| Instructions for Form 1040 |
2009 Tax Year |
1040 - Introductory Material
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
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.
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 $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 payment of COBRA health care coverage continuation premiums is not taxable for federal income
tax purposes.
Home mortgage principal reductions.
Any 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 maximum 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.
Alternative minimum tax (AMT) exemption amount increased.
The AMT 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 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 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.
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.
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.
Standard mileage rates.
The 2009 rate for 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.
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),
-
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 noncustodial 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 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).
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 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 Midwestern 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 credit expired.
This 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.
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
-
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.
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 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.
Alternative minimum tax (AMT) exemption amount.
The AMT exemption 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).
Expiring tax benefits.
The following benefits 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 and itemized deduction phaseouts ended.
For 2010, taxpayers with AGI above a certain amount will no longer lose part of their deduction for personal exemptions
and itemized deductions.
Allowance of certain personal credits against the AMT.
The allowance of the 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.
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.
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.
 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.
-
Refundable American opportunity credit.
-
First-time homebuyer credit.
-
Refundable credit for prior year minimum tax.
-
Health coverage tax credit.
Exception for certain children under age 19 or full-time students.
If certain conditions apply, you can elect to include on your return the income of a child who was 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 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.
These rules also apply if you were a nonresident alien or a dual-status alien and both of the following apply.
See Pub. 519 for details.
 Specific rules apply to determine if you are a resident alien, nonresident alien, or dual-status 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.
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.
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.
An automatic 6-month extension to file does not extend the time to pay your tax. See Form 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 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.
Private delivery services cannot deliver items to P.O. boxes. You must use the U.S. Postal 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 |
under 65
65 or older
|
$9,350
10,750
|
|
|
| |
Married filing jointly*** |
under 65 (both spouses)
65 or older (one spouse)
65 or older (both spouses)
|
$18,700
19,800
20,900
|
|
|
| |
Married filing separately (see page 15) |
any age |
$3,650 |
|
|
| |
Head of household (see page 15) |
under 65
65 or older
|
$12,000
13,400
|
|
|
| |
Qualifying widow(er) with dependent child (see page 16) |
under 65
65 or older
|
$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 incomemeans 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. |
|
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—
|
| |
|
|
|
| |
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—
|
| |
|
|
|
| |
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. |
|
You received any advance earned income credit (EIC) payments from your employer. These payments are shown in
Form W-2, box 9.
|
| 3. |
|
You had net earnings from self-employment of at least $400. |
| 4. |
|
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.
|
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) |
|
Form 1040, line 7 |
| |
|
Allocated tips (box 8) |
|
See Wages, Salaries, Tips, etc. on page 21
|
| |
|
Advance EIC payment (box 9) |
|
Form 1040, line 59 |
| |
|
Dependent care benefits (box 10) |
|
Form 2441, Part III |
| |
|
Adoption benefits (box 12, code T) |
|
Form 8839, line 22 |
| |
|
Employer contributions to an Archer
MSA (box 12, code R)
|
|
Form 8853, line 1 |
| |
|
Employer contributions to a health savings account (box 12, code W) |
|
Form 8889, line 9 |
| |
W-2G |
Gambling winnings (box 1) |
|
Form 1040, line 21 (Schedule C or C-EZ for professional gamblers) |
| |
1098 |
Mortgage interest (box 1)
Points (box 2)
|
|
|
Schedule A, line 10* |
| |
|
Refund of overpaid interest (box 3) |
|
Form 1040, line 21, but first see the instructions on Form 1098* |
| |
|
Mortgage insurance premiums (box 4) |
|
See the instructions for Schedule A, line 13* |
| |
1098-C |
Contributions of motor vehicles, boats, and airplanes |
|
Schedule A, line 17 |
| |
1098-E |
Student loan interest (box 1) |
|
See the instructions for Form 1040, line 33, on page 34* |
| |
1098-T |
Qualified tuition and related expenses
(box 1)
|
|
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*
|
| |
1099-A |
Acquisition or abandonment of secured property |
|
See Pub. 4681 |
| |
1099-B |
Stocks, bonds, etc. (box 2) |
|
See the instructions on Form 1099-B |
| |
|
Bartering (box 3) |
|
See Pub. 525 |
| |
|
Aggregate profit or (loss) (box 11) |
|
Form 6781, line 1 |
| |
1099-C |
Canceled debt (box 2) |
|
See Pub. 4681 |
| |
1099-DIV |
Total ordinary dividends (box 1a) |
|
Form 1040, line 9a |
| |
|
Qualified dividends (box 1b) |
|
See the instructions for Form 1040, line 9b, on page 22 |
| |
|
Total capital gain distributions (box 2a) |
|
Form 1040, line 13, or, if required, Schedule D, line 13 |
| |
|
Unrecaptured section 1250 gain (box 2b) |
|
See the instructions for Schedule D, line 19, that begin on page D-8 |
| |
|
Section 1202 gain (box 2c) |
|
See Exclusion of Gain on Qualified Small Business (QSB) Stock in the instructions for Schedule D on page D-4
|
| |
|
Collectibles (28%) gain (box 2d) |
|
See the instructions for Schedule D, line 18, on page D-8 |
| |
|
Nondividend distributions (box 3) |
|
See the instructions for Form 1040, line 9a, on page 22 |
| |
|
Investment expenses (box 5) |
|
Schedule A, line 23 |
| |
|
Foreign tax paid (box 6) |
|
Form 1040, line 47, or Schedule A, line 8. But first see the instructions for line 47 on page 40. |
| |
1099-G |
Unemployment compensation (box 1) |
|
See the instructions for Form 1040, line 19, on page 27. |
| |
|
State or local income tax refunds, credits, or offsets (box 2) |
|
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. |
| |
|
ATAA payments (box 5) |
|
Form 1040, line 21 |
| |
|
Taxable grants (box 6) |
|
Form 1040, line 21* |
| |
|
Agriculture payments (box 7) |
|
See the Instructions for Schedule F or Pub. 225* |
| |
|
Market gain (box 9) |
|
See the Instructions for Schedule F |
| * 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. |
| |
1099-INT |
Interest income (box 1) |
|
See the instructions for Form 1040, line 8a, on page 22 |
| |
|
Early withdrawal penalty (box 2) |
|
Form 1040, line 30 |
| |
|
Interest on U.S. savings bonds and Treasury obligations (box 3) |
|
See the instructions for Form 1040, line 8a, on page 22 |
| |
|
Investment expenses (box 5) |
|
Schedule A, line 23 |
| |
|
Foreign tax paid (box 6) |
|
Form 1040, line 47, or Schedule A, line 8. But first see the instructions for line 47 on page 40. |
| |
|
Tax-exempt interest (box 8) |
|
Form 1040, line 8b |
| |
|
Specified private activity bond interest (box 9) |
|
Form 6251, line 13 |
| |
1099-LTC |
Long-term care and accelerated death benefits |
|
See Pub. 525 and the Instructions for Form 8853 |
| |
1099-MISC |
Rents (box 1) |
|
See the Instructions for Schedule E* |
| |
|
Royalties (box 2) |
|
Schedule E, line 4 (for timber, coal, and iron ore royalties, see
Pub. 544)*
|
| |
|
Other income (box 3) |
|
Form 1040, line 21* |
| |
|
Nonemployee compensation (box 7) |
|
Schedule C, C-EZ, or F. But if you were not self-employed, see the instructions on Form 1099-MISC. |
| |
|
Excess golden parachute payments (box 13) |
|
See the instructions for Form 1040, line 60, on page 46 |
| |
|
Other (boxes 5, 6, 8, 9, 10, and 15b) |
|
See the instructions on Form 1099-MISC |
| |
1099-OID |
Original issue discount (box 1)
Other periodic interest (box 2)
|
|
|
See the instructions on Form 1099-OID |
| |
|
Early withdrawal penalty (box 3) |
|
Form 1040, line 30 |
| |
|
Original issue discount on U.S. Treasury obligations (box 6) |
|
See the instructions on Form 1099-OID |
| |
|
Investment expenses (box 7) |
|
Schedule A, line 23 |
| |
1099-PATR |
Patronage dividends and other distributions from a cooperative (boxes 1, 2, 3, and 5) |
|
Schedule C, C-EZ, or F or Form 4835, but first see the instructions on Form 1099-PATR |
| |
|
Domestic production activities deduction (box 6) |
|
Form 8903, line 21 |
| |
|
Credits (boxes 7, 8, and 10) |
|
See the instructions on Form 1099-PATR |
| |
|
Patron's AMT adjustment (box 9) |
|
Form 6251, line 28 |
| |
|
Deduction for small refiner capital costs or qualified refinery property (box 10) |
|
Schedule C, C-EZ, or F |
| |
1099-Q |
Qualified education program payments |
|
See the instructions for Form 1040, line 21, on page 29 |
| |
1099-R |
Distributions from IRAs** |
|
See the instructions for Form 1040, lines 15a and 15b, that begin on page 24 |
| |
|
Distributions from pensions, annuities, etc. |
|
See the instructions for Form 1040, lines 16a and 16b, that begin on page 25 |
| |
|
Capital gain (box 3) |
|
See the instructions on Form 1099-R |
| |
1099-S |
Gross proceeds from real estate transactions (box 2) |
|
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.
|
| |
|
Buyer's part of real estate tax (box 5) |
|
See the instructions for Schedule A, line 6, on page A-5* |
| |
1099-SA |
Distributions from health savings accounts (HSAs) |
|
Form 8889, line 14a |
| |
|
Distributions from MSAs*** |
|
Form 8853 |
| * 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. |
Line Instructions for Form 1040
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.
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.
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.
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.
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.
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.
Enter your box number only if your post office does not deliver mail to your home.
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.
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.
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 not entitle you to social security benefits or change your employment or immigration
status under U.S. law.
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
-
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.
Check only the filing status that applies to you. The ones that will usually give you the lowest tax are listed last.
More than one filing status can apply to you. Choose the one that will give you the lowest tax.
You can check the box on line 1 if any of the following was true on December 31, 2009.
-
You were never married.
-
You were legally separated, according 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 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 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.
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.
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.
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.
Special rules may apply for people who had to relocate because of the Midwestern storms, tornadoes, or flooding. For details,
see Pub. 4492-B.
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 keeping 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).
-
Any person whom you can claim as a dependent. But do not include:
-
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,
-
Any person who is your dependent only because he or she lived with you for all of 2009, or
-
Any person you claimed as a dependent under a multiple support agreement. See page 19.
-
Your unmarried qualifying child who is not your dependent.
-
Your married qualifying child who is not your dependent only because you can be claimed as a dependent on someone else's 2009
return.
-
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.
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.
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.
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 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.
An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal
adoption.
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.
Nonresident alien spouse.
You are considered 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.
Qualifying Widow(er) With Dependent Child
Special rules may apply for people who had to relocate because 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.
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 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 dependent, see the instructions for line 6c that begin on page 17.
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 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.
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.
Check the box on line 6b if either of the following applies.
-
Your filing status is married filing jointly and your spouse cannot be claimed as a dependent on another person's return.
-
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.
-
Your spouse had no income and is not filing a return.
-
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.
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).
Special rules may apply for people who had to relocate because of the Midwestern storms, tornadoes, or flooding. For details,
see Pub. 4492-B.
Step 1. Do You Have a Qualifying Child?
1. Do you have a child who meets the conditions to be your qualifying child?
Go to Step 2.
Go to Step 4 on page 18.
Step 1. Is Your Qualifying Child YourDependent?
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.)
You cannot claim this child as a dependent. Go to Form 1040, line 7.
1. Was the child married?
See Married person on page 19.
1. 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.
You cannot claim any dependents. Go to Form 1040, line 7.
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.
Step 1. Does Your Qualifying ChildQualify You for the Child Tax Credit?
1. Was the child under age 17 at the end of 2009?
This child is not a qualifying child for the child tax credit. Go to Form 1040, line 7.
1. 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.)
This child is a qualifying child for the child tax credit. Check the box on Form 1040, line 6c, column (4).
This child is not a qualifying child for the child tax credit. Go to Form 1040, line 7.
Step 1. Is Your Qualifying Relative Your Dependent?
1. Does any person meet the conditions to be your qualifying relative?
Go to Form 1040, line 7.
1. 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.)
You cannot claim this person as a dependent. Go to Form 1040, line 7.
1. Was your qualifying relative married?
See Married person on page 19.
1. 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.
You cannot claim any dependents. Go to Form 1040, line 7.
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).
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.
Adoption taxpayer identification numbers (ATINs).
If you have a 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 as the qualifying child or qualifying relative of his or her noncustodial parent (defined
on page 19) if all of the following conditions apply.
-
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).
-
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.
-
The child is in custody of one or both of the parents for more than half of 2009.
-
Either of the following applies.
-
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.
-
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.
-
The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support.
-
The other parent will not claim the child as a dependent.
-
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.
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).
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.
-
Dependency exemption (line 6c).
-
Child tax credits (lines 51 and 65).
-
Head of household filing status (line 4).
-
Credit for child and dependent care expenses (line 48).
-
Exclusion for dependent care benefits (Form 2441, Part III).
-
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.
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 security number (SSN). Be sure the name and SSN entered agree 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.
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 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.
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 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.
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 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.
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) W-2. They are not included as income in box
1. See Pub. 531 for more details.
You may owe social security and Medicare tax on unreported or allocated tips. See the instructions for line 57 on page 45.
-
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.
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. 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.
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.
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.
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.
If you get a 2009 Form 1099-INT for U.S. savings bond interest that includes amounts you reported before 2009, see Pub. 550.
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.
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.
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.
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 reported 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.
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.
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).
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.
Be sure you use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet, whichever applies, to figure your tax. Your tax may be less if you use the worksheet that applies.
See the instructions for line 44 that begin on page 37 for details.
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.
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 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 Recoveries in Pub. 525 instead of using the worksheet below if any of the following applies.
-
You received a refund in 2009 that is for a tax year other than 2008.
-
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.
-
The amount on your 2008 Form 1040, line 42, was more than the amount on your 2008 Form 1040, line 41.
-
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.
-
You made your last payment of 2008 estimated state or local income tax in 2009.
-
You owed alternative minimum tax in 2008.
-
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.
-
You could be claimed as a dependent by someone else in 2008.
-
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.
-
You could not deduct all of the amount on the 2008 Itemized Deductions Worksheet, line 1.
-
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.
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.
State and Local Income Tax Refund Worksheet—Line 10
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.
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 Schedule 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 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 do not have to file Schedule D, use the Qualified Dividends and Capital Gain Tax Worksheet on page 39 to figure your
tax. Your tax is usually less if you use this worksheet.
If you sold or exchanged assets used in a trade or business, see the Instructions for Form 4797.
Special rules may apply to your IRA distributions if your main home was in a Midwestern disaster area. For details, see Pub.
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 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.
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.
-
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.
-
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.
-
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.
-
Distribution code Q is shown in box 7 of Form 1099-R.
-
You converted part or all of a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2009.
-
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.
-
You made excess contributions to your IRA for an earlier year and had them returned to you in 2009.
-
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.
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 70½ 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.
You cannot claim a charitable contribution deduction for any QCD not included in your income.
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.
The amount of an HFD reduces the amount you can contribute to your HSA for the year. If you 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.
You may have to pay an additional tax if you received an early distribution from your IRA and the total was not rolled over.
See the instructions for line 58 on page 45 for details.
Special rules may apply if you received a distribution from a profit-sharing or retirement plan and your main home was 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.
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.
Simplified Method Worksheet—Lines 16a and 16b
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.
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.
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:
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.
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 must use the Simplified Method if either of the following applies.
-
Your annuity starting date (defined above) was after July 1, 1986, and you used this method last year to figure the taxable
part.
-
Your annuity starting date was after November 18, 1996, and both of the following apply.
-
The payments are from a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity.
-
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.
If you received U.S. Civil Service retirement benefits and you chose the alternative annuity option, see Pub. 721 to figure
the taxable part of your annuity. Do not use the worksheet below.
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 annuity 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.
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.
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 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 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.
Rollover to a Roth IRA or a designated Roth account from a designated Roth account.
Enter on 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 the amount of the qualified rollover. Enter the remaining
amount, even if zero, on line 16b. Also, enter “ Rollover” next to line 16b.
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.
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.
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 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.
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 page 28 if any of the following applies.
-
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.
Social Security Benefits Worksheet—Lines 20a and 20b
Do not report on this line any income from self-employment or fees received as a notary 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.
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 Coverdell ESA or a QTP. See the Instructions
for Form 5329.
You may have to pay an additional tax if you received a taxable distribution from an HSA or an Archer MSA. See the Instructions
for Form 8889 for HSAs or the Instructions for Form 8853 for Archer MSAs.
Attach Form(s) W-2G to
Form 1040 if any federal income tax was withheld.
-
Taxable distributions from a health 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.
-
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.
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.
For more details, use TeleTax topic 458 (see page 94) or see Pub. 529.
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.
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.
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.
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.
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
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.
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.
Self-Employed Health Insurance Deduction Worksheet—Line 29
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:
-
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 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.
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.
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.
If you made any nondeductible contributions to a traditional individual retirement arrangement (IRA) for 2009, you must report
them on Form 8606.
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.
-
If you were age 70½ 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.
-
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.
If you are filing a joint return and you or your spouse made contributions to both a traditional 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.
-
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.
-
If you made contributions to your IRA in 2009 that you deducted for 2008, do not include them in the worksheet.
-
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.
-
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.
-
Do not include qualified rollover contributions in figuring your deduction. Instead, see the instructions for lines 15a and
15b that begin on page 24.
-
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.
-
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.
-
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.
-
You may be able to deduct up to an additional $3,000 if all the following conditions are met.
-
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.
-
You must have been a participant in the 401(k) plan 6 months before the employer filed for bankruptcy.
-
The employer (or a controlling corporation) must have been a debtor in a bankruptcy case in an earlier year.
-
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.
By April 1 of the year after the year in which you turn age 70½, 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.
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-employed 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 your spouse was, you are considered covered by a plan unless you
lived apart from your spouse for all of 2009.
You may be able to take the retirement savings contributions credit. See the instructions for line 50 that begin on page 40.
IRA Deduction Worksheet—Line 32
If you were age 70½ 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 70½ or older at the end of 2009. If you are married filing jointly and only one spouse
was under age 70½ at the end of 2009, complete this worksheet only for that spouse.
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