to report like-kind exchanges. • Form 8826 to claim a credit for expenditures to improve access to your business for individuals with disabilities. • Form 8873 to figure your extraterritorial income exclusion. mestic LLC is not treated as a separate entity for federal income tax purposes. If you are the sole member of a domestic LLC, file Schedule E (or Schedule C, C-EZ, or F, if applicable). However, you can elect to treat a domestic LLC as a corporation. See Form 8832 for details on the election and the tax treatment of a foreign LLC. Information returns. You may have to file information returns for wages paid to employees, certain payments of fees and other nonemployee compensation, interest, rents, royalties, real estate transactions, annuities, and pensions. You generally use Form 1099-MISC, Miscellaneous Income, to report rents and payments of fees and other nonemployee compensation. For details, see the 2009 General Instructions for Forms 1099, 1098, 3921, 3922, 5498, and W-2G. • Certain transactions for which you or a related party have contractual protection against disallowance of the tax benefits. • Certain transactions resulting in a loss of at least $2 million in any single tax year or $4 million in any combination of tax years. (At least $50,000 for a single tax year if the loss arose from a foreign currency transaction defined in section 988(c)(1), whether or not the loss flows through from an S corporation or partnership.) • Certain transactions of interest entered into after November 1, 2006, that are the same or substantially similar to transactions that the IRS has identified by notice, regulation, or other form of published guidance as transactions of interest. See the Instructions for Form 8886 for more details. At-Risk Rules Generally, you must complete Form 6198 to figure your allowable loss if you have: • A loss from an activity carried on as a trade or business or for the production of income, and • Amounts in the activity for which you are not at risk. The at-risk rules generally limit the amount of loss (including loss on the disposition of assets) you can claim to the amount you could actually lose in the activity. However, the at-risk rules do not apply to losses from an activity of holding real property placed in service before 1987. They also do not apply to losses from your interest acquired before 1987 in a pass-through entity that is engaged in such activity. The activity of holding mineral property does not qualify for this exception. In most cases, you are not at risk for amounts such as the following. • Nonrecourse loans used to finance the activity, to acquire property used in the activity, or to acquire your interest in the activity that are not secured by your own property (other than property used in the activity). However, there is an exception for certain nonrecourse financing borrowed If you received cash of more than $10,000 in one or more related transactions in your trade or business, you may have to file Form 8300. For details, see Pub. 1544. Reportable Transaction Disclosure Statement Use Form 8886 to disclose information for each reportable transaction in which you participated. Form 8886 must be filed for each tax year that your federal income tax liability is affected by your participation in the transaction. You may have to pay a penalty if you are required to file Form 8886 but do not do so. You may also have to pay interest and penalties on any reportable transaction understatements. The following are reportable transactions. • Any listed transaction that is the same as or substantially similar to tax avoidance transactions identified by the IRS. • Any transaction offered to you or a related party under conditions of confidentiality for which you paid an advisor a fee of at least $50,000. E-1 Cat. No. 24332T by you in connection with the activity of holding real property (other than mineral property). See Qualified nonrecourse financing below. • Cash, property, or borrowed amounts used in the activity (or contributed to the activity, or used to acquire your interest in the activity) that are protected against loss by a guarantee, stop-loss agreement, or other similar arrangement (excluding casualty insurance and insurance against tort liability). • Amounts borrowed for use in the activity from a person who has an interest in the activity (other than as a creditor) or who is related, under section 465(b)(3)(C), to a person (other than you) having such an interest. Qualified nonrecourse financing. Quali- Passive Activity A passive activity is any business activity in which you did not materially participate and any rental activity, except as explained later on this page. If you are a limited partner, you generally are not treated as having materially participated in the partnership’s activities for the year. The rental of real or personal property is generally a rental activity under the passive activity loss rules, but exceptions apply. If your rental of property is not treated as a rental activity, you must determine whether it is a trade or business activity, and if so, whether you materially participated in the activity for the tax year. See the Instructions for Form 8582 to determine whether you materially participated in the activity and for the definition of “rental activity.” See Pub. 925 for special rules that apply to rentals of: • Substantially nondepreciable property, • Property incidental to development activities, and • Property related to activities in which you materially participate. original tax return that declares you are a qualifying taxpayer for the year and you are making the election under section 469(c)(7)(A). The election applies for the year made and all later years in which you are a real estate professional. You can revoke the election only if your facts and circumstances materially change. If you were a real estate professional for 2009, complete Schedule E, line 43. Other activities. The rental of your home that you also used for personal purposes is not a passive activity. See the instructions for line 2 on page E-3. A working interest in an oil or gas well that you held directly or through an entity that did not limit your liability is not a passive activity even if you did not materially participate. Royalty income not derived in the ordinary course of a trade or business reported on Schedule E generally is not considered income from a passive activity. For more details on passive activities, see the Instructions for Form 8582 and Pub. 925. fied nonrecourse financing is treated as an amount at risk if it is secured by real property used in an activity of holding real property that is subject to the at-risk rules. Qualified nonrecourse financing is financing for which no one is personally liable for repayment and is: • Borrowed by you in connection with the activity of holding real property (other than mineral property), • Not convertible from a debt obligation to an ownership interest, and • Loaned or guaranteed by any federal, state, or local government, or borrowed by you from a qualified person. Qualified person. A qualified person is a person who actively and regularly engages in the business of lending money, such as a bank or savings and loan association. A qualified person cannot be: • Related to you (unless the nonrecourse financing obtained is commercially reasonable and on substantially the same terms as loans involving unrelated persons), • The seller of the property (or a person related to the seller), or • A person who receives a fee due to your investment in real property (or a person related to that person). Activities That Are Not Passive Activities Activities of real estate professionals. If Exception for Certain Rental Real Estate Activities If you meet all of the following conditions, your rental real estate losses are not limited by the passive activity loss rules. If you do not meet all of these conditions, see the Instructions for Form 8582 to find out if you must complete and attach Form 8582 to figure any losses allowed. 1. Rental real estate activities are your only passive activities. 2. You do not have any prior year unallowed losses from any passive activities. 3. All of the following apply if you have an overall net loss from these activities: a. You actively participated (defined below) in all of the rental real estate activities; b. If married filing separately, you lived apart from your spouse all year; c. Your overall net loss from these activities is $25,000 or less ($12,500 or less if married filing separately); d. You have no current or prior year unallowed credits from passive activities; and e. Your modified adjusted gross income (defined on page E-3) is $100,000 or less ($50,000 or less if married filing separately). Active participation. You can meet the active participation requirement without regular, continuous, and substantial involvement in real estate activities. But you must have participated in making management decisions or arranging for others to provide services (such as repairs) in a significant and bona fide sense. Such management decisions include: • Approving new tenants, For more details about the at-risk rules, see the Instructions for Form 6198 and Pub. 925. Passive Activity Loss Rules The passive activity loss rules may limit the amount of losses you can deduct. These rules apply to losses in Parts I, II, and III, and line 40 of Schedule E. Losses from passive activities may be subject first to the at-risk rules. Losses deductible under the at-risk rules are then subject to the passive activity loss rules. You generally can deduct losses from passive activities only to the extent of income from passive activities. An exception applies to certain rental real estate activities (explained later on this page). you were a real estate professional for 2009, any rental real estate activity in which you materially participated is not a passive activity. You were a real estate professional for the year, only if you met both of the following conditions. • More than half of the personal services you performed in trades or businesses during the year were performed in real property trades or businesses in which you materially participated. • You performed more than 750 hours of services during the year in real property trades or businesses in which you materially participated. If you are married filing jointly, either you or your spouse must meet both of the above conditions, without taking into account services performed by the other spouse. A real property trade or business is any real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage trade or business. Services you performed as an employee are not treated as performed in a real property trade or business unless you owned more than 5% of the stock (or more than 5% of the capital or profits interest) in the employer. For purposes of this rule, each interest in rental real estate is a separate activity, unless you elect to treat all your interests in rental real estate as one activity. To make this election, attach a statement to your E-2 tures, and • Other similar decisions. You are not considered to actively participate if, at any time during the tax year, your interest (including your spouse’s interest) in the activity was less than 10% by value of all interests in the activity. If you are a limited partner, you are also not treated as actively participating in a partnership’s rental real estate activities. Modified adjusted gross income. This is • Deciding on rental terms, • Approving capital or repair expendi- estate and royalty income on Schedule C, Schedule C-EZ, or Form 4835 instead of Schedule E. Income or Loss From Rental Real Estate and Royalties Use Part I to report: • Income and expenses from rental real estate (including personal property leased with real estate), and • Royalty income and expenses. • For an estate or trust only, farm rental income and expenses based on crops or livestock produced by the tenant. Do not use Form 4835 or Schedule F (Form 1040) for this purpose. If you own a part interest in a rental real estate property, report only your part of the income and expenses on Schedule E. Complete lines 1 and 2 for each rental real estate property. Leave these lines blank for each royalty property. If you have more than three rental real estate or royalty properties, complete and attach as many Schedules E as you need to list them. But fill in the “Totals” column on only one Schedule E. The figures in the “Totals” column on that Schedule E should be the combined totals for all properties reported on your Schedules E. If you are also using page 2 of Schedule E, use the same Schedule E on which you entered the combined totals for Part I. Personal property. Do not use Schedule E to report income and expenses from the rental of personal property, such as equipment or vehicles. Instead, use Schedule C or C-EZ if you are in the business of renting personal property. You are in the business of renting personal property if the primary purpose for renting the property is income or profit and you are involved in the rental activity with continuity and regularity. your adjusted gross income from Form 1040, line 38, or Form 1040NR, line 36, without taking into account: • Any allowable passive activity loss, • Rental real estate losses allowed for real estate professionals (see Activities of real estate professionals on page E-2), • Taxable social security or tier 1 railroad retirement benefits, • Deductible contributions to a traditional IRA or certain other qualified retirement plans under section 219, • The student loan interest deduction, • The tuition and fees deduction, • The domestic production activities deduction, • The deduction for one-half of self-employment tax, • The exclusion from income of interest from series EE and I U.S. savings bonds used to pay higher education expenses, and • Any excluded amounts under an employer’s adoption assistance program. the instructions for Schedule C, line G, on page C-3. To make the election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Each of you must file a separate Schedule C or C-EZ. On each line of your separate Schedule C or C-EZ, you must enter your share of the applicable income, deduction, or loss. See the instructions for Schedule C or C-EZ and Publication 527 for more details. As long as you remain qualified, your election cannot be revoked without IRS consent. Note. Rental income reported on Schedule E is not taxable for self-employment tax purposes. Electing qualified joint venture status and using the Schedule C or C-EZ does not alter the application of the self-employment tax or the passive loss limitation rules. Extraterritorial income exclusion. Except as otherwise provided in the Internal Revenue Code, gross income includes all income from whatever source derived. Gross income, however, does not include extraterritorial income that is qualifying foreign trade income under certain circumstances. Use Form 8873 to figure the extraterritorial income exclusion. Report it on Schedule E as explained in the Instructions for Form 8873. Chapter 11 bankruptcy cases. If you were a debtor in a chapter 11 bankruptcy case, see page 21 of the instructions for Form 1040. Recordkeeping You must keep records to support items reported on Schedule E in case the IRS has questions about them. If the IRS examines your tax return, you may be asked to explain the items reported. Good records will help you explain any item and arrive at the correct tax with a minimum of effort. If you do not have records, you may have to spend time getting statements and receipts from various sources. If you cannot produce the correct documents, you may have to pay additional tax and be subject to penalties. Line 1 For rental real estate property only, show all of the following. • The kind of property you rented (for example, townhouse, commercial building, mobile home, and self-storage unit). • The street address, city or town, state, and ZIP code. If the property is located in a foreign country, enter the city, province or state, country, and postal code. • Your percentage of ownership in the property, if less than 100%. If your rental of personal property is not a business, see the instructions for Form 1040, lines 21 and 36, to find out how to report the income and expenses. Husband-wife qualified joint venture. Do Specific Instructions Filers of Form 1041. If you are a fiduciary filing Schedule E with Form 1041, enter the estate’s or trust’s employer identification number (EIN) in the space for “Your social security number.” not use Schedule E to report income and expenses from a rental real estate business that is a qualified joint venture conducted by you and your spouse, if you file a joint return for the tax year. Generally, if you and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you are taxed as a partnership. However, if you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make an election to be treated as a qualified joint venture instead of a partnership. For an explanation of “material participation,” see Line 2 If you rented out a dwelling unit that you also used for personal purposes during the year, you may not be able to deduct all the expenses for the rental part. “Dwelling unit” (unit) means a house, apartment, condominium, or similar property. A day of personal use is any day, or part of a day, that the unit was used by: • You for personal purposes, • Any other person for personal purposes, if that person owns part of the unit (unless rented to that person under a “shared equity” financing agreement), Part I Before you begin, see the instructions for lines 3 and 4 on page E-4 to determine if you should report your rental real E-3 • Anyone in your family (or in the family of someone else who owns part of the unit), unless the unit is rented at a fair rental price to that person as his or her main home, • Anyone who pays less than a fair rental price for the unit, or • Anyone under an agreement that lets you use some other unit. • Any day you spent working substanDo not count as personal use: tially full time repairing and maintaining the unit, even if family members used it for recreational purposes on that day, or • Any days you used the unit as your main home before or after renting it or offering it for rent, if you rented or tried to rent it for at least 12 consecutive months (or for a period of less than 12 consecutive months at the end of which you sold or exchanged it). Check “Yes” if you or your family used the unit for personal purposes in 2009 more than the greater of: • 14 days, or • 10% of the total days it was rented to others at a fair rental price. Otherwise, check “No.” If you checked “No” you can deduct all your expenses for the rental part, subject to the At-Risk Rules and the Passive Activity Loss Rules explained beginning on page E-1. If you checked “Yes” and rented the unit out for fewer than 15 days in 2009, do not report the rental income and do not deduct any rental expenses. If you itemize deductions on Schedule A, you can deduct allowable interest, taxes, and casualty losses. If you do not itemize, you can increase your standard deduction by certain state or local real estate taxes, a net disaster loss attributable to a federally declared disaster, and new motor vehicle taxes. If you checked “Yes” and rented the unit out for at least 15 days in 2009, you may not be able to deduct all your rental expenses. You can deduct all of the following expenses for the rental part on Schedule E. • Mortgage interest. • Real estate taxes. • Casualty losses. • Other rental expenses not related to your use of the unit as a home, such as advertising expenses and rental agents’ fees. If any income is left after deducting these expenses, you can deduct other expenses, including depreciation, up to the amount of remaining income. You can carry over to 2010 the amounts you cannot deduct. Regardless of whether you answered “No” or “Yes” to Question 2, expenses related to days of personal use do not qualify as rental expenses. You must allocate your expenses based on the number of days of personal use to total use of the property. For example, you used your property for personal use for 7 days and rented it for 63 days. Generally, 10% (7÷70) of your expenses are not rental expenses and cannot be deducted on Schedule E. See Pub. 527 for details. Line 3 If you received rental income from real estate (including personal property leased with real estate) and you were not in the real estate business, report the income on line 3. Use a separate column (A, B, or C) for each rental property. Include income received for renting a room or other space. If you received services or property instead of money as rent, report the fair market value of what you received as rental income. Be sure to enter the total of all your rents in the “Totals” column even if you have only one property. If you provided significant services to the renter, such as maid service, report the rental activity on Schedule C or C-EZ, not on Schedule E. Significant services do not include the furnishing of heat and light, cleaning of public areas, trash collection, or similar services. If you were in the real estate sales business, include on line 3 only the rent received from real estate (including personal property leased with real estate) you held for investment or speculation. Do not use Schedule E to report income and expenses from rentals of real estate held for sale to customers in the ordinary course of your real estate sales business. Instead, use Schedule C or C-EZ for these rentals. For more details on rental income use TeleTax topic 414 (see the Instructions for Form 1040, page 93), or see Pub. 527. Rental income from farm production or crop shares. Report farm rental income If you received $10 or more in royalties during 2009, the payer should send you a Form 1099-MISC or similar statement by February 1, 2010, showing the amount you received. If you are in business as a self-employed writer, inventor, artist, etc., report your royalty income and expenses on Schedule C or C-EZ. You may be able to treat amounts received as “royalties” for the transfer of a patent or amounts received on the disposal of coal and iron ore as the sale of a capital asset. For details, see Pub. 544. Enter on line 4 the gross amount of royalty income, even if state or local taxes were withheld from oil or gas payments you received. Include taxes withheld by the producer on line 16. General Instructions for Lines 5 Through 21 Enter your rental and royalty expenses for each property in the appropriate column. You can deduct all ordinary and necessary expenses, such as taxes, interest, repairs, insurance, management fees, agents’ commissions, and depreciation. Do not deduct the value of your own labor or amounts paid for capital investments or capital improvements. Enter your total expenses for mortgage interest (line 12), total expenses before depreciation expense or depletion (line 19), and depreciation expenses or depletion (line 20) in the “Totals” column even if you have only one property. Renting out part of your home. If you rent out only part of your home or other property, deduct the part of your expenses that applies to the rented part. Credit or deduction for access expenditures. You may be able to claim a tax and expenses on Form 4835 if: • You are an individual, • You received rental income based on crops or livestock produced by the tenant, and • You did not materially participate in the management or operation of the farm. credit for eligible expenditures paid or incurred in 2009 to provide access to your business for individuals with disabilities. See Form 8826 for details. You can also elect to deduct up to $15,000 of qualified costs paid or incurred in 2009 to remove architectural or transportation barriers to individuals with disabilities and the elderly. You cannot take both the credit and the deduction for the same expenditures. Line 6 You can deduct ordinary and necessary auto and travel expenses related to your rental activities, including 50% of meal expenses incurred while traveling away from home. You generally can either deduct your actual expenses or take the standard mileage rate. You must use actual expenses if you used more than four vehicles simultaneously in your rental activities (as in fleet operations). You cannot use actual expenses for a leased vehicle if you previ- Line 4 Report on line 4 royalties from oil, gas, or mineral properties (not including operating interests); copyrights; and patents. Use a separate column (A, B, or C) for each royalty property. Be sure to enter the total of all your royalties in the “Totals” column even if you have only one source of royalties. E-4 ously used the standard mileage rate for that vehicle. You can use the standard mileage rate for 2009 only if you: • Owned the vehicle and used the standard mileage rate for the first year you placed the vehicle in service, or • Leased the vehicle and are using the standard mileage rate for the entire lease period (except the period, if any, before 1998). If you take the standard mileage rate, multiply the number of miles driven in connection with your rental activities by 55 cents. Include this amount and your parking fees and tolls on line 6. If you paid $600 or more in interest on a mortgage during 2009, the recipient should send you a Form 1098 or similar statement by February 1, 2010, showing the total interest received from you. If you paid more mortgage interest than is shown on your Form 1098 or similar statement, see Pub. 535 to find out if you can deduct part or all of the additional interest. If you can, enter the entire deductible amount on line 12. Attach a statement to your return explaining the difference. On the dotted line next to line 12, enter “See attached.” Note. If the recipient was not a financial institution or you did not receive a Form 1098 from the recipient, report your deductible mortgage interest on line 13. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on the mortgage, and the other person received Form 1098, report your share of the deductible interest on line 13. Attach a statement to your return showing the name and address of the person who received Form 1098. On the dotted line next to line 13, enter “See attached.” Line 20 Depreciation is the annual deduction you must take to recover the cost or other basis of business or investment property having a useful life substantially beyond the tax year. Land is not depreciable. Depreciation starts when you first use the property in your business or for the production of income. It ends when you deduct all your depreciable cost or other basis or no longer use the property in your business or for the production of income. See the Instructions for Form 4562 to figure the amount of depreciation to enter on line 20. Be sure to enter the total of all your depreciation in the “Totals” column even if you have only one property. You must complete and attach Form 4562 only if you are claiming: • Depreciation on property first placed in service during 2009, • Depreciation on listed property (defined in the Instructions for Form 4562), including a vehicle, regardless of the date it was placed in service, or • A section 179 expense deduction or amortization of costs that began in 2009. See Pub. 527 for more information on depreciation of residential rental property. See Pub. 946 for a more comprehensive guide to depreciation. If you have an economic interest in mineral property, you may be able to take a deduction for depletion. Mineral property includes oil and gas wells, mines, and other natural deposits (including geothermal deposits). See Pub. 535 for details. Separating cost of land and buildings. If you buy buildings and your cost includes the cost of the land on which they stand, you must divide the cost between the land and the buildings to figure the basis for depreciation of the buildings. The part of the cost that you allocate to each asset is the ratio of the fair market value of that asset to the fair market value of the whole property at the time you buy it. If you are not certain of the fair market values of the land and the buildings, you can divide the cost between them based on their assessed values for real estate tax purposes. You cannot deduct rental or lease payments, depreciation, or your actual auto expenses if you use the standard mileage rate. portion of the cost of gasoline, oil, repairs, insurance, tires, license plates, etc., and • Show auto rental or lease payments on line 18 and depreciation on line 20. If you claim any auto expenses (actual or the standard mileage rate), you must complete Part V of Form 4562 and attach Form 4562 to your tax return. See Pub. 527 and Pub. 463 for details. • Include on line 6 the rental activity If you deduct actual auto expenses: Line 14 You can deduct the cost of repairs made to keep your property in good working condition. Repairs generally do not add significant value to the property or extend its life. Examples of repairs are fixing a broken lock or painting a room. Improvements that increase the value of the property or extend its life, such as replacing a roof or renovating a kitchen, must be capitalized and depreciated (that is, they cannot be deducted in full in the year they are paid or incurred). See the instructions for line 20 on this page. Line 10 Include on line 10 fees for tax advice and the preparation of tax forms related to your rental real estate or royalty properties. Do not deduct legal fees paid or incurred to defend or protect title to property, to recover property, or to develop or improve property. Instead, you must capitalize these fees and add them to the property’s basis. Line 17 You can deduct the cost of ordinary and necessary telephone calls related to your rental activities or royalty income (for example, calls to the renter). However, the base rate (including taxes and other charges) for local telephone service for the first telephone line into your residence is a personal expense and is not deductible. Lines 12 and 13 In general, to determine the interest expense allocable to your rental activities, you must have records to show how the proceeds of each debt were used. Specific tracing rules apply for allocating debt proceeds and repayment. See Pub. 535 for details. If you have a mortgage on your rental property, enter on line 12 the amount of interest you paid for 2009 to banks or other financial institutions. Be sure to enter the total of all your mortgage interest in the “Totals” column even if you have only one property. Do not deduct prepaid interest when you paid it. You can deduct it only in the year to which it is properly allocable. Points, including loan origination fees, charged only for the use of money must be deducted over the life of the loan. Line 18 Enter on line 18 any ordinary and necessary expenses that are not listed on lines 5 through 17 and line 20. You may be able to deduct, on line 18, part or all of the cost of modifying existing commercial buildings to make them energy efficient. For details, see section 179D, Notice 2006-52, and Notice 2008-40. You can find Notice 2006-52 on page 1175 of Internal Revenue Bulletin 2006-26 at www.irs.gov/irb/2006-26_IRB/ar11.html. You can find Notice 2008-40 on page 725 of Internal Revenue Bulletin 2008-14 at www.irs.gov/irb/2008-14_IRB/ar12.html. Line 22 If you have amounts for which you are not at risk, use Form 6198 to determine the amount of your deductible loss. Enter that amount in the appropriate column of Schedule E, line 22. In the space to the left of line 22, enter “Form 6198.” Attach Form 6198 to your return. For details on the at-risk rules, see page E-1. Line 23 Do not complete line 23 if the amount on line 22 is from royalty properties. E-5 If you have a rental real estate loss from a passive activity (defined on page E-2), the amount of loss you can deduct may be limited by the passive activity loss rules. You may need to complete Form 8582 to figure the amount of loss, if any, to enter on line 23. See the Instructions for Form 8582 to determine if your loss is limited. If your rental real estate loss is not from a passive activity or you meet the exception for certain rental real estate activities (explained on page E-2), you do not have to complete Form 8582. Enter the loss from line 22 on line 23. If you have an unallowed rental real estate loss from a prior year that after completing Form 8582 you can deduct this year, include that loss on line 23. ship) or S corporation reported them on its return, you may have to file Form 8082. If you are a partner in an electing large partnership, you must report the items shown on Schedule K-1 (Form 1065-B) on your tax return the same way that the partnership reported the items on Schedule K-1. Special rules that limit losses. Please note the following. • If you have a current year loss, or a prior year unallowed loss, from a partnership or an S corporation, see At-Risk Rules and Passive Activity Loss Rules beginning on page E-1. ever applies, the amount of the credit claimed for 2008. Part or all of your share of partnership income or loss from the operation of the business may be considered net earnings from self-employment that must be reported on Schedule SE. Enter the amount from Schedule K-1 (Form 1065), box 14, code A (or from Schedule K-1 (Form 1065-B), box 9 (code J1)), on Schedule SE, after you reduce this amount by any allowable expenses attributable to that income. Foreign Partnerships Follow the instructions below in addition to the instructions above for Domestic Partnerships. If you are a U.S. person, you may have received Forms 1099-B, 1099-DIV, and 1099-INT reporting your share of certain partnership income, because payors of income to the foreign partnership generally are required to allocate and report payments of that income directly to each of the partners of the foreign partnership. If you received both Schedule K-1 and Form 1099 for the same type and source of partnership income, report only the income shown on Schedule K-1 in accordance with its instructions. If you are not a U.S. person, you may have received Forms 1042-S reporting your share of certain partnership income, because payors of income to the foreign partnership generally are required to allocate and report payments of that income directly to each of the partners of the foreign partnership. If you received both Schedule K-1 and Form 1042-S for the same type and source of partnership income, report the income on your return as follows. • For all income effectively connected with the conduct of a trade or business in the United States, report only the income shown on Schedule K-1 in accordance with its instructions. • For all income not effectively connected with the conduct of a trade or business in the United States, report on page 4 of Form 1040NR only the income shown on Form 1042-S (if you are required to file Form 1040NR). Requirement to file Form 8865. If you are Parts II and III If you need more space in Part II or III to list your income or losses, attach a continuation sheet using the same format as shown in Part II or III. However, be sure to complete the “Totals” columns for lines 29a and 29b, or lines 34a and 34b, as appropriate. If you also completed Part I on more than one Schedule E, use the same Schedule E on which you entered the combined totals in Part I. Tax preference items. If you are a partner, a shareholder in an S corporation, or a beneficiary of an estate or trust, you must take into account your share of preferences and adjustments from these entities for the alternative minimum tax on Form 6251 or Schedule I (Form 1041). Partners and S corporation shareholders should get a separate statement of income, expenses, deductions, and credits for each activity engaged in by the partnership and S corporation. If you are subject to the at-risk rules for any activity, check the box on the appropriate line in Part II, column (e) of Schedule E, and use Form 6198 to figure the amount of any deductible loss. If the activity is nonpassive, enter any deductible loss from Form 6198 on the appropriate line in Part II, column (h) of Schedule E. • If you have a passive activity loss, you generally need to complete Form 8582 to figure the amount of the allowable loss to enter in Part II, column (f), for that activity. But if you are a general partner or an S corporation shareholder reporting your share of a partnership or an S corporation loss from a rental real estate activity and you meet all of the conditions listed on page E-2 under Exception for Certain Rental Real Estate Activities, you do not have to complete Form 8582. Instead, enter your allowable loss in Part II, column (f). If you have passive activity income, complete Part II, column (g), for that activity. Part II Income or Loss From Partnerships and S Corporations If you are a member of a partnership or joint venture or a shareholder in an S corporation, use Part II to report your share of the partnership or S corporation income (even if not received) or loss. You should receive a Schedule K-1 from the partnership or S corporation. You should also receive a copy of the Partner’s or Shareholder’s Instructions for Schedule K-1. Your copy of Schedule K-1 and its instructions will tell you where on your return to report your share of the items. If you did not receive these instructions with your Schedule K-1, see the instructions for Form 1040 or Form 1040NR for how to get tax forms, instructions, and publications. Do not attach Schedules K-1 to your return. Keep them for your records. If you are treating items on your tax return differently from the way the partnership (other than an electing large partner- If you have nonpassive income or losses, complete Part II, columns (h) through (j), as appropriate. Domestic Partnerships See the Schedule K-1 instructions before entering on your return other partnership items from a passive activity or income or loss from any publicly traded partnership. You can deduct unreimbursed ordinary and necessary expenses you paid on behalf of the partnership if you were required to pay these expenses under the partnership agreement. See the instructions for line 27 on page E-7 for how to report these expenses. Report allowable interest expense paid or incurred from debt-financed acquisitions in Part II or on Schedule A depending on the type of expenditure to which the interest is allocated. See Pub. 535 for details. If you claimed a credit for federal tax on gasoline or other fuels on your 2008 Form 1040, or Form 1040NR, based on information received from the partnership, enter as income in column (g) or column (j), which- a U.S. person, you may have to file Form 8865 if any of the following applies. 1. You controlled a foreign partnership (that is, you owned more than a 50% direct or indirect interest in the partnership). 2. You owned at least a 10% direct or indirect interest in a foreign partnership while U.S. persons controlled that partnership. 3. You had an acquisition, disposition, or change in proportional interest of a foreign partnership that: a. Increased your direct interest to at least 10% or reduced your direct interest of at least 10% to less than 10%, or E-6 b. Changed your direct interest by at least a 10% interest. 4. You contributed property to a foreign partnership in exchange for a partnership interest if: a. Immediately after the contribution, you owned, directly or indirectly, at least a 10% interest in the partnership, or b. The value of the property you contributed, when added to the value of any other property you or any related person contributed to the partnership during the 12-month period ending on the date of transfer, exceeds $100,000. Also, you may have to file Form 8865 to report certain dispositions by a foreign partnership of property you previously contributed to that partnership if you were a partner at the time of the disposition. For more details, including penalties for failing to file Form 8865, see Form 8865 and its separate instructions. Losses Not Allowed in Prior Years Due to the At-Risk or Basis Limitations • Enter your total prior year unallowed losses that are now deductible on a separate line in column (h) of line 28. Do not combine these losses with, or net them against, any current year amounts from the partnership or S corporation. • Enter “PYA” in column (a) of the same line. Prior Year Unallowed Losses From a Passive Activity Not Reported on Form 8582 description of the related item (for example, depletion) in column (a) of the same line. If you are required to file Form 8582, see the Instructions for Form 8582 before completing Schedule E. Part III Income or Loss From Estates and Trusts If you are a beneficiary of an estate or trust, use Part III to report your part of the income (even if not received) or loss. You should receive a Schedule K-1 (Form 1041) from the fiduciary. Your copy of Schedule K-1 and its instructions will tell you where on your return to report the items from Schedule K-1. Do not attach Schedule K-1 to your return. Keep it for your records. If you are treating items on your tax return differently from the way the estate or trust reported them on its return, you may have to file Form 8082. If you have estimated taxes credited to you from a trust (Form 1041, Schedule K-1, box 13, code A), enter “ES payment claimed” and the amount on the dotted line next to line 37. Do not include this amount in the total on line 37. Instead, enter the amount on Form 1040, line 62, or Form 1040NR, line 59. A U.S. person who transferred property to a foreign trust may have to report the income received by the trust as a result of the transferred property if, during 2009, the trust had a U.S. beneficiary. See section 679. An individual who received a distribution from, or who was the grantor of or transferor to, a foreign trust must also complete Part III of Schedule B (Form 1040) and may have to file Form 3520. In addition, the owner of a foreign trust must ensure that the trust files an annual information return on Form 3520-A. S Corporations If you are a shareholder in an S corporation, your share of the corporation’s aggregate losses and deductions (combined income, losses, and deductions) is generally limited to the adjusted basis of your corporate stock and any debt the corporation owes you. Any loss or deduction not allowed this year because of the basis limitation can be carried forward and deducted in a later year subject to the basis limitation for that year. If you are claiming a deduction for your share of an aggregate loss, attach to your return a computation of the adjusted basis of your corporate stock and of any debt the corporation owes you. See the Schedule K-1 instructions for details. After applying the basis limitation, the deductible amount of your aggregate losses and deductions may be further reduced by the at-risk rules and the passive activity loss rules. See pages E-1 and E-2. Distributions of prior year accumulated earnings and profits of S corporations are dividends and are reported on Form 1040, line 9a. Interest expense relating to the acquisition of shares in an S corporation may be fully deductible on Schedule E. For details, see Pub. 535. Your share of the net income of an S corporation is not subject to self-employment tax. • Enter on a separate line in column (f) of line 28 your total prior year unallowed losses not reported on Form 8582. Such losses include prior year unallowed losses that are now deductible because you did not have an overall loss from all passive activities or you disposed of your entire interest in a passive activity in a fully taxable transaction. Do not combine these losses with, or net them against, any current year amounts from the partnership or S corporation. • Enter “PYA” in column (a) of the same line. Unreimbursed Partnership Expenses • You can deduct unreimbursed ordinary and necessary partnership expenses you paid on behalf of the partnership on Schedule E if you were required to pay these expenses under the partnership agreement (except amounts deductible only as itemized deductions, which you must enter on Schedule A). • Enter unreimbursed partnership expenses from nonpassive activities on a separate line in column (h) of line 28. Do not combine these expenses with, or net them against, any other amounts from the partnership. • If the expenses are from a passive activity and you are not required to file Form 8582, enter the expenses related to a passive activity on a separate line in column (f) of line 28. Do not combine these expenses with, or net them against, any other amounts from the partnership. • Enter “UPE” in column (a) of the same line. Part IV Income or Loss From Real Estate Mortgage Investment Conduits (REMICs) If you are the holder of a residual interest in a REMIC, use Part IV to report your total share of the REMIC’s taxable income or loss for each quarter included in your tax year. You should receive Schedule Q (Form 1066) and instructions from the REMIC for each quarter. Do not attach Schedules Q to your return. Keep them for your records. If you are treating REMIC items on your tax return differently from the way the REMIC reported them on its return, you may have to file Form 8082. Line 28 For nonpassive income or loss (and passive income or losses for which you are not filing Form 8582), enter in the applicable column of line 28 your current year ordinary income or loss from the partnership or S corporation. Report each related item required to be reported on Schedule E (including items of income or loss stated separately on Schedule K-1) in the applicable column of a separate line following the line on which you reported the current year ordinary income or loss. Also enter a Line 27 If you answered “Yes” on line 27, follow the instructions below. If you fail to follow these instructions, the IRS may send you a notice of additional tax due because the amounts reported by the partnership or S corporation on Schedule K-1 do not match the amounts you reported on your tax return. E-7 If you are the holder of a residual interest in more than one REMIC, attach a continuation sheet using the same format as in Part IV. Enter the combined totals of columns (d) and (e) on Schedule E, line 39. If you also completed Part I on more than one Schedule E, use the same Schedule E on which you entered the combined totals in Part I. REMIC income or loss is not income or loss from a passive activity. Note. If you are the holder of a regular Do not include the amount shown in column (c) in the total on Schedule E, line 39. Column (e). Report the total of the amounts shown on Schedule(s) Q, line 3b. If you itemize your deductions, include this amount on Form 1040, Schedule A, line 23. interest in a REMIC, do not use Schedule E to report the income you received. Instead, report it on Form 1040, line 8a. Column (c). Report the total of the Part V Summary Line 42 You will not be charged a penalty for underpayment of estimated tax if: 1. Your gross farming or fishing income for 2008 or 2009 is at least two-thirds of your gross income, and 2. You file your 2009 tax return and pay the tax due by March 1, 2010. Paperwork Reduction Act Notice. We ask amounts shown on Schedule(s) Q, line 2c. This is the smallest amount you are allowed to report as your taxable income (Form 1040, line 43). It is also the smallest amount you are allowed to report as your alternative minimum taxable income (AMTI) on Form 6251, line 29. If the amount in column (c) is larger than your taxable income would otherwise be, enter the amount from column (c) on Form 1040, line 43. Similarly, if the amount in column (c) is larger than your AMTI would otherwise be, enter the amount from column (c) on Form 6251, line 29. Enter “Sch. Q” on the dotted line to the left of this amount on Form 1040, line 43, and Form 6251, line 29, if applicable. Note. These rules also apply to estates and trusts that hold a residual interest in a REMIC. Be sure to make the appropriate entries on the comparable lines on Form 1041. ject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is approved under OMB control number 1545-1972 and is shown below. Recordkeeping . . . . . . . . . 3 hr. Learning about the law or the form . . . . . . . . . . . . . . 1 hr., 13 min. Preparing the form . . . . . . 1 hr., 27 min. Copying, assembling, and sending the form to the IRS 34 min. for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information requested on a form that is sub- If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed. E-8 Department of the Treasury Internal Revenue Service 2009 Instructions for Schedule F Use Schedule F (Form 1040) to report farm income and expenses. File it with Form 1040, 1040NR, 1041, 1065, or 1065-B. Profit or Loss Your farming activity may subject you to state and local taxes and other requirements such as business licenses and fees. Check with your state and local governments for more From Farming information. Additional information. Pub. 225 has more information and examples to help you complete your farm tax return. It also lists important dates that apply to farmers. Section references are to the Internal Revenue Code unless otherwise noted. Depreciation of machinery and equipment. What’s New Section 179 deduction increased. The dollar limit for the section 179 deduction to expense certain depreciable business property is $250,000 for property placed in service during 2009. This limit will be reduced when the total cost of section 179 property placed in service during the tax year exceeds $800,000. For more information, see Pub. 946. Special depreciation allowance extended. The recovery period for any machinery or equipment used in a farming business (other than any grain bin, cotton ginning asset, fence, or other land improvement) is 5 years under the GDS and 10 years under the Alternative Depreciation System (ADS). The original use of the machinery or equipment must begin with the taxpayer after December 31, 2008, and the machinery or equipment must be placed in service before January 1, 2010. For more information, see chapter 7 of Pub. 225. For qualifying property acquired after 2007 and placed in service in 2009, you may be able to take a depreciation deduction equal to 50% of the adjusted basis of the property. Qualifying property includes certain property with a recovery period of 20 years or less, certain computer software, water utility property, or qualified leasehold improvements. For more information, see Pub. 946. Single-member limited liability companies (LLCs) with employees. Single-member General Instructions Other Schedules and Forms You May Have To File • Schedule E, Part I, to report rental in- of livestock held for draft, breeding, sport, or dairy purposes. • Form 4835 to report rental income based on crop or livestock shares produced by a tenant if you are an individual who did not materially participate in the management or operation of a farm. This income is not subject to self-employment tax. See Pub. 225. • Form 6198 to figure your allowable loss if you have a business loss and you have amounts invested in the business for which you are not at risk. • Form 8582 to figure your deductible loss from passive activities. • Form 8824 to report like-kind exchanges. • Form 8903 to take a deduction for income from domestic production activities. Single-member limited liability company (LLC). Generally, a single-member do- LLCs that are disregarded as entities separate from their owner for federal income tax purposes are now required to file employment tax returns (effective for wages paid on or after January 1, 2009) using the LLC’s name and employer identification number (EIN) rather than the LLC owner’s name and EIN. This new requirement to use the LLC’s name and EIN also went into effect for certain excise tax returns beginning in 2008. Single-member LLCs not previously needing an EIN may now need to obtain an EIN for the payment and reporting of these taxes. For more information, see the Instructions for Form SS-4. Deduction for endangered species recovery expenses. You can choose to deduct ex- penses you paid for endangered species recovery, if the expenses are consistent with a recovery plan approved pursuant to the Endangered Species Act of 1973 for the area in which your land is located. See the instructions for line 14. Depreciation of race horses. The recovery period under the General Depreciation System (GDS) is 3 years for all race horses (regardless of age) placed in service after December 31, 2008. For more information, see chapter 7 of Pub. 225. come from pastureland that is based on a flat charge. However, report on Schedule F, line 10, pasture income received from taking care of someone else’s livestock. Also use Schedule E, Part I, to report farm rental income and expenses of a trust or estate based on crops or livestock produced by a tenant. • Schedule J to figure your tax by averaging your farm income over the previous 3 years. Doing so may reduce your tax. • Schedule SE to pay self-employment tax on income from your farming business. • Form 3800 to claim any of the general business credits. • Form 4562 to claim depreciation (including the special allowance) on assets placed in service in 2009, to claim amortization that began in 2009, to make an election under section 179 to expense certain property, or to report information on vehicles and other listed property. • Form 4684 to report a casualty or theft gain or loss involving farm business property, including purchased livestock held for draft, breeding, sport, or dairy purposes. See Pub. 225 for more information on how to report various farm losses, such as losses due to death of livestock or damage to crops or other farm property. • Form 4797 to report sales, exchanges, or involuntary conversions (other than from a casualty or theft) of certain farm property. Also use this form to report sales mestic LLC is not treated as a separate entity for federal income tax purposes. If you are the sole member of a domestic LLC engaged in the business of farming, file Schedule F. However, you can elect to treat a domestic LLC as a corporation. See Form 8832 for details on the election. Heavy highway vehicle use tax. If you use certain highway trucks, truck-trailers, tractor trailers, or buses in your farming business, you may have to pay a federal highway motor vehicle use tax. See the Instructions for Form 2290 to find out if you owe this tax. Information returns. You may have to file information returns for wages paid to employees, certain payments of fees and other nonemployee compensation, interest, rents, royalties, real estate transactions, annuities, and pensions. You may also have to file an information return if you sold $5,000 or more of consumer products to a person on a buy-sell, deposit-commission, or other similar basis for resale. For details, see the 2009 General Instructions for Forms 1099, 1098, 3921, 3922, 5498, and W-2G. If you received cash of more than $10,000 in one or more related transactions in your farming business, you may have to file Form 8300. For details, see Pub. 1544. Reportable transaction disclosure statement. If you entered into a reportable transaction in 2009, you must file Form 8886 to disclose information if your federal income tax liability is affected by your par- F-1 Cat. No. 17152R ticipation in the transaction. You may have to pay a penalty if you are required to file Form 8886 but do not do so. You may also have to pay interest and penalties on any reportable transaction understatements. For more information on reportable transactions, see Reportable Transaction Disclosure Statement o n page C-2 of the instructions for Schedule C. Estimated Tax If you had to make estimated tax payments for 2009 and you underpaid your estimated tax, you will not be charged a penalty if both of the following apply. • Your gross farming or fishing income for 2008 or 2009 is at least two-thirds of your gross income. • You file your 2009 tax return and pay the tax due by March 1, 2010. For details, see chapter 15 of Pub. 225. who does not take any active part in managing the business. Line D Enter on line D the employer identification number (EIN) that was issued to you. Do not enter your SSN. Do not enter another taxpayer’s EIN (for example, from any Forms 1099-MISC that you received). If you do not have an EIN, leave line D blank. You need an EIN only if you have a qualified retirement plan or are required to file employment, excise, alcohol, tobacco, or firearms returns, or are a payer of gambling winnings. If you need an EIN, see the Instructions for Form SS-4. Single-member LLCs. If you are the sole Husband-Wife Farm If you and your spouse jointly own and operate a farm as an unincorporated business and share in the profits and losses, you are partners in a partnership whether or not you have a formal partnership agreement. File Form 1065 instead of Schedule F. Specific Instructions Filers of Forms 1041, 1065, and 1065-B. Exception —Qualified Joint Venture If you and your spouse each materially participate as the only members of a jointly owned and operated farm, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. For an explanation of “material participation,” see the instructions for Schedule C, line G, on page C-3, and the instructions for line E on this page. Making the election. To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the farming business between you and your spouse in accordance with your respective interests in the venture. Each of you must file a separate Schedule F. On each line of your separate Schedule F, you must enter your share of the applicable income, deduction, or loss. Each of you must also file a separate Schedule SE to pay self-employment tax, as applicable. Do not complete the block labeled “Social security number (SSN).” Instead, enter the employer identification number (EIN) issued to the estate, trust, or partnership on line D. Line B On line B, enter one of the 14 principal agricultural activity codes listed in Part IV on page 2 of Schedule F. Select the code that best describes the source of most of your income. owner of an LLC that is not treated as a separate entity for federal income tax purposes, you may have an EIN that was issued to the LLC (and in the LLC’s legal name) if you are required to file employment tax returns and certain excise tax returns. However, you should enter on line D only the EIN issued to you and in your name as the sole proprietor of your farming business. If you do not have such an EIN, leave line D blank. Do not enter on line D the EIN issued to the LLC. Filers of Forms 1041, 1065, and 1065-B. Line C If you use the cash method, check box 1, “Cash.” Complete Schedule F, Parts I and II. Generally, report income in the year in which you actually or constructively received it and deduct expenses in the year you paid them. However, if the payment of an expenditure creates an asset having a useful life that extends substantially beyond the close of the year, it may not be deductible or may be deductible only in part for the year of the payment. See chapter 2 of Pub. 225. If you use an accrual method, check box 2, “Accrual.” Complete Schedule F, Parts II, III, and Part I, line 11. Generally, report income in the year in which you earned it and deduct expenses in the year you incurred them, even if you did not pay them in that year. Accrual basis taxpayers are put on a cash basis for deducting business expenses owed to a related cash-basis taxpayer. Other rules determine the timing of deductions based on economic performance. See Pub. 538. Farming syndicates. Farming syndicates Enter on line D the EIN issued to the estate, trust, or partnership. Line E Material participation. For the definition As long as you remain qualified, your election cannot be revoked without IRS consent. For more information, see E xception — Qualified Joint Venture on page C-2 of the instructions for Schedule C. of material participation for purposes of the passive activity rules, see the instructions for Schedule C, line G, on page C-3. If you meet any of the material participation tests described in those instructions, check the “Yes” box. If you are a retired or disabled farmer, you are treated as materially participating in a farming business if you materially participated 5 or more of the 8 years preceding your retirement or disability. Also, a surviving spouse is treated as materially participating in a farming activity if he or she actively manages the farm and the real property used for farming meets the estate tax rules for special valuation of farm property passed from a qualifying decedent. Check the “No” box if you did not materially participate. If you checked “No” and you have a loss from this business, see Limit on passive losses below. If you have a profit from this business activity but have current year losses from other passive activities or prior year unallowed passive activity losses, see the Instructions for Form 8582. Limit on passive losses. If you checked the Exception —Community Income If you and your spouse wholly own an unincorporated farming business as community property under the community property laws of a state, foreign country, or U.S. possession, the income and deductions are reported as follows. • If only one spouse participates in the business, all of the income from that business is the self-employment earnings of the spouse who carried on the business. • If both spouses participate, the income and deductions are allocated to the spouses based on their distributive shares. • If either or both you and your spouse are partners in a partnership, see Pub. 541. • If you and your spouse elected to treat the business as qualifying joint venture, see Exception — Qualified Joint Venture on this page. The only states with community property laws are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. A change in your reporting position will be treated as a conversion of the entity. cannot use the cash method of accounting. A farming syndicate may be a partnership, any other noncorporate group, or an S corporation if: • The interests in the business have at any time been offered for sale in a way that would require registration with any federal or state agency, or • More than 35% of the loss during any tax year is shared by limited partners or limited entrepreneurs. A limited partner is one who can lose only the amount invested or required to be invested in the partnership. A limited entrepreneur is a person “No” box and you have a loss from this business, you may have to use Form 8582 to figure your allowable loss, if any, to enter on Schedule F, line 36. Generally, you can deduct losses from passive activities only to the extent of income from passive activities. For details, see Pub. 925. F-2 Part I. Farm Income—Cash Method In Part I, show income received for items listed on lines 1 through 10. Generally, include both the cash actually or constructively received and the fair market value of goods or other property received for these items. Income is constructively received when it is credited to your account or set aside for you to use. However, direct payments or counter-cyclical payments received under the Farm Security and Rural Investment Act of 2002 are required to be included in income only in the year of actual receipt. If you ran the farm yourself and received rents based on crop shares or farm production, report these rents as income on line 4. Sales of livestock because of weather-related conditions. If you sold Lines 5a and 5b If you received distributions from a cooperative in 2009, you should receive a Form 1099-PATR. On line 5a, show your total distributions from cooperatives. This includes patronage dividends, nonpatronage distributions, per-unit retain allocations, and redemptions of nonqualified written notices of allocation and per-unit retain certificates. Show patronage dividends received in cash and the dollar amount of qualified written notices of allocation. If you received property as patronage dividends, report the fair market value of the property as income. Include cash advances received from a marketing cooperative. If you received per-unit retains in cash, show the amount of cash. If you received qualified per-unit retain certificates, show the stated dollar amount of the certificates. Do not include as income on line 5b patronage dividends from buying personal or family items, capital assets, or depreciable assets. Enter these amounts on line 5a only. Because you do not report patronage dividends from these items as income, you must subtract the amount of the dividend from the cost or other basis of these items. livestock because of drought, flood, or other weather-related conditions, you can elect to report the income from the sale in the year after the year of sale if all of the following apply. • Your main business is farming. • You can show that you sold the livestock only because of weather-related conditions. • Your area qualified for federal aid. See chapter 3 of Pub. 225 for details. Chapter 11 bankruptcy. If you were a debtor in a chapter 11 bankruptcy case during 2009, see page 21 in the instructions for Form 1040 and page SE-2 of the instructions for Schedule SE (Form 1040). Forms 1099 or CCC-1099-G. If you re- pledge part or all of your production to secure a CCC loan, you can elect to report the loan proceeds as income in the year you receive them, instead of the year you sell the crop. If you make this election (or made the election in a prior year), report loan proceeds you received in 2009 on line 7a. Attach a statement to your return showing the details of the loan(s). Forfeited CCC loans. Include the full amount forfeited on line 7b, even if you reported the loan proceeds as income. This amount may be reported to you on Form 1099-A. If you did not elect to report the loan proceeds as income, also include the forfeited amount on line 7c. If you did elect to report the loan proceeds as income, you generally will not have an entry on line 7c. But if the amount forfeited is different from your basis in the commodity, you may have an entry on line 7c. See chapter 3 of Pub. 225 for details on the tax consequences of electing to report CCC loan proceeds as income or forfeiting CCC loans. Lines 8a Through 8d In general, you must report crop insurance proceeds in the year you receive them. Federal crop disaster payments are treated as crop insurance proceeds. However, if 2009 was the year of damage, you can elect to include certain proceeds in income for 2010. To make this election, check the box on line 8c and attach a statement to your return. See chapter 3 of Pub. 225 for a description of the proceeds for which an election can be made and for what you must include in your statement. Generally, if you elect to defer any eligible crop insurance proceeds, you must defer all such crop insurance proceeds (including federal crop disaster payments). Enter on line 8a the total crop insurance proceeds you received in 2009, even if you elect to include them in income for 2010. Enter on line 8b the taxable amount of the proceeds you received in 2009. Do not include proceeds you elect to include in income for 2010. Enter on line 8d the amount, if any, of crop insurance proceeds you received in 2008 and elected to include in income for 2009. Lines 6a and 6b Enter on line 6a the total of the following amounts. • Direct payments. • Counter-cyclical payments. • Price support payments. • Market gain from the repayment of a secured Commodity Credit Corporation (CCC) loan for less than the original loan amount. • Diversion payments. • Cost-share payments (sight drafts). • Payments in the form of materials (such as fertilizer or lime) or services (such as grading or building dams). These amounts are government payments you received and are usually reported to you on Form 1099-G. You may also receive Form CCC-1099-G from the Department of Agriculture showing the amounts and types of payments made to you. On line 6b, report only the taxable amount. For example, do not report the market gain shown on Form CCC-1099-G on line 6b if you elected to report CCC loan proceeds as income in the year received (see Lines 7a Through 7c next). No gain results from redemption of the commodity because you previously reported the CCC loan proceeds as income. You are treated as repurchasing the commodity for the amount of the loan repayment. However, if you did not report the CCC loan proceeds under the election, you must report the market gain on line 6b. ceived Forms 1099 or CCC-1099-G showing amounts paid to you, first determine if the amounts are to be included with farm income. Then, use the following chart to determine where to report the income on Schedule F. Include the Form 1099 or CCC-1099-G amounts in the total amount reported on that line. Form Where to report 1099-PATR . . . . . . . . . . 1099-A . . . . . . . . . . . . . . 1099-MISC for crop insurance . . . . . . . . . . . . 1099-G or CCC-1099-G • for disaster payments • for other agricultural program payments . . .. .. .. .. .. Line 5a Line 7b Line 8a Line 8a Line 6a Line 10 Use this line to report income not shown on lines 1 through 9, such as the following. • Illegal federal irrigation subsidies. See chapter 3 of Pub. 225. • Bartering income. • Income from cancellation of debt. Generally, if a debt is canceled or forgiven, you must include the canceled amount in income. If a federal agency, financial institution, or credit union canceled or forgave a debt you owed of $600 or more, it should send you a Form 1099-C, or similar statement, by February 1, 2010, showing the You may also receive Form 1099-MISC for other types of income. In this case, report it on whichever line best describes the income. For example, if you received a Form 1099-MISC for custom farming work, include this amount on line 9, “Custom hire (machine work) income.” Lines 7a Through 7c Commodity Credit Corporation (CCC) loans. Generally, you do not report CCC loan proceeds as income. However, if you F-3 amount of debt canceled in 2009. However, you may be able to exclude the canceled debt from income. See Pub. 4681 for details. • State gasoline or fuel tax refunds you received in 2009. • The amount of credit for alcohol and cellulosic biofuel fuels claimed on Form 6478. • The amount of credit for biodiesel and renewable diesel fuels claimed on Form 8864. • The amount of credit for federal tax paid on fuels claimed on your 2008 Form 1040. For information on including the credit in income, see chapter 2 of Pub. 510. • Any recapture of excess depreciation on any listed property, including any section 179 expense deduction, if the business use percentage of that property decreased to 50% or less in 2009. Use Part IV of Form 4797 to figure the recapture. See the instructions for Schedule C, line 13, on page C-5 for the definition of listed property. • The inclusion amount on leased listed property (other than vehicles) when the business use percentage drops to 50% or less. See chapter 5 of Pub. 946 to figure the amount. • Any recapture of the deduction for clean-fuel vehicles and clean-fuel vehicle refueling property used in your farming business. For details on how to figure recapture, see Regulations section 1.179A-1. • Any income from breeding fees, or fees from renting teams, machinery, or land. • The gain or loss on the sale of commodity futures contracts if the contracts were made to protect you from price changes. These are a form of business insurance and are considered hedges. If you had a loss in a closed futures contract, enclose the amount of the loss in parentheses. • Personal or living expenses (such as taxes, insurance, or repairs on your home) that do not produce farm income. • Expenses of raising anything you or your family used. • The value of animals you raised that died. • Inventory losses. • Personal losses. If you were repaid for any part of an expense, you must subtract the amount you were repaid from the deduction. Capitalizing costs of property. If you produced real or tangible personal property or acquired property for resale, certain expenses must be included in inventory costs or capitalized. These expenses include the direct costs of the property and the share of any indirect costs allocable to that property. However, these rules generally do not apply to expenses of: 1. Producing any plant that has a preproductive period of 2 years or less, 2. Raising animals, or 3. Replanting certain crops if they were lost or damaged by reason of freezing temperatures, disease, drought, pests, or casualty. tax year for which you can make this election and by applying the special rules, discussed later on this page. In the case of a partnership or S corporation, the election must be made by the partner, shareholder, or member. This election cannot be made by tax shelters, farming syndicates, partnerships, or corporations required to use the accrual method of accounting under section 447 or 448(a)(3). Unless you obtain IRS consent, you must make this election for the first tax year in which you engage in a farming business involving the production of property subject to the capitalization rules. You cannot revoke this election without IRS consent. Special rules. If you make the election to deduct preproductive expenses for plants: • Any gain you realize when disposing of the plants is ordinary income up to the amount of the preproductive expenses you deducted, and • The alternative depreciation rules apply to property placed in service in any tax year your election is in effect. Exceptions (1) and (2) do not apply to tax shelters, farming syndicates, partnerships, or corporations required to use the accrual method of accounting under section 447 or 448(a)(3). If you capitalize your expenses, do not reduce your deductions on lines 12 through 34e by the capitalized expenses. Instead, enter the total amount capitalized in parentheses on line 34f (to indicate a negative amount) and enter “263A” in the space to the left of the total. See Preproductive period expenses on page F-7 for details. But you may be able to currently deduct rather than capitalize the expenses of producing a plant with a preproductive period of more than 2 years. See Election to deduct certain preproductive period expenses next. Election to deduct certain preproductive period expenses. If the preproductive pe- For details, see Uniform Capitalization Rules in chapter 6 of Pub. 225. Prepaid farm supplies. Generally, if you For property acquired and hedging positions established, you must clearly identify on your books and records both the hedging transaction and the item(s) or aggregate risk that is being hedged. Purchase or sales contracts are not true hedges if they offset losses that already occurred. If you bought or sold commodity futures with the hope of making a profit due to favorable price changes, report the profit or loss on Form 6781 instead of this line. use the cash method of accounting and your prepaid farm supplies are more than 50% of your other deductible farm expenses, your deduction for those supplies may be limited. Prepaid farm supplies include expenses for feed, seed, fertilizer, and similar farm supplies not used or consumed during the year. They also include the cost of poultry that would be allowable as a deduction in a later tax year if you were to (a) capitalize the cost of poultry bought for use in your farming business and deduct it ratably over the lesser of 12 months or the useful life of the poultry, and (b) deduct the cost of poultry bought for resale in the year you sell or otherwise dispose of it. If the limit applies, you can deduct prepaid farm supplies that do not exceed 50% of your other deductible farm expenses in the year of payment. You can deduct the excess only in the year you use or consume the supplies (other than poultry, which is deductible as explained above). For details and exceptions to these rules, see chapter 4 of Pub. 225. Whether or not this 50% limit applies, your expenses for livestock feed paid during the year but consumed in the later year, may be subject to the rules explained later in the line 18 instructions. Part II. Farm Expenses Do not deduct the following. riod of any plant you produce is more than 2 years, you can elect to currently deduct the expenses rather than capitalize them. But you cannot make this election for the costs of planting or growing citrus or almond groves that are incurred before the end of the fourth tax year beginning with the tax year you planted them in their permanent grove. You are treated as having made the election by deducting the preproductive period expenses in the first F-4 Line 12 You can deduct the actual expenses of operating your car or truck or take the standard mileage rate. You must use actual expenses if you used your vehicle for hire or you used five or more vehicles simultaneously in your farming business (such as in fleet operations). You cannot use actual expenses for a leased vehicle if you previously used the standard mileage rate for that vehicle. You can take the standard mileage rate for 2009 only if you: • Owned the vehicle and used the standard mileage rate for the first year you placed the vehicle in service, or • Leased the vehicle and are using the standard mileage rate for the entire lease period (except the period, if any, before 1998). If you take the standard mileage rate: • Multiply the number of business miles driven by 55 cents, and • Add to this amount your parking fees and tolls, and enter the total on line 12. Do not deduct depreciation, rent or lease payments, or your actual operating expenses. If you deduct actual expenses: • Include on line 12 the business portion of expenses for gasoline, oil, repairs, insurance, tires, license plates, etc., and • Show depreciation on line 16 and rent or lease payments on line 26a. If you claim any car or truck expenses (actual or the standard mileage rate), you must provide the information requested on Form 4562, Part V. Be sure to attach Form 4562 to your return. For details, see chapter 4 of Pub. 463. located. If no plan exists, the expenses must be consistent with a plan of a comparable state agency. You cannot deduct the expenses if they were paid or incurred for land used in farming in a foreign country. Do not deduct expenses you paid or incurred to drain or fill wetlands, or to prepare land for center pivot irrigation systems. Your deduction cannot exceed 25% of your gross income from farming (excluding certain gains from selling assets such as farm machinery and land). If your conservation expenses are more than the limit, the excess can be carried forward and deducted in later tax years. However, the amount deductible for any 1 year cannot exceed the 25% gross income limit for that year. For details, see chapter 5 of Pub. 225. line 28), the amount you paid for health insurance on behalf of yourself, your spouse, and dependents even if you do not itemize your deductions. See the instructions for Form 1040, line 29, or Form 1040NR, line 28, for details. Line 18 If you use the cash method, you cannot deduct when paid the cost of feed your livestock will consume in a later year unless all of the following apply. • The payment was for the purchase of feed rather than a deposit. • The prepayment had a business purpose and was not made merely to avoid tax. • Deducting the prepayment will not materially distort your income. If all of the above apply, you can deduct the prepaid feed when paid, subject to the overall limit for Prepaid farm supplies explained on page F-4. If all of the above do not apply, you can deduct the prepaid feed only in the year it is consumed. Line 15 Enter amounts paid for custom hire or machine work (the machine operator furnished the equipment). Do not include amounts paid for rental or lease of equipment that you operated yourself. Instead, report those amounts on line 26a. Line 20 Do not include the cost of transportation incurred in purchasing livestock held for resale as freight paid. Instead, add these costs to the cost of the livestock, and deduct them when the livestock is sold. Line 16 You can deduct depreciation of buildings, improvements, cars and trucks, machinery, and other farm equipment of a permanent nature. Do not deduct depreciation on your home, furniture or other personal items, land, livestock you bought or raised for resale, or other property in your inventory. You can also elect under section 179 to expense a portion of the cost of certain property you bought in 2009 for use in your farming business. The section 179 election is made on Form 4562. For information about depreciation and the section 179 deduction, see chapter 7 of Pub. 225. For details on the special depreciation allowance, see chapter 3 of Pub. 946. See the Instructions for Form 4562 for information on when you must complete and attach Form 4562. Line 22 Deduct on this line premiums paid for farm business insurance. Deduct on line 17 amounts paid for employee accident and health insurance. Amounts credited to a reserve for self-insurance or premiums paid for a policy that pays for your lost earnings due to sickness or disability are not deductible. For details, see chapter 6 of Pub. 535. Line 14 Deductible conservation expenses generally are those that are paid to conserve soil and water for land used in farming, to prevent erosion of land used for farming, or for endangered species recovery. These expenses include (but are not limited to) costs for the following. • The treatment or movement of earth, such as leveling, grading, conditioning, terracing, contour furrowing, and the restoration of soil fertility. • The construction, control, and protection of diversion channels, drainage ditches, irrigation ditches, earthen dams, watercourses, outlets, and ponds. • The eradication of brush. • The planting of windbreaks. • The achievement of site-specific management actions recommended in recovery plans approved pursuant to the Endangered Species Act of 1973. These expenses can be deducted only if they are consistent with a conservation plan approved by the Natural Resources Conservation Service of the Department of Agriculture or a recovery plan approved pursuant to the Endangered Species Act of 1973, for the area in which your land is Lines 23a and 23b Interest allocation rules. The tax treatment Line 17 Deduct contributions to employee benefit programs that are not an incidental part of a pension or profit-sharing plan included on line 25. Examples are accident and health plans, group-term life insurance, and dependent care assistance programs. If you made contributions on your behalf as a self-employed person to a dependent care assistance program, complete Form 2441, Parts I and III, to figure your deductible contributions to that program. Contributions you made on your behalf as a self-employed person to an accident and health plan or for group-term life insurance are not deductible on Schedule F. However, you may be able to deduct on Form 1040, line 29 (or on Form 1040NR, of interest expense differs depending on its type. For example, home mortgage interest and investment interest are treated differently. “Interest allocation” rules require you to allocate (classify) your interest expense so it is deducted (or capitalized) on the correct line of your return and receives the right tax treatment. These rules could affect how much interest you are allowed to deduct on Schedule F. Generally, you allocate interest expense by tracing how the proceeds of the loan are used. See chapter 4 of Pub. 535 for details. If you paid interest on a debt secured by your main home and any of the proceeds from that debt were used in your farming business, see chapter 4 of Pub. 535 to figure the amount to include on lines 23a and 23b. How to report. If you have a mortgage on real property used in your farming business (other than your main home), enter on line 23a the interest you paid for 2009 to banks or other financial institutions for which you received a Form 1098 (or similar state- F-5 ment). If you did not receive a Form 1098, enter the interest on line 23b. If you paid more mortgage interest than is shown on Form 1098, see chapter 4 of Pub. 535 to find out if you can deduct the additional interest. If you can, include the amount on line 23a. Attach a statement to your return explaining the difference and enter “See attached” in the margin next to line 23a. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on the mortgage and the other person received the Form 1098, include your share of the interest on line 23b. Attach a statement to your return showing the name and address of the person who received the Form 1098. In the margin next to line 23b, enter “See attached.” Do not deduct interest you prepaid in 2009 for later years; include only the part that applies to 2009. certain requirements. A one-participant plan is a plan that covers only you (or you and your spouse). Form 5500. File this form for a plan that does not meet the requirements for filing Form 5500-EZ. For details, see Pub. 560. taxes) of the first telephone line into your residence, even if you use it for your farming business. But you can deduct expenses you paid for your farming business that are more than the cost of the base rate for the first phone line. For example, if you had a second phone line, you can deduct the business percentage of the charges for that line, including the base rate charges. Lines 26a and 26b If you rented or leased vehicles, machinery, or equipment, enter on line 26a the business portion of your rental cost. But if you leased a vehicle for a term of 30 days or more, you may have to reduce your deduction by an inclusion amount. See Leasing a Car in chapter 4 of Pub. 463 to figure this amount. Enter on line 26b amounts paid to rent or lease other property such as pasture or farmland. Lines 34a Through 34f Include all ordinary and necessary farm expenses not deducted elsewhere on Schedule F, such as advertising, office supplies, etc. Do not include fines or penalties paid to a government for violating any law. At-risk loss deduction. Any loss from this activity that was not allowed as a deduction last year because of the at-risk rules is treated as a deduction allocable to this activity in 2009. However, for the loss to be deductible, the amount “at risk” must be increased. Bad debts. See chapter 10 of Pub. 535. Business start-up costs. If your farming business began in 2009, you can elect to deduct up to $5,000 of certain business start-up costs. This limit is reduced (but not below zero) by the amount by which your start-up costs exceed $50,000. Your remaining start-up costs can be amortized over a 180-month period, beginning with the month the farming business began. For details, see chapters 4 and 7 of Pub. 225. For amortization that begins in 2009, you must complete and attach Form 4562. Business use of your home. You may be Line 24 Enter the amounts you paid for farm labor. Do not include amounts paid to yourself. Reduce your deduction by the amounts claimed on: • Form 5884, Work Opportunity Credit, line 2; • Form 5884-A, Credits for Affected Midwestern Disaster Area Employers, line 6; • Form 8844, Empowerment Zone and Renewal Community Employment Credit, line 2; • Form 8845, Indian Employment Credit, line 4; and • Form 8932, Credit for Employer Differential Wage Payments, line 2. Include the cost of boarding farm labor but not the value of any products they used from the farm. Include only what you paid household help to care for farm laborers. Line 27 Enter amounts you paid for incidental repairs and maintenance of farm buildings, machinery, and equipment that do not add to the property’s value or appreciably prolong its life. Do not deduct repairs or maintenance on your home. Line 31 You can deduct the following taxes on this line. • Real estate and personal property taxes on farm business assets. • Social security and Medicare taxes you paid to match what you are required to withhold from farm employees’ wages. • Federal unemployment tax. • Federal highway use tax. • Contributions to state unemployment insurance fund or disability benefit fund if they are considered taxes under state law. Do not deduct the following taxes on this line. • Federal income taxes, including your self-employment tax. However, you can deduct one-half of your self-employment tax on Form 1040, line 27. • Estate and gift taxes. • Taxes assessed for improvements, such as paving and sewers. • Taxes on your home or personal use property. • State and local sales taxes on property purchased for use in your farming business. Instead, treat these taxes as part of the cost of the property. • Other taxes not related to your farming business. able to deduct certain expenses for business use of your home, subject to limitations. Use the worksheet in Pub. 587 to figure your allowable deduction. Do not use Form 8829. Forestation and reforestation costs. Refor- If you provided taxable fringe benefits to your employees, such as personal use of a car, do not include in farm labor the amounts you depreciated or deducted elsewhere. estation costs are generally capital expenditures. However, for each qualified timber property, you can elect to expense up to $10,000 ($5,000 if married filing separately) of qualifying reforestation costs paid or incurred in 2009. You can elect to amortize the remaining costs over 84 months. For amortization that begins in 2009, you must complete and attach Form 4562. The amortization election does not apply to trusts and the expense election does not apply to estates and trusts. For details on reforestation expenses, see chapters 4 and 7 of Pub. 225. Legal and professional fees. You can include on this line fees charged by accountants and attorneys that are ordinary and necessary expenses directly related to your farming business. Include fees for tax advice and for the preparation of tax forms related to your farming business. Also include expenses incurred in resolving asserted tax deficiencies related to your farming business. Tools. You can deduct the amount you Line 25 Enter your deduction for contributions to employee pension, profit-sharing, or annuity plans. If the plan included you as a self-employed person, enter contributions made as an employer on your behalf on Form 1040, line 28 (or on Form 1040NR, line 27), not on Schedule F. Generally, you must file the applicable form listed next if you maintain a pension, profit-sharing, or other funded-deferred compensation plan. The filing requirement is not affected by whether or not the plan qualified under the Internal Revenue Code, or whether or not you claim a deduction for the current tax year. There is a penalty for failure to timely file these forms. Form 5500-EZ. File this form if you have a one-participant retirement plan that meets Line 32 Enter amounts you paid for gas, electricity, water, and other utilities for business use on the farm. Do not include personal utilities. You cannot deduct the base rate (including paid for tools that have a short life or cost a small amount, such as shovels and rakes. F-6 Travel, meals, and entertainment. Generally, you can deduct expenses for farm business travel and 50% of your business meals and entertainment. But there are exceptions and limitations. See the instructions for Schedule C, lines 24a and 24b, that begin on page C-6. Preproductive period expenses. If you had preproductive period expenses in 2009 that you are capitalizing, enter the total of these expenses in parentheses on line 34f (to indicate a negative amount) and enter “263A” in the space to the left of the total. For details, see page F-4, Capitalizing costs of property, and Uniform Capitalization Rules in chapter 6 of Pub. 225. Line 35 If line 34f is a negative amount, subtract it from the total of lines 12 through 34e. Enter the result on line 35. Line 36 If you have a loss, the amount of loss you can deduct this year may be limited. Individuals, estates, and trusts must complete line 37 before entering the loss on line 36. If you checked the “No” box on line E, also see the Instructions for Form 8582. Enter the net profit or deductible loss here and on Form 1040, line 18, and Schedule SE, line 1a. Nonresident aliens — enter the net profit or deductible loss here and on Form 1040NR, line 19. Estates and trusts — enter the net profit or deductible loss here and on Form 1041, line 6. Partnerships — do not complete line 37; instead, stop here and enter the profit or loss on this line and on Form 1065, line 5 (or Form 1065-B, line 7). Community income. If you and your spouse had community income and are filing separate returns, see page SE-2 of the instructions for Schedule SE before figuring self-employment tax. Earned income credit. If you have a net profit on line 36, this amount is earned income and may qualify you for the earned income credit if you meet certain conditions. See the instructions for Form 1040, lines 64a and 64b, for details. Conservation Reserve Program (CRP) payments. If you received social security vested in the activity for which you are not at risk, you must complete Form 6198 to figure your allowable loss. The at-risk rules generally limit the amount of loss (including loss on the disposition of assets) you can claim to the amount you could actually lose in the activity. Check box 37b if you have amounts invested in this activity for which you are not at risk, such as the following. • Nonrecourse loans used to finance the activity, to acquire property used in the activity, or to acquire the activity that are not secured by your own property (other than property used in the activity). However, there is an exception for certain nonrecourse financing borrowed by you in connection with holding real property. • Cash, property, or borrowed amounts used in the activity (or contributed to the activity, or used to acquire the activity) that are protected against loss by a guarantee, stop-loss agreement, or other similar arrangement (excluding casualty insurance and insurance against tort liability). • Amounts borrowed for use in the activity from a person who has an interest in the activity, other than as a creditor, or who is related under section 465(b)(3)(C) to a person (other than you) having such an interest. Figuring your deductible loss. If all amounts are at risk in this activity, check box 37a. If you checked the “Yes” box on line E, enter your loss on line 36. But if you checked the “No” box on line E, you may need to complete Form 8582 to figure your allowable loss to enter on line 36. See the Instructions for Form 8582. If you checked box 37b, first complete Form 6198 to determine the amount of your deductible loss. If you checked the “Yes” box on line E, enter that amount on line 36. But if you checked the “No” box on line E, your loss may be further limited. See the Instructions for Form 8582. If your at-risk amount is zero or less, enter -0- on line 36. Be sure to attach Form 6198 to your return. If you checked box 37b and you do not attach Form 6198, the processing of your tax return may be delayed. Any loss from this activity not allowed for 2009 only because of the at-risk rules is treated as a deduction allocable to the activity in 2010. For details, see Pub. 925 and the Instructions for Form 6198. this method. See Pub. 225 for exceptions, inventory methods, how to change methods of accounting, and rules that require certain costs to be capitalized or included in inventory. Chapter 11 bankruptcy. If you were a debtor in a chapter 11 bankruptcy case during 2009, see page 21 of the instructions for Form 1040 and page SE-2 of the instructions for Schedule SE (Form 1040). Lines 39a Through 41c See the instructions for lines 5a through 7c on page F-3. Line 44 See the instructions for line 10 that begin on page F-3. Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is approved under OMB control numbers 1545-1975 and 1545-1976 and is shown below. Recordkeeping . . . . . . . . . Learning about the law or the form . . . . . . . . . . . . . . Copying, assembling, and sending the form to the IRS 7 hr., 5 min. 1 hr., 2 min. Preparing the form . . . . . . 2 hr., 52 min. 40 min. retirement or disability benefits in addition to CRP payments, the CRP payments are not subject to self-employment tax. You will deduct these payments from your net farm profit or loss on line 1b of Schedule SE. Do not make any adjustment on Schedule F. Part III. Farm Income—Accrual Method If you use an accrual method, report farm income when you earn it, not when you receive it. Generally, you must include animals and crops in your inventory if you use Line 37 At-risk rules. Generally, if you have a loss from a farming activity and amounts in- If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed. F-7 Department of the Treasury Internal Revenue Service 2009 Instructions for Schedule J Use Schedule J (Form 1040) to elect to figure your 2009 income tax by averaging, over the previous 3 years (base years), all or part of your 2009 taxable income from your trade or Income business of farming or fishing. This election may give you a lower tax if your 2009 income from farming or fishing is high and your taxable income for one or more of the 3 prior years Averaging for was low. In order to qualify for this election, you are not required to have been in the business of farming or fishing during any of the base years. Farmers and You may elect to average farming or fishing income even if your filing status was not the same in the election year and the base years. Fishermen This election does not apply when figuring your alternative minimum tax on Form 6251. Also, you do not have to recompute, because of this election, the tax liability of any minor child who was required to use your tax rates in the prior years. General Instructions Prior Year Tax Returns You may need copies of your original or amended income tax returns for 2006, 2007, and 2008 to figure your tax on Schedule J. If you need copies of your tax returns, use Form 4506. There is a $57 fee (subject to change) for each return requested. If your main home, principal place of business, or tax records are located in a federally declared disaster area, this fee will be waived. If you want a free transcript of your tax return or account, use Form 4506-T. See your Form 1040 instruction booklet to find out how to get these forms. Keep a copy of your 2009 income tax return to use for income averaging in 2010, 2011, or 2012. ment entered into before the tenant begins significant activities on the land. or horticultural commodity grown or raised by someone else, or • Merely buying or reselling plants or animals grown or raised by someone else. • Contract harvesting of an agricultural A farming business does not include: The word fish means finfish, mollusks, crustaceans, and all other forms of marine animal and plant life other than marine mammals and birds. A fishing business does not include any scientific research activity which is conducted by a scientific research vessel. Settlement from Exxon Valdez litigation. You will be treated as engaged in a fishing business with respect to any qualified settlement income you received if either of the following applies. 1. You were a plaintiff in the civil action In re Exxon Valdez, N o. 89-095-CV (HRH) (Consolidated) (D.Alaska); or 2. All of the following apply. a. You were a beneficiary of a plaintiff described in (1) above, b. You acquired the right to receive qualified settlement income from that plaintiff, and c. You were the spouse or an immediate relative of that plaintiff. Fishing business. A fishing business is the Definitions Farming business. A farming business is the trade or business of cultivating land or raising or harvesting any agricultural or horticultural commodity. This includes: 1. Operating a nursery or sod farm; 2. Raising or harvesting of trees bearing fruits, nuts, or other crops; 3. Raising ornamental trees (but not evergreen trees that are more than 6 years old when severed from the roots); 4. Raising, shearing, feeding, caring for, training, and managing animals; and 5. Leasing land to a tenant engaged in a farming business, but only if the lease payments are (a) based on a share of the tenant’s production (not a fixed amount), and (b) determined under a written agree- trade or business of fishing in which the fish harvested, either in whole or in part, are intended to enter commerce or enter commerce through sale, barter, or trade. This includes: 1. The catching, taking, or harvesting of fish; 2. The attempted catching, taking, or harvesting of fish; 3. Any other activity which can reasonably be expected to result in the catching, taking, or harvesting of fish; 4. Any operations at sea in support of, or in preparation for, any activity described in (1) through (3) above; 5. Leasing a fishing vessel, but only if the lease payments are (a) based on a share of the catch (or a share of the proceeds from the sale of the catch) from the lessee’s use of the vessel in a fishing business (not a fixed payment), and (b) determined under a written lease entered into before the lessee begins any significant fishing activities resulting in the catch; and 6. Compensation as a crew member on a vessel engaged in a fishing business, but only if the compensation is based on a share of the catch (or a share of the proceeds from the sale of the catch). Qualified settlement income is any taxable interest and punitive damage awards you received (whether as lump sums or periodic payments) in connection with the Exxon Valdez civil action described above. Qualified settlement income includes all such awards, whether received before or after the judgment and whether related to a settlement or a judgment. Additional Information See Pub. 225 and Regulations section 1.1301-1T for more information. J-1 Cat. No. 25514J Specific Instructions Line 2a Elected Farm Income To figure your elected farm income, first figure your taxable income from farming or fishing. This includes all income, gains, losses, and deductions attributable to your farming or fishing business. If you conduct both farming and fishing businesses, you must figure your elected farm income by combining income, gains, losses, and deductions attributable to your farming and fishing businesses. Elected farm income also includes any gain or loss from the sale or other disposition of property regularly used in your farming or fishing business for a substantial period of time. However, if such gain or loss is realized after cessation of the farming or fishing business, the gain or loss is treated as attributable to a farming or fishing business only if the property is sold within a reasonable time after cessation of the farming or fishing business. A sale or other disposition within one year of the cessation is considered to be within a reasonable time. Elected farm income does not include income, gain, or loss from the sale or other disposition of land or from the sale of development rights, grazing rights, and other similar rights. You should find your income, gains, losses, and deductions from farming or fishing reported on different tax forms, such as: • Form 1040, line 7, or Form 1040NR, line 8, income from wages and other compensation you received (a) as a shareholder in an S corporation engaged in a farming or fishing business or (b) as a crew member on a vessel engaged in a fishing business (but see Fishing business on page J-1); • Form 1040, line 21, or Form 1040NR, line 21, income from Exxon Valdez litigation; • Form 1040, line 27, deduction for one-half of self-employment tax, but only to the extent that deduction is attributable to your farming or fishing business; • Form 1040, line 43, or Form 1040NR, line 40, CCF reduction, except to the extent that any earnings (without regard to the carryback of any net operating or net capital loss) from the operation of agreement vessels in the fisheries of the United States or in the foreign or domestic commerce of the United States are not attributable to your fishing business; • Schedule C or C-EZ; • Schedule D; • Schedule E, Part II; • Schedule F; • Form 4797; and • Form 4835. Your elected farm income is the amount of your taxable income from farming or fishing that you elect to include on line 2a. However, you do not have to include all of your taxable income from farming or fishing on line 2a. It may be to your advantage to include less than the entire amount, depending on how the amount you include on line 2a affects your tax bracket for the current and prior 3 tax years. Your elected farm income cannot exceed your taxable income. complete the worksheet on page J-3 to figure the amount to enter on line 5. If you did not file a tax return for 2006, use the amount you would have reported as your taxable income had you been required to file a tax return. Be sure to keep all your records for 2006 for at least 3 years after April 15, 2010 (or the date you file your 2009 tax return, if later). Instructions for 2006 Taxable Income Worksheet Line 2. Any net capital loss deduction on Lines 2b and 2c Complete lines 2b and 2c if the amount of your elected farm income on line 2a includes net capital gain. Net capital gain is the excess, if any, of net long-term capital gain over net short-term capital loss. Line 2b. Enter on line 2b the portion of your elected farm income on line 2a treated as a net capital gain. The amount you enter on line 2b cannot exceed the smaller of your total net capital gain or the net capital gain attributable to your farming or fishing business. Line 2c. Enter on line 2c the smaller of line 2b or the unrecaptured section 1250 gain attributable to your farming or fishing business, if any. your 2006 Schedule D, line 21, is not allowed for income averaging purposes to the extent it did not reduce your capital loss carryover to 2007. This could happen if the taxable income before subtracting exemptions — shown on your 2006 Form 1040, line 41, or your 2006 Form 1040NR, line 38 (or as previously adjusted) — was less than zero. Enter on line 2 the amount by which your 2006 capital loss carryover to 2007 (the sum of your short- and long-term capital loss carryovers) exceeds the excess of the loss on your 2006 Schedule D, line 16, over the loss on your 2006 Schedule D, line 21. If you had any net operating loss (NOL) carrybacks to 2006, be sure you refigured your 2006 capital loss carryover to 2007. Line 3. If you had an NOL for 2006, enter the amount of that NOL from line 25 of the 2006 Form 1045, Schedule A, you filed with Form 1045 or Form 1040X. If you did not have an NOL for 2006, enter the portion, if any, of the NOL carryovers and carrybacks to 2006 that were not used in 2006 and were carried to years after 2006. Example. John Farmington, who is single, Line 4 Figure the tax on the amount on line 3 using: • The 2009 Tax Table, Tax Computation Worksheet, Qualified Dividends and Capital Gain Tax Worksheet, or Foreign Earned Income Tax Worksheet from the 2009 Instructions for Form 1040 or Form 1040NR; or • The Schedule D Tax Worksheet in the 2009 Instructions for Schedule D. Enter the tax on line 4. Line 5 If you used Schedule J to figure your tax for: • 2008 (that is, you entered the amount from the 2008 Schedule J, line 22, on line 44 of your 2008 Form 1040, on line 41 of your 2008 Form 1040NR, or on Form 1040X for 2008), enter on line 5 the amount from your 2008 Schedule J, line 11. • 2007 but not 2008, enter on line 5 the amount from your 2007 Schedule J, line 15. • 2006 but not 2007 or 2008, enter on line 5 the amount from your 2006 Schedule J, line 3. If you figured your tax for 2006, 2007, and 2008 without using Schedule J, enter on line 5 the taxable income from your 2006 tax return (or as previously adjusted by the IRS, or corrected on an amended return). But if that amount is zero or less, did not use income averaging for 2006, 2007, or 2008. For 2009, John has $18,000 of elected farm income on Schedule J, line 2a. The taxable income before subtracting exemptions on his 2006 Form 1040, line 41, is $4,150. A deduction for exemptions of $3,300 is shown on line 42, and line 43, taxable income, is $850. However, John had a $21,550 NOL for 2007, $9,000 of which was remaining to carry to 2006 after the NOL was carried back to 2005. To complete line 1 of the 2006 Taxable Income Worksheet, John combines the $9,000 NOL deduction with the $850 from his 2006 Form 1040, line 43. The result is a negative $8,150, John’s 2006 taxable income, which he enters as a positive amount on line 1 of the 2006 Taxable Income Worksheet. When John filed his 2006 tax return, he had a $3,000 net capital loss deduction on Schedule D, line 21 (which was also entered on Form 1040, line 13), a $7,000 loss on Schedule D, line 16, and a $4,000 capital loss carryover to 2007. However, when John carried back the 2007 NOL ($9,000 of which was carried to 2006), he refigured his 2006 capital loss carryover to 2007 as $7,000. John adds the $3,000 from Schedule D, line 21, and the $7,000 carryover. He subtracts from the $10,000 result the J-2 $7,000 loss on his Schedule D, line 16, and enters $3,000 on line 2 of the worksheet. John had $850 of taxable income in 2006 that reduced the 2007 NOL carryback. The $3,300 exemption deduction and $3,000 net capital loss deduction also reduced the amount of the 2007 NOL car- ryback. Therefore, only $1,850 was available to carry to 2008 and later years, as shown on line 10 of his 2007 Form 1045, Schedule B. John enters the $1,850 on line 3 of the worksheet, and $4,850 ($1,850 plus the $3,000 line 2 amount) on line 4. He then subtracts the $4,850 from the $8,150 on line 1 and enters the result, $3,300, on line 5 of the worksheet. He enters a negative $3,300 on Schedule J, line 5. He combines that amount with the $6,000 on Schedule J, line 6, and enters $2,700 on Schedule J, line 7. 2006 Taxable Income Worksheet—Line 5 Keep for Your Records Complete this worksheet if you did not use Schedule J to figure your tax for both 2007 and 2008 and your 2006 taxable income was zero or less. See the instructions that begin on page J-2 before completing this worksheet. 1. Figure the taxable income from your 2006 tax return (or as previously adjusted) without limiting it to zero. If you had an NOL for 2006, do not include any NOL carryovers or carrybacks to 2006. Enter the result as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. If there is a loss on your 2006 Schedule D, line 21, add that loss (as a positive amount) and your 2006 capital loss carryover to 2007. Subtract from that sum the amount of the loss on your 2006 Schedule D, line 16, and enter the result . . . . . . . 2. 3. If you had an NOL for 2006, enter it as a positive amount. Otherwise, enter as a positive amount the portion, if any, of the NOL carryovers and carrybacks to 2006 that were not used in 2006 and were carried to years after 2006 . . . . . . . . . . . . . . 3. 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 5 . . . . . . . . . . . 1. 4. 5. J-3 Line 8 If line 7 is zero, enter -0- on line 8. Otherwise, figure the tax on the amount on line 7 using: • The 2006 Tax Rate Schedules below, • The 2006 Qualified Dividends and Capital Gain Tax Worksheet on the next page, • The 2006 Schedule D Tax Worksheet in the 2006 Schedule D instructions (but use the 2006 Tax Rate Schedules below when figuring the tax on lines 34 and 36 of the Schedule D Tax Worksheet), or • The 2006 Foreign Earned Income Tax Worksheet below. If your elected farm income includes net capital gain, you must use the 2006 Schedule D Tax Worksheet to figure the tax on the amount on line 7. However, if you filed Form 2555 or 2555-EZ for 2006, you must first complete the 2006 Foreign Earned Income Tax Worksheet, and then use the 2006 Schedule D Tax Worksheet to figure the tax on the amount on line 5 of that worksheet. When completing the Schedule D Tax Worksheet, you must allocate 1/3 of the amount on line 2b (and 1/3 of the amount on line 2c, if any) to 2006. If for 2006 you had a capital loss that resulted in a capital loss carryover to 2007, do not reduce the elected farm income allocated to 2006 by any part of the carryover. 2006 Tax Rate Schedules—Line 8 Schedule X — Use if your 2006 filing status was Single or you checked filing status box 1 or 2 on Form 1040NR If Schedule J, line 7, is: Over — $0 7,550 30,650 74,200 154,800 336,550 Schedule Y-2 — Use if your 2006 filing status was Married filing separately or you checked filing status box 3, 4, or 5 on Form 1040NR If Schedule J, line 7, is: Over — $0 7,550 30,650 61,850 94,225 168,275 But not over — $7,550 30,650 74,200 154,800 336,550 ............. Enter on Schedule J, line 8 ........... $755.00 + 4,220.00 + 15,107.50 + 37,675.50 + 97,653.00 + 10% 15% 25% 28% 33% 35% of the amount over — $0 7,550 30,650 74,200 154,800 336,550 But not over — $7,550 30,650 61,850 94,225 168,275 ............. Enter on Schedule J, line 8 ........... $755.00 + 4,220.00 + 12,020.00 + 21,085.00 + 45,521.50 + 10% 15% 25% 28% 33% 35% of the amount over — $0 7,550 30,650 61,850 94,225 168,275 Schedule Y-1 — Use if your 2006 filing status was Married filing jointly or Qualifying widow(er) or you checked filing status box 6 on Form 1040NR Schedule Z — Use if your 2006 filing status was Head of household If Schedule J, line 7, is: Over — $0 15,100 61,300 123,700 188,450 336,550 But not over — $15,100 61,300 123,700 188,450 336,550 ............ Enter on Schedule J, line 8 ........... $1,510.00 + 8,440.00 + 24,040.00 + 42,170.00 + 91,043.00 + 10% 15% 25% 28% 33% 35% of the amount over — $0 15,100 61,300 123,700 188,450 336,550 If Schedule J, line 7, is: Over — $0 10,750 41,050 106,000 171,650 336,550 But not over — $10,750 41,050 106,000 171,650 336,550 ............. Enter on Schedule J, line 8 ........... $1,075.00 + 5,620.00 + 21,857.50 + 40,239.50 + 94,656.50 + 10% 15% 25% 28% 33% 35% of the amount over — $0 10,750 41,050 106,000 171,650 336,550 2006 Foreign Earned Income Tax Worksheet—Line 8 Keep for Your Records Use this worksheet if you claimed the foreign earned income exclusion or the housing exclusion on your 2006 Form 1040 using Form 2555 or Form 2555-EZ. 1. Enter the amount from your 2009 Schedule J, line 7 . . . . . . . . . . . . . . . . . . . . 1. 2. Enter the amount from your (and your spouse’s, if filing jointly) 2006 Form 2555, line 45, or Form 2555-EZ, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Enter the total amount of any itemized deductions you could not claim in 2006 because they were related to excluded income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 4. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . 4. 5. Combine lines 1 and 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . 5. 6. Tax on amount on line 5. Use the 2006 Tax Rate Schedules above, the 2006 Schedule D Tax Worksheet,* or the 2006 Qualified Dividends and Capital Gain Tax Worksheet,* whichever applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Tax on amount on line 4. Use the 2006 Tax Rate Schedules above . . . . . . . . . . . . . . . . . . . . . . . 8. Subtract line 7 from line 6. Enter the result here and on your 2009 Schedule J, line 8 . . . . . . . . . . 6. 7. 8. *Enter the amount from line 5 above on line 1 of the 2006 Qualified Dividends and Capital Gain Tax Worksheet on page J-5 or the 2006 Schedule D Tax Worksheet in the 2006 Schedule D instructions if you use either of those worksheets to figure the tax on line 6 above. Complete the rest of either of those worksheets according to the worksheet’s instructions. Then complete lines 7 and 8 above. J-4 2006 Qualified Dividends and Capital Gain Tax Worksheet—Line 8 Keep for Your Records Use this worksheet only if both of the following apply. • Your elected farm income on your 2009 Schedule J, line 2a, does not include any net capital gain. • You (a) entered qualified dividends on your 2006 Form 1040, line 9b (or your 2006 Form 1040A, line 9b, or 2006 Form 1040NR, line 10b); (b) entered capital gain distributions directly on your 2006 Form 1040, line 13 (or your 2006 Form 1040A, line 10, or 2006 Form 1040NR, line 14) and were not required to file Schedule D; or (c) filed Schedule D in 2006 and you answered “Yes” on lines 17 and 20 of that Schedule D. 1. Amount from your 2009 Schedule J, line 7. If for 2006 you filed Form 2555 or 2555-EZ, enter the amount from line 5 of the worksheet on page J-4 . . . . . . . . . 1. 2. Amount from your 2006 Form 1040, line 9b (or your 2006 Form 1040A, line 9b, or 2006 Form 1040NR, line 10b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Did you file Schedule D in 2006? Yes. Enter the smaller of line 15 or 16 of your 2006 Schedule D, but do not enter less than -03. No. Enter the amount from your 2006 Form 1040, line 13 (or your 2006 Form 1040A, line 10, or 2006 Form 1040NR, line 14) 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Amount, if any, from your 2006 Form 4952, line 4g . . . . 5. 6. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 6. 7. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 7. 8. Enter the smaller of: • The amount on line 1, or • $30,650 if single or married filing separately or if you checked filing status box 1, 2, 3, 4, or 5 on Form 1040NR; . . . . . . . . . . . 8. $61,300 if married filing jointly or qualifying widow(er), or if you checked filing status box 6 on Form 1040NR; $41,050 if head of household. 9. Is the amount on line 7 equal to or more than the amount on line 8? Yes. Skip lines 9 through 11; go to line 12 and check the ‘‘No’’ box. No. Enter the amount from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 10. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 11. Multiply line 10 by 5% (.05) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. Are the amounts on lines 6 and 10 the same? Yes. Skip lines 12 through 15; go to line 16. No. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. 13. Enter the amount from line 10 (if line 10 is blank, enter -0-) . . . . . . . . . . . . . . . 13. 14. Subtract line 13 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. 15. Multiply line 14 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. Figure the tax on the amount on line 7. Use the 2006 Tax Rate Schedules on page J-4 . . . . . . . . . . 17. Add lines 11, 15, and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. Figure the tax on the amount on line 1. Use the 2006 Tax Rate Schedules on page J-4 . . . . . . . . . . 19. Tax. Enter the smaller of line 17 or line 18 here and on your 2009 Schedule J, line 8. If for 2006 you filed Form 2555 or 2555-EZ, do not enter this amount on Schedule J, line 8. Instead, enter it on line 6 of the worksheet on page J-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } } . 11. . 15. . 16. . 17. . 18. . 19. J-5 Line 9 If you used Schedule J to figure your tax for: • 2008 (that is, you entered the amount from the 2008 Schedule J, line 22, on line 44 of your 2008 Form 1040, on line 41 of 2008 Form 1040NR, or on Form 1040X for 2008), enter on line 9 the amount from your 2008 Schedule J, line 15. • 2007 but not 2008, enter on line 9 the amount from your 2007 Schedule J, line 3. If you figured your tax for both 2007 and 2008 without using Schedule J, enter on line 9 the taxable income from your 2007 tax return (or as previously adjusted by the IRS or corrected on an amended return). But if that amount is zero or less, complete the worksheet below to figure the amount to enter on line 9. If you did not file a tax return for 2007, use the amount you would have reported as your taxable income had you been required to file a tax return. Be sure to keep all your records for 2007 until at least 3 years after April 15, 2010 (or the date you file your 2009 tax return, if later). Instructions for 2007 Taxable Income Worksheet Line 2. Any net capital loss deduction on your 2007 Schedule D, line 21, is not allowed for income averaging purposes to the extent it did not reduce your capital loss carryover to 2008. This could happen if the taxable income before subtracting exemptions — shown on your 2007 Form 1040, line 41, or your 2007 Form 1040NR, line 38 (or as previously adjusted) — was less than zero. Enter on line 2 the amount by which your 2007 capital loss carryover to 2008 (the sum of your short- and long-term capital loss carryovers) exceeds the excess of the loss on your 2007 Schedule D, line 16, over the loss on your 2007 Schedule D, line 21. If you had any NOL carrybacks to 2007, be sure you refigured your 2007 capital loss carryover to 2008. Line 3. If you had an NOL for 2007, enter the amount of that NOL from line 25 of the 2007 Form 1045, Schedule A, you filed with Form 1045 or Form 1040X. If you did not have an NOL for 2007, enter the portion, if any, of the NOL carryovers and carrybacks to 2007 that were not used in 2007 and were carried to years after 2007. Example. John Farmington did not use income averaging for 2006, 2007, or 2008. The taxable income before subtracting exemptions on his 2007 Form 1040, line 41, is a negative $29,900. A deduction for exemptions of $3,400 is shown on line 42, and line 43, taxable income, is limited to zero. John subtracts from the $29,900 loss the $3,400 deduction for exemptions. The result is a negative $33,300, John’s 2007 taxable income, which he enters as a positive amount on line 1 of the 2007 Taxable Income Worksheet. When John filed his 2007 tax return, he had a $3,000 net capital loss deduction on Schedule D, line 21 (which was also entered on Form 1040, line 13), and a $7,000 loss on Schedule D, line 16 (as adjusted). He also had a $7,000 capital loss carryover to 2008. John adds the $3,000 from Schedule D, line 21, and the $7,000 carryover. He subtracts from the $10,000 result the $7,000 loss on his Schedule D, line 16, and enters $3000 on line 2 of the worksheet. John enters $21,550 on line 3 of the worksheet, the 2007 NOL from his 2007 Form 1045, Schedule A, line 25. Of the $33,300 negative taxable income, the $3,400 deduction for exemptions, the $3,000 capital loss deduction, and his $5,350 standard deduction were not allowed in figuring the NOL. John had a $21,550 loss on his 2007 Schedule F, the only other item on his 2007 tax return. John enters $24,550 (the $3,000 line 2 amount plus the $21,550 line 3 amount) on line 4 and $8,750 (the $33,300 line 1 amount minus the $24,550 line 4 amount) on line 5. He enters $8,750 as a negative amount on Schedule J, line 9. He enters $6,000 on Schedule J, line 10, and a negative $2,750 on Schedule J, line 11. If he uses Schedule J to figure his tax for 2010, he will enter the negative $2,750 amount on his 2010 Schedule J as his 2007 taxable income for income averaging purposes. 2007 Taxable Income Worksheet—Line 9 Keep for Your Records Complete this worksheet if you did not use Schedule J to figure your tax for 2008 and your 2007 taxable income was zero or less. See the instructions above before completing this worksheet. 1. Figure the taxable income from your 2007 tax return (or as previously adjusted) without limiting it to zero. If you had an NOL for 2007, do not include any NOL carryovers or carrybacks to 2007. Enter the result as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. If there is a loss on your 2007 Schedule D, line 21, add that loss (as a positive amount) and your 2007 capital loss carryover to 2008. Subtract from that sum the amount of the loss on your 2007 Schedule D, line 16, and enter the result . . . . . . 2. 3. If you had an NOL for 2007, enter it as a positive amount. Otherwise, enter as a positive amount the portion, if any, of the NOL carryovers and carrybacks to 2007 that were not used in 2007 and were carried to years after 2007 . . . . . . . . . . . . . 3. 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 9 . . . . . . . . . . . 1. 4. 5. J-6 Line 12 If line 11 is zero or less, enter -0- on line 12. Otherwise, figure the tax on the amount on line 11 using: • The 2007 Tax Rate Schedules below, • The 2007 Qualified Dividends and Capital Gain Tax Worksheet on page J-8, • The 2007 Schedule D Tax Worksheet in the 2007 Schedule D instructions (but use the 2007 Tax Rate Schedules below when figuring the tax on the Schedule D Tax Worksheet, lines 34 and 36), or • The 2007 Foreign Earned Income Tax Worksheet on page J-9. If your elected farm income includes net capital gain, you must use the 2007 Schedule D Tax Worksheet to figure the tax on the amount on line 11. However, if you filed Form 2555 or 2555-EZ for 2007, you must first complete the 2007 Foreign Earned Income Tax Worksheet, and then use the 2007 Schedule D Tax Worksheet to figure the tax on the amount on line 3 of that worksheet. When completing the Schedule D Tax Worksheet, you must allocate 1/3 of the amount on line 2b (and 1/3 of the amount on line 2c, if any) to 2007. If for 2007 you had a capital loss that resulted in a capital loss carryover to 2008, do not reduce the elected farm income allocated to 2007 by any part of the carryover. 2007 Tax Rate Schedules—Line 12 Schedule X — Use if your 2007 filing status was Single or you checked filing status box 1 or 2 on Form 1040NR If Schedule J, line 11, is: Over — $0 7,825 31,850 77,100 160,850 349,700 Keep for Your Records Schedule Y-2 — Use if your 2007 filing status was Married filing separately or you checked filing status box 3, 4, or 5 on Form 1040NR If Schedule J, line 11, is: Over — $0 7,825 31,850 64,250 97,925 174,850 But not over — $7,825 31,850 77,100 160,850 349,700 ............. Enter on Schedule J, line 12 ........... $782.50 + 4,386.25 + 15,698.75 + 39,148.75 + 101,469.25 + 10% 15% 25% 28% 33% 35% of the amount over — $0 7,825 31,850 77,100 160,850 349,700 But not over — $7,825 31,850 64,250 97,925 174,850 ............. Enter on Schedule J, line 12 ........... $782.50 + 4,386.25 + 12,486.25 + 21,915.25 + 47,300.50 + 10% 15% 25% 28% 33% 35% of the amount over — $0 7,825 31,850 64,250 97,925 174,850 Schedule Y-1 — Use if your 2007 filing status was Married filing jointly or Qualifying widow(er) or you checked filing status box 6 on Form 1040NR If Schedule J, line 11, is: Over — $0 15,650 63,700 128,500 195,850 349,700 Schedule Z — Use if your 2007 filing status was Head of household If Schedule J, line 11, is: Over — $0 11,200 42,650 110,100 178,350 349,700 But not over — $15,650 63,700 128,500 195,850 349,700 ............ Enter on Schedule J, line 12 ........... $1,565.00 + 8,772.50 + 24,972.50+ 43,830.50 + 94,601.00 + 10% 15% 25% 28% 33% 35% of the amount over — $0 15,650 63,700 128,500 195,850 349,700 But not over — $11,200 42,650 110,100 178,350 349,700 ............. Enter on Schedule J, line 12 ........... $1,120.00 + 5,837.50 + 22,700.00 + 41,810.00 + 98,355.50 + 10% 15% 25% 28% 33% 35% of the amount over — $0 11,200 42,650 110,100 178,350 349,700 J-7 2007 Qualified Dividends and Capital Gain Tax Worksheet—Line 12 Keep for Your Records Use this worksheet only if both of the following apply. • Your elected farm income on your 2009 Schedule J, line 2a, does not include any net capital gain. • You (a) entered qualified dividends on your 2007 Form 1040, line 9b (or your 2007 Form 1040A, line 9b, or 2007 Form 1040NR, line 10b); (b) entered capital gain distributions directly on your 2007 Form 1040, line 13 (or your 2007 Form 1040A, line 10, or 2007 Form 1040NR, line 14) and were not required to file Schedule D; or (c) filed Schedule D in 2007 and you answered “Yes” on lines 17 and 20 of that Schedule D. 1. Amount from your 2009 Schedule J, line 11. If for 2007 you filed Form 2555 or 2555-EZ, enter the amount from line 3 of the worksheet on page J-9 . . . . . . . . . 1. 2. Amount from your 2007 Form 1040, line 9b* (or your 2007 Form 1040A, line 9b, or 2007 Form 1040NR, line 10b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Did you file Schedule D in 2007?* Yes. Enter the smaller of line 15 or 16 of your 2007 Schedule D, but do not enter less than -03. No. Enter the amount from your 2007 Form 1040, line 13 (or your 2007 Form 1040A, line 10, or 2007 Form 1040NR, line 14) 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Amount, if any, from your 2007 Form 4952, line 4g . . . . 5. 6. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 6. 7. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 7. 8. Enter the smaller of: • The amount on line 1, or • $31,850 if single or married filing separately or if you checked filing status box 1, 2, 3, 4, or 5 on Form 1040NR; . . . . . . . . . . . 8. $63,700 if married filing jointly or qualifying widow(er) or if you checked filing status box 6 on Form 1040NR; $42,650 if head of household. 9. Is the amount on line 7 equal to or more than the amount on line 8? Yes. Skip lines 9 through 11; go to line 12 and check the ‘‘No’’ box. No. Enter the amount from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 10. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 11. Multiply line 10 by 5% (.05) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. 12. Are the amounts on lines 6 and 10 the same? Yes. Skip lines 12 through 15; go to line 16. No. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. 13. Enter the amount from line 10 (if line 10 is blank, enter -0-) . . . . . . . . . . . . . . . 13. 14. Subtract line 13 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. 15. Multiply line 14 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. 16. Figure the tax on the amount on line 7. Use the 2007 Tax Rate Schedules on page J-7 . . . . . . . . . . . 16. 17. Add lines 11, 15, and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. 18. Figure the tax on the amount on line 1. Use the 2007 Tax Rate Schedules on page J-7 . . . . . . . . . . . 18. 19. Tax. Enter the smaller of line 17 or line 18 here and on your 2009 Schedule J, line 12. If for 2007 you filed Form 2555 or 2555-EZ, do not enter this amount on Schedule J, line 12. Instead, enter it on line 4 of the worksheet on page J-9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. } } *If for 2007 you filed Form 2555 or 2555-EZ, see the footnote in the worksheet on page J-9 before completing this line. J-8 2007 Foreign Earned Income Tax Worksheet—Line 12 Keep for Your Records Use this worksheet if you claimed the foreign earned income exclusion or housing exclusion on your 2007 Form 1040 using Form 2555 or 2555-EZ. However, if Schedule J, line 11, is zero or less do not complete this worksheet. 1. Enter the amount from your 2009 Schedule J, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Enter the amount from your (and your spouse’s, if filing jointly) 2007 Form 2555, line 45, or Form 2555-EZ, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Tax on the amount on line 3. Use the 2007 Tax Rate Schedules on page J-7, the 2007 Qualified Dividends and Capital Gain Tax Worksheet on page J-8,* or the 2007 Schedule D Tax Worksheet in the 2007 Schedule D instructions,* whichever applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Tax on the amount on line 2. Use the 2007 Tax Rate Schedules on page J-7. . . . . . . . . . . . . . . . . . . . . . . . 6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on your 2009 Schedule J, line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. 3. 4. 5. 6. *Enter the amount from line 3 above on line 1 of the 2007 Qualified Dividends and Capital Gain Tax Worksheet or the 2007 Schedule D Tax Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Next, you must determine if you had a capital gain excess. To find out if you had a capital gain excess, subtract the amount from your 2009 Schedule J, line 11, from line 6 of your 2007 Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your 2007 Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess. If you did not have a capital gain excess, complete the rest of either of those worksheets according to the worksheet’s instructions. Then complete lines 5 and 6 above. If you had a capital gain excess, complete a second 2007 Qualified Dividends and Capital Gain Tax Worksheet or 2007 Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5 and 6 above. These modifications are to be made only for purposes of filling out the 2007 Foreign Earned Income Tax Worksheet above. 1. Reduce the amount you would otherwise enter on line 3 of your 2007 Qualified Dividends and Capital Gain Tax Worksheet or line 9 of your 2007 Schedule D Tax Worksheet (but not below zero) by your capital gain excess. 2. Reduce the amount you would otherwise enter on your 2007 Form 1040, line 9b, (but not below zero) by any of your capital gain excess not used in (1) above. 3. Reduce the amount on your 2007 Schedule D (Form 1040), line 18, (but not below zero) by your capital gain excess. 4. Include your capital gain excess as a loss on line 16 of your 2007 Unrecaptured Section 1250 Gain Worksheet on page D-9 of the 2007 Instructions for Schedule D (Form 1040). J-9 Line 13 If you used Schedule J to figure your tax for 2008 (that is, you entered the amount from the 2008 Schedule J, line 22, on line 44 of your 2008 Form 1040, on line 41 of your 2008 Form 1040NR, or on Form 1040X for 2008), enter on line 13 the amount from your 2008 Schedule J, line 3. If you did not use Schedule J to figure your tax for 2008, enter on line 13 the taxable income from your 2008 tax return (or as previously adjusted by the IRS or corrected on an amended return). But if that amount is zero or less, complete the worksheet below to figure the amount to enter on line 13. If you did not file a tax return for 2008, use the amount you would have reported as your taxable income had you been required to file a tax return. Be sure to keep all your records for 2008 until at least 3 years after April 15, 2010 (or the date you file your 2009 tax return, if later). Instructions for 2008 Taxable Income Worksheet Line 2. Any net capital loss deduction on your 2008 Schedule D, line 21, is not allowed for income averaging purposes to the extent it did not reduce your capital loss carryover to 2009. This could happen if the taxable income before subtracting exemptions — shown on your 2008 Form 1040, line 41, or your 2008 Form 1040NR, line 38 (or as previously adjusted) — was less than zero. Enter on line 2 the amount by which your 2008 capital loss carryover to 2009 (the sum of your short- and long-term capital loss carryovers) exceeds the excess of the loss on your 2008 Schedule D, line 16, over the loss on your 2008 Schedule D, line 21. Line 3. If you had an NOL for 2008, enter the amount of that NOL from line 25 of the 2008 Form 1045, Schedule A, you filed with Form 1045 or Form 1040X. If you did not have an NOL for 2008, enter the por- tion, if any, of the NOL carryovers and carrybacks to 2008 that were not used in 2008 and were carried to years after 2008. Example. John Farmington did not use income averaging for 2006, 2007, or 2008. The taxable income before subtracting exemptions on his 2008 Form 1040, line 41, is a negative $1,000. This amount includes an NOL deduction on his 2008 Form 1040, line 21, of $1,850. The $1,850 is the portion of the 2007 NOL that was remaining from 2006 to be carried to 2008. See the examples on pages J-2 and J-6. A deduction for exemptions of $3,500 is shown on Form 1040, line 42, and line 43, taxable income, is limited to zero. John does not have an NOL for 2008. John subtracts from the $1,000 negative amount on Form 1040, line 41, the $3,500 deduction for exemptions. The result is a negative $4,500, John’s 2008 taxable income, which he enters as a positive amount on line 1 of the 2008 Taxable Income Worksheet. When John filed his 2008 tax return, he had a $3,000 net capital loss deduction on Schedule D, line 21 (which was also entered on Form 1040, line 13), a $7,000 loss on Schedule D, line 16, and a $5,000 capital loss carryover to 2009 (his 2008 capital loss carryover to 2009 was $5,000, not $4,000, because the amount on his Form 1040, line 41, was a negative $1,000). John adds the $3,000 from Schedule D, line 21, and the $5,000 carryover. He subtracts from the $8,000 result the $7,000 loss on his Schedule D, line 16, and enters $1,000 on line 2 of the worksheet. John enters -0- on line 3 of the worksheet because he does not have an NOL for 2008 and did not have an NOL carryover from 2008 available to carry to 2009 and later years. The NOL deduction for 2008 of $1,850 was reduced to zero because it did not exceed his modified taxable income of $3,850. Modified taxable income is figured by adding back the $3,000 net capital loss deduction and the $3,500 exemption deduction to negative taxable income (figured without regard to the NOL deduction) of $2,650. John enters $1,000 on line 4 and $3,500 on line 5. He enters $3,500 as a negative amount on Schedule J, line 13. He enters $6,000 on Schedule J, line 14, and $2,500 on Schedule J, line 15. If he uses Schedule J to figure his tax for 2010, he will enter $2,500 on his 2010 Schedule J as his 2008 taxable income for income averaging purposes. Line 16 If line 15 is zero or less, enter -0- on line 16. Otherwise, figure the tax on the amount on line 15 using: • The 2008 Tax Rate Schedules on page J-11, • The 2008 Qualified Dividends and Capital Gain Tax Worksheet on page J-12, • The 2008 Schedule D Tax Worksheet in the 2008 Schedule D instructions (but use the 2008 Tax Rate Schedules on page J-11 when figuring the tax on the Schedule D Tax Worksheet, lines 33 and 35), or • The 2008 Foreign Earned Income Tax Worksheet on page J-13. If your elected farm income includes net capital gain, you must use the 2008 Schedule D Tax Worksheet to figure the tax on the amount on line 15. However, if you filed Form 2555 or 2555-EZ for 2008, you must first complete the 2008 Foreign Earned Income Tax Worksheet, and then use the 2008 Schedule D Tax Worksheet to figure the tax on the amount on line 3 of that worksheet. When completing the Schedule D Tax Worksheet, you must allocate 1/3 of the amount on line 2b (and 1/3 of the amount on line 2c, if any) to 2008. If for 2008 you had a capital loss that resulted in a capital loss carryover to 2009, do not reduce the elected farm income allocated to 2008 by any part of the carryover. 2008 Taxable Income Worksheet—Line 13 Keep for Your Records Complete this worksheet if your 2008 taxable income was zero or less. See the instructions above before completing this worksheet. 1. Figure the taxable income from your 2008 tax return (or as previously adjusted) without limiting it to zero. If you had an NOL for 2008, do not include any NOL carryovers or carrybacks to 2008. Enter the result as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. If there is a loss on your 2008 Schedule D, line 21, add that loss (as a positive amount) and your 2008 capital loss carryover to 2009. Subtract from that sum the amount of the loss on your 2008 Schedule D, line 16, and enter the result . . . . . . 2. 3. If you had an NOL for 2008, enter it as a positive amount. Otherwise, enter as a positive amount the portion, if any, of the NOL carryovers and carrybacks to 2008 that were not used in 2008 and were carried to years after 2008 . . . . . . . . . . . . . 3. 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 13 . . . . . . . . . . 1. 4. 5. J-10 2008 Tax Rate Schedules—Line 16 Schedule X — Use if your 2008 filing status was Single or you checked filing status box 1 or 2 on Form 1040NR If Schedule J, line 15, is: But not Over — over — $0 8,025 32,550 78,850 164,550 357,700 $8,025 32,550 78,850 164,550 357,700 ............. Enter on Schedule J, line 16 ........... $802.50 + 4,481.25 + 16,056.25 + 40,052.25 + 103,791.75 + 10% 15% 25% 28% 33% 35% Schedule Y-2 — Use if your 2008 filing status was Married filing separately or you checked filing status box 3, 4, or 5 on Form 1040NR If Schedule J, line 15, is: Over — $0 8,025 32,550 65,725 100,150 178,850 of the amount over — $0 8,025 32,550 78,850 164,550 357,700 But not over — $8,025 32,550 65,725 100,150 178,850 ............. Enter on Schedule J, line 16 ........... $802.50 + 4,481.25 + 12,775.00 + 22,414.00 + 48,385.00 + 10% 15% 25% 28% 33% 35% of the amount over — $0 8,025 32,550 65,725 100,150 178,850 Schedule Y-1 — Use if your 2008 filing status was Married filing jointly or Qualifying widow(er) or you checked filing status box 6 on Form 1040NR If Schedule J, line 15, is: But not Over — over — $0 16,050 65,100 131,450 200,300 357,700 $16,050 65,100 131,450 200,300 357,700 ............ Enter on Schedule J, line 16 ........... $1,605.00 + 8,962.50 + 25,550.00 + 44,828.00 + 96,770.00 + 10% 15% 25% 28% 33% 35% Schedule Z — Use if your 2008 filing status was Head of household If Schedule J, line 15, is: Over — $0 11,450 43,650 112,650 182,400 357,700 of the amount over — $0 16,050 65,100 131,450 200,300 357,700 But not over — $11,450 43,650 112,650 182,400 357,700 ............. Enter on Schedule J, line 16 ........... $1,145.00 + 5,975.00 + 23,225.00 + 42,755.00 + 100,604.00 + 10% 15% 25% 28% 33% 35% of the amount over — $0 11,450 43,650 112,650 182,400 357,700 J-11 2008 Qualified Dividends and Capital Gain Tax Worksheet—Line 16 Keep for Your Records Use this worksheet only if both of the following apply. • Your elected farm income on your 2009 Schedule J, line 2a, does not include any net capital gain. • You (a) entered qualified dividends on your 2008 Form 1040, line 9b (or your 2008 Form 1040A, line 9b, or 2008 Form 1040NR, line 10b); (b) entered capital gain distributions directly on your 2008 Form 1040, line 13 (or your 2008 Form 1040A, line 10, or 2008 Form 1040NR, line 14) and were not required to file Schedule D; or (c) filed Schedule D in 2008 and you answered “Yes” on lines 17 and 20 of that Schedule D. 1. Amount from your 2009 Schedule J, line 15. If for 2008 you filed Form 2555 or 2555-EZ, enter the amount from line 3 of the worksheet on page J-13 . . . . . . . . 1. 2. Amount from your 2008 Form 1040, line 9b* (or your 2008 Form 1040A, line 9b, or 2008 Form 1040NR, line 10b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Did you file Schedule D in 2008?* Yes. Enter the smaller of line 15 or 16 of your 2008 Schedule D, but do not enter less than -03. No. Enter the amount from your 2008 Form 1040, line 13 (or your 2008 Form 1040A, line 10, or 2008 Form 1040NR, line 14) 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Amount, if any, from your 2008 Form 4952, line 4g . . . 5. 6. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 6. 7. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 7. 8. Enter the smaller of: • The amount on line 1, or • $32,550 if single or married filing separately, or if you checked filing status box 1, 2, 3, 4, or 5 on Form 1040NR; . . . . . . . . . . . 8. $65,100 if married filing jointly or qualifying widow(er) or if you checked filing status box 6 on Form 1040NR; $43,650 if head of household. 9. Is the amount on line 7 equal to or more than the amount on line 8? Yes. Skip lines 9 and 10; go to line 11 and check the ‘‘No’’ box. No. Enter the amount from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 10. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 11. Are the amounts on lines 6 and 10 the same? Yes. Skip lines 11 through 14; go to line 15. No. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. 12. Enter the amount from line 10 (if line 10 is blank, enter -0-) . . . . . . . . . . . . . . . 12. 13. Subtract line 12 from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. 14. Multiply line 13 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. 15. Figure the tax on the amount on line 7. Use the 2008 Tax Rate Schedules on page J-11 . . . . . . . . . . 15. 16. Add lines 14 and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. 17. Figure the tax on the amount on line 1. Use the 2008 Tax Rate Schedules on page J-11 . . . . . . . . . . 17. 18. Tax. Enter the smaller of line 16 or line 17 here and on your 2009 Schedule J, line 16. If for 2008 you filed Form 2555 or 2555-EZ, do not enter this amount on Schedule J, line 16. Instead, enter it on line 4 of the worksheet on page J-13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. } } *If for 2008 you filed Form 2555 or 2555-EZ, see the footnote in the worksheet on page J-13 before completing this line. J-12 2008 Foreign Earned Income Tax Worksheet—Line 16 Keep for Your Records Use this worksheet if you claimed the foreign earned income exclusion or housing exclusion on your 2008 Form 1040 using Form 2555 or 2555-EZ. However, if Schedule J, line 15, is zero or less do not complete this worksheet. 1. Enter the amount from your 2009 Schedule J, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Enter the amount from your (and your spouse’s, if filing jointly) 2008 Form 2555, lines 45 and 50, or Form 2555-EZ, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Tax on the amount on line 3. Use the 2008 Tax Rate Schedules on page J-11, the 2008 Qualified Dividends and Capital Gain Tax Worksheet on page J-12,* or the 2008 Schedule D Tax Worksheet in the 2008 Schedule D instructions,* whichever applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Tax on the amount on line 2. Use the 2008 Tax Rate Schedules on page J-11. . . . . . . . . . . . . . . . . . . . . . . 6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on your 2009 Schedule J, line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 2. 3. 4. 5. 6. *Enter the amount from line 3 above on line 1 of the 2008 Qualified Dividends and Capital Gain Tax Worksheet or the 2008 Schedule D Tax Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Next, you must determine if you had a capital gain excess. To find out if you had a capital gain excess, subtract the amount from your 2009 Schedule J, line 15, from line 6 of your 2008 Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your 2008 Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess. If you did not have a capital gain excess, complete the rest of either of those worksheets according to the worksheet’s instructions. Then complete lines 5 and 6 above. If you had a capital gain excess, complete a second 2008 Qualified Dividends and Capital Gain Tax Worksheet or 2008 Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5 and 6 above. These modifications are to be made only for purposes of filling out the 2008 Foreign Earned Income Tax Worksheet above. 1. Reduce the amount you would otherwise enter on line 3 of your 2008 Qualified Dividends and Capital Gain Tax Worksheet or line 9 of your 2008 Schedule D Tax Worksheet (but not below zero) by your capital gain excess. 2. Reduce the amount you would otherwise enter on your 2008 Form 1040, line 9b, (but not below zero) by any of your capital gain excess not used in (1) above. 3. Reduce the amount on your 2008 Schedule D (Form 1040), line 18, (but not below zero) by your capital gain excess. 4. Include your capital gain excess as a loss on line 16 of your 2008 Unrecaptured Section 1250 Gain Worksheet on page D-9 of the 2008 Instructions for Schedule D (Form 1040). Lines 19, 20, and 21 If you amended your return or the IRS made changes to it, enter the corrected amount. J-13 Schedule L (Form 1040A or 1040) 2009 Page 2 General Instructions Who must use Schedule L. You must use Schedule L to figure your standard deduction if you have any of the following. ● State or local real estate taxes you paid in 2009. ● A net disaster loss you report on Form 4684, line 18 (Form 1040 filers only). ● State or local sales or excise taxes (or certain other taxes or fees in a state without a sales tax) paid after February 16, 2009, for the purchase of any new motor vehicle(s). Note. See your tax return instruction booklet to figure your standard deduction if you are not claiming any of the items listed above. If you checked the box on Form 1040, line 39b, or Form 1040A, line 23b, your standard CAUTION deduction is zero, even if you were born before January 2, 1945, were blind, paid real estate taxes, had a net disaster loss, or paid new motor vehicle taxes. Specific Instructions Line 3. Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any amount received as a scholarship that you must include in your income. Form 1040 filers. Generally, your earned income is the total of the amount(s) you reported on Form 1040, lines 7, 12, and 18, minus the amount, if any, on line 27. Form 1040A filers. Generally, your earned income is the amount you reported on Form 1040A, line 7. Line 6. Your standard deduction is increased by your net disaster loss. This amount is shown on Form 4684, line 18. You must file Form 1040 to claim a net disaster loss. Line 7. Enter the state and local real estate taxes you paid in 2009. Include state and local taxes you paid on real estate you own, but only if the taxes are based on the assessed value of the property. Also, the assessment must be made uniformly on property throughout the community, and the proceeds must be used for general community or governmental purposes. See Pub. 530 for more information. Do not include the following amounts as real estate taxes. ● Taxes deductible in arriving at adjusted gross income (such as taxes on business real estate) and taxes on foreign real estate. ● Itemized charges for services to specific property or persons (for example, a $20 monthly charge per house for trash collection, a $5 charge for every 1,000 gallons of water consumed, or a flat charge for mowing a lawn that had grown higher than permitted under a local ordinance). ● Charges for improvements that tend to increase the value of your property (for example, an assessment to build a new sidewalk). The cost of a property improvement is added to the basis of the property. However, a charge is deductible if it is used only to maintain an existing public facility in service (for example, a charge to repair an existing sidewalk, and any interest included in that charge). If your mortgage payments include your real estate taxes, you can deduct only the amount the mortgage company actually paid to the taxing authority in 2009. If you sold your home in 2009, any real estate tax charged to the buyer should be shown on your settlement statement and in box 5 of any Form 1099-S you received. This amount is considered a refund of real estate taxes. See Refunds and rebates next. Any real estate taxes you paid at closing should be shown on your settlement statement. Refunds and rebates. If you received a refund or rebate in 2009 of real estate taxes you paid in 2009, reduce the amount you enter on line 7 by the amount of the refund or rebate. If you received a refund or rebate in 2009 of real estate taxes you paid in an earlier year, do not reduce your deduction by this amount. Instead, you must include the refund or rebate in income on Form 1040, line 21, if you deducted the real estate taxes in the earlier year and the deduction reduced your tax. See Recoveries in Pub. 525 for details on how to figure the amount to include in income. Line 10. If you check the “Yes” box, you may be able to include some or all of the state or local sales and excise taxes you paid for any new motor vehicle(s) (defined below) purchased after February 16, 2009. However, if the amount on Form 1040, line 38, or Form 1040A, line 22, is equal to or greater than $135,000 ($260,000 if married filing jointly), you cannot include these taxes. To determine the amount of state or local sales and excise taxes to enter on line 10, refer to the sales invoice(s) for any new motor vehicle(s) you purchased. Taxes deductible in arriving at adjusted gross income, such as taxes on a vehicle used in your business, cannot be used to increase your standard deduction. States with no sales tax. The states of Alaska, Delaware, Hawaii, Montana, New Hampshire, and Oregon do not have a sales tax. However, you may be charged other fees or taxes on the purchase of a new motor vehicle in one of these six states that is similar to a sales tax. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle’s sales price or as a per unit fee. You can include these fees or taxes on line 10. One example of a fee you can include on line 10 is the 3.75% document fee when registering a title with the Delaware Division of Motor Vehicles. The fee is 3.75% of the purchase price. New motor vehicle. A new motor vehicle is any of the following. The original use of the vehicle must begin with you. ● A passenger automobile or light truck that is self propelled, designed to transport people or property on a street or highway, and the gross vehicle weight rating of the vehicle is not more than 8,500 pounds. ● A motorcycle (defined below) with a gross vehicle weight rating of not more than 8,500 pounds. ● A motor home (defined below). Motorcycle. A vehicle with motive power having a seat or saddle for the use of the rider and designed to travel on not more than three wheels in contact with the ground. Motor home. A multi-purpose vehicle with motive power that is designed to provide temporary residential accommodations, as evidenced by the presence of at least four of the following facilities. ● Cooking. ● Refrigeration or ice box. ● Self-contained toilet. ● Heating and/or air conditioning. ● Potable water supply system including a faucet and sink. ● Separate 110-125 volt electrical power supply and/or propane. Line 11. Enter on line 11 the cost of the new motor vehicle(s). Do not include on line 11 any state or local sales or excise taxes you entered on line 10. Line 12. If you check the “Yes” box, the amount you can include for state or local sales and excise taxes is limited to the taxes imposed on the first $49,500 of the purchase price of each new motor vehicle. To figure the amount to enter on line 12, you will need to know the rate(s) of tax that apply in the state and locality where you purchased each new motor vehicle. If the state and locality where you purchased a new motor vehicle imposes a fixed rate, multiply the combined state and local rate by the smaller of $49,500 or the purchase price (before taxes) of the new motor vehicle. See Example 1 below. Some taxing jurisdictions may provide for a sales tax that is limited to a certain dollar amount per purchase. One example is Manatee County, Florida. Manatee County 1 charges an additional ⁄2% (.005) discretionary sales tax that is collected on the first $5,000 of a purchase, not to exceed $25. See Example 2 below. Example 1. You purchased a new motor vehicle on April 3, 2009, for $56,500 before taxes. The state where you purchased the vehicle imposes a fixed sales tax rate of 5% and the locality also charges a fixed rate of 1%, for a combined fixed sales tax rate of 6%. The amount of sales tax you can include on line 12 is $2,970 ($49,500 x 6% (.06)). Example 2. You purchased a new motor vehicle in Manatee County, Florida, on April 16, 2009, for $60,000 before taxes. The state of Florida has a fixed sales tax rate of 6%. The amount of sales tax you can include on line 12 is $2,995 ($49,500 x 6% (.06) + $25). In this example, $2,970 represents the 6% Florida sales tax and the $25 is for the Manatee County discretionary sales tax on the first $5,000 of the purchase price. Department of the Treasury Internal Revenue Service 2009 Instructions for Schedule M (Form 1040A or 1040) Making Work Pay and Government Retiree Credits General Instructions Who Can Take the Credits Overview. Use Schedule M to figure the following two credits. • Making work pay credit. • Government retiree credit. Both credits are included in the combined total on line 14 of Schedule M. Each credit has different rules. Carefully read the information below about each credit. Even if you cannot take the making work pay credit (for example, because your adjusted gross income is too high), you may be able to take the government retiree credit. Making work pay credit. You may be able Use Schedule M to figure the following credits. • Making work pay credit. • Government retiree credit. The credits may give you a refund even if you do not owe tax. service performed for the U.S. Government or any U.S. state or local government (or any agency of one or more of these) and the service was not covered by social security. But you cannot take the credit if you and your spouse both received a $250 economic recovery payment during 2009. You may have received an economic recovery payment if you received social security benefits, SSI benefits, railroad retirement benefits, or veterans disability compensation or pension benefits. Social security number. To take either go to line 10. You are not eligible for the making work pay credit, but you may be eligible for the government retiree credit. Wages. The amount of your wages is generally the amount reported on line 7 of Form 1040A or 1040. Earned income. If you checked the “No” box on line 1a, complete the worksheet on page M-2 and enter on line 1a the amount you figured using the worksheet. to take a credit of up to $400 ($800 if married filing jointly) if you have earned income from work. Even if your federal income tax withholding was reduced during 2009 because of the credit, you must complete Schedule M and claim the credit on your return to benefit from it. You cannot take the credit if the amount you enter on line 5 is $95,000 ($190,000 if married filing jointly) or more, you are a nonresident alien, or you can be claimed as a dependent on someone else’s return. The credit is reduced if either of the following statements is true. • You (or your spouse, if filing jointly) received a $250 economic recovery payment during 2009. You may have received an economic recovery payment if you received social security benefits, supplemental security income (SSI) benefits, railroad retirement benefits, or veterans disability compensation or pension benefits. • You take the government retiree credit discussed next. Government retiree credit. You can take a credit of $250 ($500 if married filing jointly and both spouses qualify) if you (or your spouse, if filing jointly) received a pension or annuity payment in 2009 for credit, you must include your social security number (if filing a joint return, the number of either you or your spouse) on your return. A social security number does not include an identification number issued by the IRS. Line 1b Enter on line 1b the total nontaxable combat pay you, and your spouse if filing jointly, received in 2009. This amount should be shown in Form W-2, box 12, with code Q. Effect of Credits on Welfare Benefits Any refund you receive as a result of either credit will not be used to determine if you are eligible for the following programs, or how much you can receive from them. But if the refund you receive because of either credit is not spent within a certain period of time, it may count as an asset (or resource) and affect your eligibility. Line 5 If you are filing Form 2555, 2555-EZ, or 4563, or are excluding income from Puerto Rico, enter on line 5 the following total instead of the amount on Form 1040, line 38: 1. Form 1040, line 38, plus 2. Any exclusion of income from Puerto Rico, plus 3. Any amounts from — a. Form 2555, lines 45 and 50, b. Form 2555-EZ, line 18, and c. Form 4563, line 15. • Temporary Assistance for Needy Families (TANF). • Medicaid and SSI. • Supplemental Nutrition Assistance Program (food stamps) and low-income housing. Line 10 An economic recovery payment is a $250 payment sent to you by the U.S. Treasury during 2009 if you received one of the types of benefits listed on line 10 during November 2008, December 2008, or January 2009. If both you and your spouse received those benefits, you each may have received an economic recovery payment. Specific Instructions Line 1a If you are filing Form 1040NR or can be claimed as someone else’s dependent, skip lines 1a through 8, enter -0- on line 9, and M-1 Cat. No. 53119C Earned Income Worksheet — Line 1a Before you begin: Keep for Your Records If you are claiming the additional child tax credit and have already completed Form 8812, enter on line 1a of Schedule M the amount from line 4a of your Form 8812. Do not complete the worksheet below. Disregard community property laws when figuring the amounts to enter on this worksheet. If married filing jointly, include your spouse’s amounts with yours when completing this worksheet. 1. a. Enter the amount from line 7 of Form 1040A or Form 1040 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b. Enter the amount of any nontaxable combat pay received. Also enter this amount on Schedule M, line 1b. This amount should be shown in Form(s) W-2, box 12, with code Q. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Next, if you are filing Schedule C, C-EZ, F, or SE, or you received a Schedule K-1 (Form 1065 or Form 1065-B), go to line 2a. Otherwise, skip lines 2a through 2e and go to line 3. 2. a. Enter any statutory employee income reported on line 1 of Schedule C or C-EZ . . . . . . . . . . . . . . . . . . . . . . . . . b. Enter any net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065), box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1.* Reduce this amount by any partnership section 179 expense deduction, any depletion on oil and gas properties, and any unreimbursed nonfarm partnership expenses deducted on Schedule E. Do not include any statutory employee income or any other amounts exempt from self-employment tax. Options and commodities dealers must add any gain or subtract any loss (in the normal course of dealing in or trading section 1256 contracts) from section 1256 contracts or related property . . . . c. Enter any net farm profit or (loss) from Schedule F, line 36, and from farm partnerships, Schedule K-1 (Form 1065), box 14, code A.* Reduce this amount by any partnership section 179 expense deduction, any depletion on oil and gas properties, and any unreimbursed farm partnership expenses deducted on Schedule E. Do not include any amounts exempt from self-employment tax 2c. d. If you used the farm optional method to figure net earnings from self-employment, enter the amount from Schedule SE, Section B, line 15. Otherwise, skip this line and enter on line 2e the amount from line 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d. e. If line 2c is a profit, enter the smaller of line 2c or line 2d. If line 2c is a (loss), enter the (loss) from line 2c. . . . . 3. Combine lines 1a, 1b, 2a, 2b, and 2e. If zero or less, stop. Do not complete the rest of this worksheet. Instead, enter -0on line 1a of Schedule M, skip lines 1b through 8, enter -0- on line 9, and go to line 10 of Schedule M . . . . . . . . . . . 4. Enter any amount included on line 1a that is: a. A scholarship or fellowship grant not reported on Form W-2 . . . . . . . . . . . . . . . . . . . . . . . . . . 4a. b. For work done while an inmate in a penal institution (enter “PRI” and this amount on the dotted line next to line 7 of Form 1040A or 1040) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b. c. A pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan (enter “DFC” and this amount on the dotted line next to line 7 of Form 1040A or 1040). This amount may be shown in box 11 of your Form W-2. If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity . . . . . 4c. 5. a. Enter any amount included on line 3 that is also included on Form 2555, line 43, or Form 2555-EZ, line 18. Do not include any amount that is also included on line 4a, 4b, or 4c above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5a. b. Enter the amount, if any, from Form 2555, line 44, that is also deducted on Schedule C, C-EZ, or F, or included on Schedule E in partnership net income or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5b. c. Subtract line 5b from line 5a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5c. 6. Enter the amount from Form 1040, line 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7. Add lines 4a through 4c, 5c, and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. Subtract line 7 from line 3. Enter the result here and on Schedule M, line 1a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . *If you have any Schedule K-1 amounts and you are not required to file Schedule SE, complete the appropriate line(s) of Schedule SE, Section A. Put your name and social security number on Schedule SE and attach it to your return. 1a. 1b. 2a. 2b. 2e. 3. 7. 8. M-2 Department of the Treasury Internal Revenue Service 2009 Instructions for Schedule SE (Form 1040) Use Schedule SE (Form 1040) to figure the tax due on net earnings from self-employment. information from Schedule SE to figure Self-Employment The Social Security Administration uses theThis tax applies no matter how old you areyour benefits under the social security program. and even if you are already getting social security or Medicare benefits. Tax See Pub. 225 or Pub. 334. Additional information. Section references are to the Internal Revenue Code unless otherwise noted. electing an exemption from employer social security and Medicare taxes. come exclusion or the foreign housing exclusion or deduction. See Pub. 517 for details. What’s New Maximum income subject to social security tax. For 2009, the maximum amount of Ministers and Members of Religious Orders In most cases, you must pay SE tax on salaries and other income for services you performed as a minister, a member of a religious order who has not taken a vow of poverty, or a Christian Science practitioner. But if you filed Form 4361 and received IRS approval, you will be exempt from paying SE tax on those net earnings. If you had no other income subject to SE tax, enter “Exempt — Form 4361” on Form 1040, line 56. However, if you had other earnings of $400 or more subject to SE tax, see line A at the top of Long Schedule SE. Members of Certain Religious Sects If you have conscientious objections to social security insurance because of your membership in and belief in the teachings of a religious sect recognized as being in existence at all times since December 31, 1950, and which has provided a reasonable level of living for its dependent members, you are exempt from SE tax if you received IRS approval by filing Form 4029. In this case, do not file Schedule SE. Instead, enter “Exempt — Form 4029” on Form 1040, line 56. See Pub. 517 for details. self-employment income subject to social security tax is $106,800. Optional methods to figure net earnings. For 2009, the amount of gross and net income from self-employment you may have when using the farm optional method or nonfarm optional method has increased. Electing taxpayers can secure up to four credits of social security benefits coverage with $4,360 of net earnings in 2009. See Optional Methods on page SE-4. General Instructions Who Must File Schedule SE You must file Schedule SE if: • Your net earnings from self-employment (see page SE-3) from other than church employee income were $400 or more, or • You had church employee income of $108.28 or more — see E mployees of Churches and Church Organizations below. Who Must Pay Self-Employment (SE) Tax? Self-Employed Persons You must pay SE tax if you had net earnings of $400 or more as a self-employed person. If you are in business (farm or nonfarm) for yourself, you are self-employed. You must also pay SE tax on your share of certain partnership income and your guaranteed payments. See Partnership Income or Loss on page SE-3. Employees of Churches and Church Organizations If you had church employee income of $108.28 or more, you must pay SE tax. Church employee income is wages you received as an employee (other than as a minister or member of a religious order) of a church or qualified church-controlled organization that has a certificate in effect If you have ever filed Form 2031 to elect social security coverage on your earnings as a minister, you cannot revoke that election. If you must pay SE tax, include this income on either Short or Long Schedule SE, line 2. But do not report it on Long Schedule SE, line 5a; it is not considered church employee income. Also, include on line 2: • The rental value of a home or an allowance for a home furnished to you (including payments for utilities), and • The value of meals and lodging provided to you, your spouse, and your dependents for your employer’s convenience. However, do not include on line 2: • Retirement benefits you received from a church plan after retirement, or • The rental value of a home or an allowance for a home furnished to you (including payments for utilities) after retirement. If you were a duly ordained minister who was an employee of a church and you must pay SE tax, the unreimbursed business expenses that you incurred as a church employee are allowed only as an itemized deduction for income tax purposes. However, when figuring SE tax, subtract on line 2 the allowable expenses from your self-employment earnings and attach an explanation. If you were a U.S. citizen or resident alien serving outside the United States as a minister or member of a religious order and you must pay SE tax, you cannot reduce your net earnings by the foreign earned in- U.S. Citizens Employed by Foreign Governments or International Organizations You must pay SE tax on income you earned as a U.S. citizen employed by a foreign government (or, in certain cases, by a wholly owned instrumentality of a foreign government or an international organization under the International Organizations Immunities Act) for services performed in the United States, Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, or the U.S. Virgin Islands. Report income from this employment on either Short or Long Schedule SE, line 2. If you performed services elsewhere as an employee of a foreign government or an international organization, those earnings are exempt from SE tax. Exception — Dual citizens. A person with dual U.S.-foreign citizenship is generally considered to be a U.S. citizen for social security purposes. However, if you are a U.S. citizen and also a citizen of a country with which the United States has a bilateral social security agreement, other than Canada or Italy, your work for the government of that foreign country is always exempt from U.S. social security taxes. For further information about these agreements, see the exception shown in the next section. U.S. Citizens or Resident Aliens Living Outside the United States If you are a self-employed U.S. citizen or resident alien living outside the United States, in most cases you must pay SE tax. You cannot reduce your foreign earnings SE-1 Cat. No. 24334P from self-employment by your foreign earned income exclusion. Exception. The United States has social security agreements with many countries to eliminate dual taxes under two social security systems. Under these agreements, you must generally pay social security and Medicare taxes to only the country you live in. For other reporting requirements, see page 21 in the instructions for Form 1040. More Than One Business If you had two or more businesses, your net earnings from self-employment are the combined net earnings from all of your businesses. If you had a loss in one business, it reduces the income from another. Figure the combined SE tax on one Schedule SE. The United States now has social security agreements with the following countries: Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Luxembourg, the Netherlands, Norway, Poland, Portugal, South Korea, Spain, Sweden, Switzerland, and the United Kingdom. Additional agreements are expected in the future. If you have questions about international social security agreements, you can: 1. Visit the Social Security Administration (SSA) website at www.socialsecurity. gov/international; 2. Call the SSA’s Office of International Programs at: a. (410) 965-0144 for questions on benefits under agreements, or b. (410) 965-3549 for questions on the coverage rules of the agreements; or 3. Write to: a. Social Security Administration, Office of International Programs, P.O. Box 17741, Baltimore, MD 21235-7741 USA for information about an agreement, or b. Social Security Administration, OIO — Totalization, P.O. Box 17769, Baltimore, MD 21235-7769 USA for information about a claim for benefits. If your self-employment income is exempt from SE tax, you should get a statement from the appropriate agency of the foreign country verifying that your self-employment income is subject to social security coverage in that country. If the foreign country will not issue the statement, contact the SSA at the address shown in (3a) above. Do not complete Schedule SE. Instead, attach a copy of the statement to Form 1040 and enter “Exempt, see attached statement” on Form 1040, line 56. Joint Returns Show the name of the spouse with self-employment income on Schedule SE. If both spouses have self-employment income, each must file a separate Schedule SE. However, if one spouse qualifies to use Short Schedule SE (front of form) and the other must use Long Schedule SE (back of form), both can use the same form. One spouse should complete the front and the other the back. Include the total profits or losses from all businesses on Form 1040, as appropriate. Enter the combined SE tax on Form 1040, line 56. $400 or more of other earnings subject to SE tax, include on Schedule SE, line 1a or 2, the net profit or (loss) from Schedule(s) C, C-EZ, or F allocated to you as community income. Also, enter on the dotted line to the left of Schedule SE, line 3, “Exempt community income” and the allocated amount. If that amount is a net profit, subtract it from the total of lines 1a, 1b, and 2, and enter the result on line 3. If that amount is a loss, treat it as a positive amount, add it to the total of lines 1a, 1b, and 2, and enter the result on line 3. Community income included on Schedule(s) C, C-EZ, or F must be divided for income tax purposes based on the community property laws of your state. See Pub. 555 for more information. Qualified Joint Ventures If you and your spouse materially participate (see Material participation in the 2009 Instructions for Schedule C) as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be taxed as a qualified joint venture instead of a partnership. To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Each of you must file a separate Schedule C, C-EZ, or F. On each line of your separate Schedule C, C-EZ, or F, you must enter your share of the applicable income, deduction, or loss. Each of you also must file a separate Schedule SE to pay SE tax, as applicable. For more information on qualified joint ventures, go to www.irs.gov. Enter “QJV election” in the search box and select “Election for Husband and Wife Unincorporated Businesses.” Rental real estate business. If you and your spouse make the election for your rental real estate business, the income generally is not subject to SE tax (for an exception, see item 3 under Other Income and Losses Included in Net Earnings From Self-Employment on page SE-3). If the election is made for a farm rental business that is not included in self-employment, file two Forms 4835, Farm Rental Income and Expenses. Community Income If any of the income from a business (including farming) is community income, then the income and deductions are reported based on the following. • If only one spouse participates in the business, all of the income from that business is the self-employment earnings of the spouse who carried on the business. • If both spouses participate, the income and deductions are allocated to the spouses based on their distributive shares. • If either or both you and your spouse are partners in a partnership, see Partnership Income or Loss on page SE-3. • If you and your spouse elected to treat the business as a qualifying joint venture, see Qualified Joint Ventures on this page. Married filing separately. If you and your Chapter 11 Bankruptcy Cases While you are a debtor in a chapter 11 bankruptcy case, your net profit or loss from self-employment (for example, from Schedule C or Schedule F) will not be included in your Form 1040 income. Instead, it will be included on the income tax return (Form 1041) of the bankruptcy estate. However, you (not the bankruptcy estate) are responsible for paying self-employment tax on your net earnings from self-employment. Enter on the dotted line to the left of Schedule SE, line 3, “Chap. 11 bankruptcy income” and the amount of your net profit or (loss). Combine that amount with the total of lines 1a, 1b, and 2 (if any) and enter the result on line 3. spouse had community income and file separate returns, attach Schedule SE to the return of the spouse with the self-employment income. Also, attach Schedule(s) C, C-EZ, or F (showing the spouse’s share of community income and expenses) to the return of each spouse. If you are the spouse who carried on the business, you must include on Schedule SE, line 3, the net profit or (loss) reported on the other spouse’s Schedule C, C-EZ, or F (except income not included in net earnings from self-employment as explained beginning on page SE-3). Enter on the dotted line to the left of Schedule SE, line 3, “Community income taxed to spouse” and the amount of any net profit or (loss) allocated to your spouse as community income. Combine that amount with the total of lines 1a, 1b, and 2 and enter the result on line 3. If you are not the spouse who carried on the business and you had no other income subject to SE tax, enter “Exempt community income” on Form 1040, line 56; do not file Schedule SE. However, if you had Fiscal Year Filers If your tax year is a fiscal year, use the tax rate and earnings base that apply at the time the fiscal year begins. Do not prorate the tax or earnings base for a fiscal year that overlaps the date of a rate or earnings base change. Specific Instructions Read the flowchart on page 1 of Schedule SE to see if you can use Section A — Short Schedule SE, or if you must use Section B — Long Schedule SE. For either section, you need to know what to include as net SE-2 earnings from self-employment. Read the following instructions to see what to include as net earnings and how to fill in either Short or Long Schedule SE, lines 1a, 1b, and 2. Enter all negative amounts in parentheses. Share Farming You are considered self-employed if you produced crops or livestock on someone else’s land for a share of the crops or livestock produced (or a share of the proceeds from the sale of them). This applies even if you paid another person (an agent) to do the actual work or management for you. Report your net earnings for income tax purposes on Schedule F (Form 1040) and for SE tax purposes on Schedule SE. See Pub. 225 for details. Line 1b (Short or Long Schedule SE) If you were receiving social security retirement or social security disability benefits at the time you received your Conservation Reserve Program (CRP) payment(s), enter the amount of your taxable CRP payment(s) on line 1b. These payments are included on Schedule F, line 6b, or listed on Schedule K-1 (Form 1065), box 20, code Y. Other Income and Losses Included in Net Earnings From Self-Employment 1. Rental income from a farm if, as landlord, you materially participated in the production or management of the production of farm products on this land. This income is farm earnings. To determine whether you materially participated in farm management or production, do not consider the activities of any agent who acted for you. The material participation tests for landlords are explained in chapter 12 of Pub. 225. 2. Cash or a payment-in-kind from the Department of Agriculture for participating in a land diversion program. 3. Payments for the use of rooms or other space when you also provided substantial services for the convenience of your tenants. Examples are hotel rooms, boarding houses, tourist camps or homes, trailer parks, parking lots, warehouses, and storage garages. See chapter 5 of Pub. 334 for more information. 4. Income from the retail sale of newspapers and magazines if you were age 18 or older and kept the profits. 5. Income you receive as a direct seller. Newspaper carriers or distributors of any age are direct sellers if certain conditions apply. See chapter 5 of Pub. 334 for details. 6. Amounts received by current or former self-employed insurance agents and salespersons that are: a. Paid after retirement but figured as a percentage of commissions received from the paying company before retirement, b. Renewal commissions, or c. Deferred commissions paid after retirement for sales made before retirement. However, certain termination payments received by former insurance salespersons are not included in net earnings from self-employment (as explained in item 10 under Income and Losses Not Included in Net Earnings From Self-Employment beginning on this page). 7. Income of certain crew members of fishing vessels with crews of normally fewer than 10 people. See chapter 10 of Pub. 334 for details. 8. Fees as a state or local government employee if you were paid only on a fee basis and the job was not covered under a federal-state social security coverage agreement. Net Earnings From Self-Employment In most cases, net earnings include your net profit from a farm or nonfarm business. If you were a partner in a partnership, see the following instructions. 9. Interest received in the course of any trade or business, such as interest on notes or accounts receivable. 10. Fees and other payments received by you for services as a director of a corporation. 11. Recapture amounts under sections 179 and 280F that you included in gross income because the business use of the property dropped to 50% or less. Do not include amounts you recaptured on the disposition of property. See Form 4797. 12. Fees you received as a professional fiduciary. This may also apply to fees paid to you as a nonprofessional fiduciary if the fees relate to active participation in the operation of the estate’s business, or the management of an estate that required extensive management activities over a long period of time. 13. Gain or loss from section 1256 contracts or related property by an options or commodities dealer in the normal course of dealing in or trading section 1256 contracts. Partnership Income or Loss If you were a general or limited partner in a partnership, include on line 1a or line 2, whichever applies, the amount of net earnings from self-employment from Schedule K-1 (Form 1065), box 14, code A, and Schedule K-1 (Form 1065-B), box 9, code J1. General partners should reduce this amount before entering it on Schedule SE by any section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties. However, if you reduce the amount you enter on Schedule SE, attach an explanation. See Partner’s Instructions for Schedule K-1 (Form 1065) for details. Limited partners include only guaranteed payments for services actually rendered to or on behalf of the partnership. If a partner died and the partnership continued, include in self-employment income the deceased’s distributive share of the partnership’s ordinary income or loss through the end of the month in which he or she died. See section 1402(f). If you were married and both you and your spouse were partners in a partnership, each of you must report your net earnings from self-employment from the partnership. Each of you must file a Schedule SE and report the partnership income or loss on Schedule E (Form 1040), Part II, for income tax purposes. If only one of you was a partner in a partnership, the spouse who was the partner must report his or her net earnings from self-employment from the partnership. Community income. Your own distributive share of partnership income is included in figuring your net earnings from self-employment. Unlike the division of that income between spouses for figuring income tax, no part of your share can be included in figuring your spouse’s net earnings from self-employment. Income and Losses Not Included in Net Earnings From Self-Employment 1. Salaries, fees, etc., subject to social security or Medicare tax that you received for performing services as an employee, including services performed as a public official (except as a fee basis government employee as explained in item 8 under Other Income and Losses Included in Net Earnings From Self-Employment on this page) or as an employee or employee representative under the railroad retirement system. 2. Fees received for services performed as a notary public. If you had no other income subject to SE tax, enter “Exempt — Notary” on Form 1040, line 56; do not file Schedule SE. However, if you had other earnings of $400 or more subject to SE tax, enter “Exempt — Notary” and the amount of your net profit as a notary public from Schedule C or Schedule C-EZ on the dotted line to the left of Schedule SE, line 3. Subtract that amount from the total of lines 1a, 1b, and 2 and enter the result on line 3. 3. Income you received as a retired partner under a written partnership plan that provides for lifelong periodic retirement payments if you had no other interest in the partnership and did not perform services for it during the year. 4. Income from real estate rentals if you did not receive the income in the course of a trade or business as a real estate dealer. Report this income on Schedule E, or on Schedule C or C-EZ if you and your spouse made an election to be taxed as a qualified joint venture. 5. Income from farm rentals (including rentals paid in crop shares) if, as landlord, you did not materially participate in the production or management of the production of farm products on the land. See chapter 12 of Pub. 225 for details. SE-3 Report this income on Form 4835. Use two Forms 4835 if you and your spouse made an election to be taxed as a qualified joint venture. 6. Payments you receive from the Conservation Reserve Program if you are receiving social security benefits for retirement or disability. Deduct these payments on line 1b of Schedule SE. 7. Dividends on shares of stock and interest on bonds, notes, etc., if you did not receive the income in the course of your trade or business as a dealer in stocks or securities. 8. Gain or loss from: a. The sale or exchange of a capital asset; b. The sale, exchange, involuntary conversion, or other disposition of property unless the property is stock in trade or other property that would be includible in inventory, or held primarily for sale to customers in the ordinary course of the business; or c. Certain transactions in timber, coal, or domestic iron ore. 9. Net operating losses from other years. 10. Termination payments you received as a former insurance salesperson if all of the following conditions are met. a. The payment was received from an insurance company because of services you performed as an insurance salesperson for the company. b. The payment was received after termination of your agreement to perform services for the company. c. You did not perform any services for the company after termination and before the end of the year in which you received the payment. d. You entered into a covenant not to compete against the company for at least a 1-year period beginning on the date of termination. e. The amount of the payment depended primarily on policies sold by or credited to your account during the last year of the agreement, or the extent to which those policies remain in force for some period after termination, or both. f. The amount of the payment did not depend to any extent on length of service or overall earnings from services performed for the company (regardless of whether eligibility for the payment depended on length of service). Optional Methods How Can the Optional Methods Help You? Social security coverage. The optional methods may give you credit toward your social security coverage even though you have a loss or a small amount of income from self-employment. Earned income credit (EIC). Using the optional methods may qualify you to claim the EIC or give you a larger credit if your net earnings from self-employment (determined without using the optional methods) are less than $4,360. Figure the EIC with and without using the optional methods to see if the optional methods will benefit you. Additional child tax credit. Using the optional methods may qualify you to claim the additional child tax credit or give you a larger credit if your net earnings from self-employment (determined without using the optional methods) are less than $4,360. Figure the additional child tax credit with and without using the optional methods to see if the optional methods will benefit you. Child and dependent care credit. The optional methods may help you qualify for this credit or give you a larger credit if your net earnings from self-employment (determined without using the optional methods) are less than $4,360. Figure this credit with and without using the optional methods to see if the optional methods will benefit you. Self-employed health insurance deduction. earnings from farm self-employment even if the farming business had a loss. For a farm partnership, figure your share of gross income based on the partnership agreement. With guaranteed payments, your share of the partnership’s gross income is your guaranteed payments plus your share of the gross income after it is reduced by all guaranteed payments made by the partnership. If you were a limited partner, include only guaranteed payments for services you actually rendered to or on behalf of the partnership. Nonfarm Optional Method You may be able to use this method to figure your net earnings from nonfarm self-employment if your net nonfarm profits were less than $4,721 and also less than 72.189% of your gross nonfarm income. Net nonfarm profits are the total of the amounts from: • Schedule C (Form 1040), line 31, • Schedule C-EZ (Form 1040), line 3, • Schedule K-1 (Form 1065), box 14, code A (from other than farm partnerships), and • Schedule K-1 (Form 1065-B), box 9, code J1. To use this method, you also must be regularly self-employed. You meet this requirement if your actual net earnings from self-employment were $400 or more in 2 of the 3 years preceding the year you use the nonfarm optional method. The net earnings of $400 or more could be from either farm or nonfarm earnings or both. The net earnings include your distributive share of partnership income or loss subject to SE tax. Use of the nonfarm optional method from nonfarm self-employment is limited to 5 years. The 5 years do not have to be consecutive. Under this method, report in Part II, line 17, two-thirds of your gross nonfarm income, up to the amount on line 16, as your net earnings. But you cannot report less than your actual net earnings from nonfarm self-employment. Figure your share of gross income from a nonfarm partnership in the same manner as a farm partnership. See Farm Optional Method on this page for details. The optional methods of computing net earnings from self-employment may be used to figure your self-employed health insurance deduction. Using the optional methods may give you the benefits described above, but they may also increase your SE tax. Changing Your Method You can change the method after you file your return. That is, you can change from the regular to the optional method or from the optional to the regular method. To do this, file Form 1040X. Farm Optional Method You may use this method to figure your net earnings from farm self-employment if your gross farm income was $6,540 or less or your net farm profits were less than $4,721. Net farm profits are: • The total of the amounts from Schedule F (Form 1040), line 36, and Schedule K-1 (Form 1065), box 14, code A, minus • The amount you would have entered on Schedule SE, line 1b, had you not used the optional method. There is no limit on how many years you can use this method. Under this method, report in Part II, line 15, two-thirds of your gross farm income, up to $4,360, as your net earnings. This method can increase or decrease your net Using Both Optional Methods If you can use both methods, you can report less than your total actual net earnings from farm and nonfarm self-employment, but you cannot report less than your actual net earnings from nonfarm self-employment alone. If you use both methods to figure net earnings, you cannot report more than $4,360 of net earnings from self-employment. Statutory Employee Income If you were required to check the box on Schedule C or C-EZ, line 1, because you were a statutory employee, do not include the net profit or (loss) from that Schedule C, line 31 (or the net profit from Schedule C-EZ, line 3), on Short or Long Schedule SE, line 2. But if you file Long Schedule SE, be sure to include statutory employee social security wages and tips from Form W-2 on line 8a. SE-4 Index to Instructions A Address change . . . . . . . . . . . . Addresses of IRS centers . . . . . . Adjusted gross income . . . . . . . Adoption expenses: Credit for . . . . . . . . . . . . . . Employer-provided benefits for Aliens . . . . . . . . . . . . . . . . . Alimony paid . . . . . . . . . . . . . Alimony received . . . . . . . . . . Alternative minimum tax . . . . . . Amended return . . . . . . . . . . . Amount you owe . . . . . . . . . . Annuities . . . . . . . . . . . . . . . Archer MSAs . . . . . . . . . . . . . At-risk rules . . . . . . . . . . . . . . Attachments to the return . . . . . . . . . . . . . . 14 . . . Back Cover . . . . . . . 29-35 . . . . . . . . . 45 . . . . . . . . . 21 .......... 8 . . . . . . . . . 31 . . . . . . . . . 24 . . . . . . . . 7, 40 . . . . . . . . . 91 . . . . . . . 74-75 . . . . . . . 25-27 . . . . 29, 45, 46 C-7*, E-1*, F-7* . . . . . . . . . 76 Forms W-2, 1098, and 1099 — where to report certain items from . . . . . . . . . . . . . . . . . 10 Forms, how to get . . . . . . . . . . . . . . . . . . . 96 Free tax help . . . . . . . . . . . . . . . . . . . . 92, 96 Public debt, gift to reduce the . . . . . . . . . . . . 91 Publications, how to get . . . . . . . . . . . . . . . 96 Q Qualified dividends . . . . . . . . . . . . 22, 38, D-3* Qualified dividends and capital gain tax worksheet . . . . . . . . . . . . . . . . . . . . . . . 38 Qualified retirement plans, deduction for . . . . . 30 Qualified tuition program earnings . . . . . . . 29, 45 G Gambling . . . . . . . . . . . . . . . . . . . 29, A-11* Gifts to charity . . . . . . . . . . . . . . . . . . . . A-8* Golden parachute payments . . . . . . . . . . . . . 46 Government retiree credit . . . . . . . . . . . . . . 47 Group-term life insurance, uncollected tax on . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 R Railroad retirement benefits: Treated as a pension . . . . . . . . . . . . . . . . 25 Treated as social security . . . . . . . . . . . . . 27 Records, how long to keep . . . . . . . . . . . . . . 91 Refund . . . . . . . . . . . . . . . . . . . . . . . . 72-74 Refund information . . . . . . . . . . . . . . . . . . 93 Refund offset . . . . . . . . . . . . . . . . . . . . . . 72 Refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Rental income and expenses (Schedule E) . . . E-3* Reservists, expenses of . . . . . . . . . . . . . . . . 30 Resident aliens . . . . . . . . . . . . . . . . . . . . . . 8 Residential energy efficient property credit . . . 45 Retirement plan deduction, self-employed . . . . 30 Retirement savings contributions credit . . . . . . 40 Rights of taxpayers . . . . . . . . . . . . . . . . . . 90 Rollovers . . . . . . . . . . . . . . . . . . . . . . 24, 27 Roth IRAs . . . . . . . . . . . . . . . . . . . 24, 27, 31 Rounding off to whole dollars . . . . . . . . . . . 21 Royalties . . . . . . . . . . . . . . . . . . . . . . . . E-4* H Head of household . . . . . . . . . . . . . . . . . . . 15 Health insurance deduction, self-employed . . . . 30 Health savings accounts . . . . . . . . 29, 30, 45, 46 Help with unresolved tax issues . . . . . . . . . . . 4 Home, sale of . . . . . . . . . . . . . . . . . . . . . D-2* Homebuyer credit, first-time . . . . . . . . . . . . 7, 72 Household employment taxes . . . . . . . . . . . . 46 How to comment on forms . . . . . . . . . . . . . 97 B Bankruptcy cases, chapter 11 . Blindness, proof of . . . . . . . Business income and expenses (Schedule C) . . . . . . . . . . Business use of home . . . . . . . . . . . . . . . . . 21 . . . . . . . . . . . 35 . . . . . . . . . . C-1* . A-10*, C-7*, F-6* I Identity theft . . . . . . . . . . . . . . . . . . . . . . 90 Income . . . . . . . . . . . . . . . . . . . . . . . . 21-29 Income tax withholding (federal) . . . . . . . . 47, 90 Individual retirement arrangements (IRAs): Contributions to (line 32) . . . . . . . . . . . 31-33 Credit for contributions to . . . . . . . . . . . . 40 Distributions from (lines 15a and 15b) . . . . . 24 Nondeductible contributions to . . . . . 24, 31-33 Individual taxpayer identification numbers . . . . 14 Injured spouse . . . . . . . . . . . . . . . . . . . . . 72 Innocent spouse relief . . . . . . . . . . . . . . . . . 90 Installment payments . . . . . . . . . . . . . . . 74, 95 Interest: Late payment of tax . . . . . . . . . . . . . . . . 92 Penalty on early withdrawal of savings . . . . 31 Interest income: Taxable . . . . . . . . . . . . . . . . . . . . . . . . 22 Tax-exempt . . . . . . . . . . . . . . . . . . . . . 22 Interest you paid . . . . . . . . . . . . . . . . . . . A-6* Itemized deductions or standard deduction . . . . . . . . . . . . . . . . . . . . . 35-36 C Capital gain distributions . . . . . . . . . . . 24, D-2* Capital gains and losses (Schedule D) . . . . . . D-1* Cash for clunkers . . . . . . . . . . . . . . . . . . . . 6 Casualty and theft losses . . . . . . . . . . . . . A-10* Charity, gifts to . . . . . . . . . . . . . . . . . . . A-8* Child and dependent care expenses, credit for . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Child tax credits . . . . . . . . . . . . . 17, 42-43, 72 Community property states . . . . . . . . . . . . . 21 Contributions to reduce debt held by the public . . . . . . . . . . . . . . . . . . . . . . . . . 91 Corrective distributions . . . . . . . . . . . . . . . . 22 Customer service standards . . . . . . . . . . . . . . 4 S S corporations . . . . . . . . . . . . . . . . E-6*, E-7* Sale of home . . . . . . . . . . . . . . . . . . . . . D-2* Scholarship and fellowship grants . . . . . . . . . 21 Self-employment tax: Deduction for one-half of . . . . . . . . . . . . . 30 Income subject to . . . . . . . . . . . . . . . . SE-3* Signing your return . . . . . . . . . . . . . . . . 75-76 Single person . . . . . . . . . . . . . . . . . . . . . . 14 Social security and equivalent railroad retirement benefits . . . . . . . . . . . . . . . . . . . . . . 27-28 Social security number . . . . . . . . . . . . . . 14, 90 Standard deduction or itemized deduction . . 35-36 State and local income taxes, taxable refunds, credits, or offsets of . . . . . . . . . . . . . . . . 23 Statutory employees . . . . . . . . . . 22, C-4*, C-7* Student loan interest deduction . . . . . . . . . . . 34 D Daycare center expenses . . . . . . . . . . . . . . . 40 Death of a taxpayer . . . . . . . . . . . . . . . . . . 91 Dependent care benefits . . . . . . . . . . . . . . . 21 Dependents: Exemptions for . . . . . . . . . . . . . . . . . . . 17 Standard deduction . . . . . . . . . . . . . . . . . 36 Direct deposit of refund . . . . . . . . . . . . . 73-74 Disclosure, Privacy Act, and Paperwork Reduction Act notice . . . . . . . . . . . . . . . . . . . . . . 97 Dividends: Nondividend distributions . . . . . . . . . . . . . 22 Ordinary dividends . . . . . . . . . . . . . . . . . 22 Qualified dividends . . . . . . . . . . . 22, 38, D-3* Domestic production activities deduction . . . . . 35 Donations . . . . . . . . . . . . . . . . . . . . . . . A-8* Dual-status aliens . . . . . . . . . . . . . . . . . . 8, 15 J Jury duty pay . . . . . . . . . . . . . . . . . . . . . . 29 L Line instructions for Form 1040 . . . . . . . . 14-76 Long-term care insurance . . . . . . . . . . 30, A-1* Lump-sum distributions . . . . . . . . . . . . . . . 27 T Table of contents . . . . . . . . . . . . . . . Tax and credits . . . . . . . . . . . . . . . . . Figured by the IRS . . . . . . . . . . . . . Other taxes: Alternative minimum tax . . . . . . . . IRAs and other tax-favored accounts Lump-sum distributions . . . . . . . . Recapture . . . . . . . . . . . . . . . . . Tax computation worksheet . . . . . . . . . Tax rate schedules . . . . . . . . . . . . . . . Tax table . . . . . . . . . . . . . . . . . . . . . Taxes you paid . . . . . . . . . . . . . . . . . Taxpayer Advocate, office of . . . . . . . . Telephone assistance: Federal tax information . . . . . . . . . . TeleTax . . . . . . . . . . . . . . . . . . . . Third party designee . . . . . . . . . . . . . Tip income . . . . . . . . . . . . . . . . . . . Tips reported to employer, uncollected tax on . . . . . . . . . . . . . . . . . . . . . . . Tuition and fees deduction . . . . . . . . . . Tuition program earnings . . . . . . . . . . ..... 3 . . 35-46 . . 37, 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 45 27 46 89 101 77-88 . A-2* ... 4 93-95 93-94 . . 75 21, 45 . . . . . M Making work pay credit . . . . . . . . . . . . . . . 47 Married persons: Filing joint returns . . . . . . . . . . . . . . . . . 15 Filing separate returns . . . . . . . . . . . . . . . 15 Living apart . . . . . . . . . . . . . . . . . . . . . 15 Medical and dental expenses . . . . . . . . . . . A-1* Mileage rates, standard . . . . 6, A-1*, A-10*, C-4* Miscellaneous itemized deductions . . . . . . . A-10* Mortgage interest credit . . . . . . . . . . . 45, A-7* Moving expenses . . . . . . . . . . . . . . . . . . 6, 30 E Earned income credit (EIC) . . . . . . . . . . 7, 48-71 Combat pay, nontaxable . . . . . . . . . . . . . . 50 Economic recovery payments . . . . . . . . . . . . 29 Education: Credits . . . . . . . . . . . . . . . . . 40, 72, A-10* Expenses . . . . . . . . . . . . . . 34, 40, 72, A-10* Recapture of education credits . . . . . . . . . . 37 Savings accounts . . . . . . . . . . . . . . . . 29, 45 Educator expenses . . . . . . . . . . . . . . . . . . 7, 29 Elderly persons: Credit for . . . . . . . . . . . . . . . . . . . . . . . 45 Standard deduction . . . . . . . . . . . . . . . . . 36 Electric vehicles . . . . . . . . . . . . . . . . . . . . 45 Electronic filing (e-file) . . . . 6, 7, 10, 14, 73, 74, 75-76, 96 Employee business expenses . . . . . . . . . . A-10* Estates and trusts . . . . . . . . . . . . . . . . . . E-7* Estimated tax . . . . . . . . . . . . . . . 47, 74, 75, 90 Excess salary deferrals . . . . . . . . . . . . . . . . 21 Excess social security and tier 1 RRTA tax withheld . . . . . . . . . . . . . . . . . . . . . . . 72 Exemptions . . . . . . . . . . . . . . . . . . . . . . . 16 Extension of time to file . . . . . . . . . . . . . . 8, 72 N Name change . . . . . . . . . . . . . . . . . . . . 14, 90 Nonbusiness energy property credit . . . . . . . . 45 Nonresident aliens . . . . . . . . . . . . . . . 8, 14, 15 O Offsets . . . . . . . . . . . . . . . . . . . . Order form for forms and publications Other income . . . . . . . . . . . . . . . . Other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 . . 99 . . 29 45-46 . . . . 46 . . . 7, 35 . . 29, 45 U U.S. citizens and resident aliens living abroad . . . . . . . . . . . . . . . . . . . . . . . . 7, 21 Unemployment compensation . . . . . . . . . . . . 27 P Partnership expenses, unreimbursed . . . . . . . E-7* Partnerships . . . . . . . . . . . . . . . . . . E-6*, E-7* Passive activity: Losses . . . . . . . . . . . . . . . . C-3*, E-2*, F-2* Material participation . . . . . . . . . . C-3*, F-2* Payments . . . . . . . . . . . . . . . . . . . . . . 46-72 Penalty . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Early withdrawal of savings . . . . . . . . . . . 31 Estimated tax . . . . . . . . . . . . . . . . . . 74-75 Others (including late filing and late payment) . . . . . . . . . . . . . . . . . . . . . . 92 Pensions and annuities . . . . . . . . . . . . . . 25-27 Presidential election $3 check-off . . . . . . . . . 14 Private delivery services . . . . . . . . . . . . . . . . 8 W What if you cannot pay? . . . . . . . . . . . . . 74, 95 What’s new . . . . . . . . . . . . . . . . . . . . . . . . 6 When and where should you file? . . . . . . . . . . 8 Where do you file? . . . . . . . . . . . . Back Cover Who must file . . . . . . . . . . . . . . . . . . . . 7, 9 Who should file . . . . . . . . . . . . . . . . . . . . . 7 Widows and widowers, qualifying . . . . . . . . . 16 Winnings, prizes, gambling, and lotteries (other income) . . . . . . . . . . . . . . . . . . . . . . . . 29 Withholding, federal income tax . . . . . . . . 46, 90 F Farm income and expenses (Schedule Farm income averaging (Schedule J) Filing requirements . . . . . . . . . . . Filing status, which box to check . . . Foreign accounts and trusts . . . . . . Foreign tax credit . . . . . . . . . . . . Foreign-source income . . . . . . . . . Form W-2 . . . . . . . . . . . . . . . . . F) .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . F-1* . J-1* . . 7-9 14-16 . . 21 . . 40 . . 21 . . 22 * These items may not be included in this package. To reduce printing costs, we have sent you only the forms you may need based on what you filed last year. 1 I.R.S. SPECIFICATIONS TO BE REMOVED BEFORE PRINTING INSTRUCTIONS TO PRINTERS PACKAGE 1040-OTC, FOLIO 132 OF 132 MARGINS; TOP 13mm (1⁄2 "), CENTER SIDES. PRINTS: HEAD TO HEAD PAPER: WHITE WRITING, SUB. 20. INK: BLACK FLAT SIZE: 216mm (81⁄2 ") x 279mm (11") PERFORATE: ON FOLD DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT Where Do You File? If an envelope came with this booklet, please use it. If you do not have one or if you moved during the year, mail your return to the address shown below that applies to you. If you want to use a private delivery service, see page 8. Envelopes without enough postage will be returned to you by the post office. Your envelope may need additional postage if it contains more than five pages or is oversized (for example, it is over 1⁄4 " thick). Also, include your complete return address. TIP THEN use this address if you: IF you live in... Florida, Georgia, North Carolina, South Carolina Arkansas, Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia Alabama, Kentucky, Louisiana, Mississippi, Tennessee, Texas Alaska, Arizona, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, Wyoming A foreign country, American Samoa, or Puerto Rico (or are excluding income under Internal Revenue Code section 933), or use an APO or FPO address, or file Form 2555, 2555-EZ, or 4563, or are a dual-status alien or nonpermanent resident of Guam or the Virgin Islands* Are not enclosing a check or money order... Department of the Treasury Internal Revenue Service Center Atlanta, GA 39901-0002 Department of the Treasury Internal Revenue Service Center Kansas City, MO 64999-0002 Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0002 Department of the Treasury Internal Revenue Service Center Fresno, CA 93888-0002 Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA Are enclosing a check or money order... Department of the Treasury Internal Revenue Service Center Atlanta, GA 39901-0102 Department of the Treasury Internal Revenue Service Center Kansas City, MO 64999-0102 Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0102 Department of the Treasury Internal Revenue Service Center Fresno, CA 93888-0102 Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA * Permanent residents of Guam should use: Department of Revenue and Taxation, Government of Guam, P.O. Box 23607, GMF, GU 96921; permanent residents of the Virgin Islands should use: V.I. Bureau of Internal Revenue, 9601 Estate Thomas, Charlotte Amalie, St. Thomas, VI 00802. What’s Inside? (see Index for page numbers) Instructions for Form 1040 Table of contents IRS e-file and free file options Index (inside back cover) When to file What’s new How to comment on forms How to avoid common mistakes Help with unresolved tax issues Free tax help How to get forms and publications Tax table How to make a gift to reduce debt held by the public ...
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i1040 - Certain Cash Contributions for Haiti Relief Can Be...

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