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The 1040: box-by-box

You must use Form 1040, the granddaddy of all federal income tax returns, if you're going to itemize deductions, if you have income adjustments, if you have taxes in addition to your income taxes or if you have tax credits.

So, if you're ready to use Form 1040 for your federal income tax return, here is a box-by-box description to help you along.

1040 label

Income Adjustments include:
  • Alimony paid
  • Penalty for early withdrawal from certain savings accounts
  • Deduction for self-employment tax
  • Self-employed health insurance
  • Medical savings account deduction
  • Moving expenses

If you received a tax package from the IRS with a peel-off label including your name and address, just stick it on here. If any of the information is incorrect, make the correction directly on the label. Make sure any changes are easy to read. If you didn't receive a tax package, fill in the information requested, including your first name, middle initial and last name. If you're filing a joint return, include your spouse's first name, middle initial and last name. Then fill in your home address, including your ZIP code.

You must enter your Social Security number in the boxes provided at the upper right-hand corner of the form. If you're married, whether you're filing jointly or separately, you must enter your spouse's Social Security number underneath yours. Be sure that any Social Security numbers on your return are identical to the Social Security numbers on the corresponding Social Security cards. The IRS will not process a return if it's missing a Social Security number, or if the number is wrong, and you may end up paying a penalty.

Next comes a question about giving $3 to the Presidential Election Campaign Fund. You must check off either "Yes" or "No," and if you're married filing jointly, your spouse must do the same. No matter what the decision is, the amount of tax that you owe or the refund you receive will not be affected.

1040 filing status

Other Taxes include:
  • Self-employment tax
  • Tax on retirement plans
  • Social Security and Medicare tax on tips not reported to employer
  • Uncollected Social Security and Medicare tax shown on Form W-2
  • Tax on lump sum distributions
  • Household employment taxes

Of the five boxes, check only the one that applies to you.

Line 1
"Single" if any of the following was true on Dec. 31, 1999:

  • You were never married,
  • You were legally separated or divorced, or
  • You were widowed before Jan. 1, 1999, and didn't remarry in 1999.

 

Line 2
"Married Filing Jointly" if any of the following is true:

  • You were married as of Dec. 31, 1999, even if you didn't live with your spouse at the end of 1999,
  • Your spouse died in 1999 and you didn't remarry in 1999, or
  • Your spouse died in 2000 before filing a 1999 return.

Line 3
"Married Filing Separately" if you're filing a separate return from your spouse.

  • You're not entitled to certain tax credits if you're using this filing status.

 

Tax Credits include:
  • General business credit
  • Foreign tax credit
  • Credit for federal tax on fuels
  • Mortgage interest credit
  • Credit for prior year minimum tax

Line 4
"Head of Household" if as of Dec. 31, 1999, you were unmarried or legally separated and one of the following applies to you:

  • You paid more than half the cost of keeping up a home for all of 1999 for your parent whom you claim as a dependent. (Your parent didn't have to live with you in your home.)
  • You paid more than half the cost of keeping up a home in which you lived and in which any one of the following also lived for more than half of the year.
    1. Your unmarried child, adopted child, grandchild, great-grandchild or stepchild. (This child does not have to be your dependent.)
    2. Your married child, adopted child, grandchild, great-grandchild or stepchild. (This child must be your dependent.)
    3. Your foster child, who must be your dependent.
    4. Any other relative you can claim as a dependent.
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Line 5
"Qualifying Widower" if all five of the following apply:

  1. Your spouse died in 1997 or 1998 and you did not remarry in 1999.
  2. You have a child, adopted child, stepchild or foster child, whom you can claim as a dependent.
  3. This child lived in your home for all of 1999.
  4. You paid more than half the cost of keeping up your home.
  5. You could have filed a joint return with your spouse the year he or she died, even if you didn't actually do so.

1040 exemptions

You usually can deduct $2,750 on line 38 of Form 1040 for each exemption that you take.

If your income exceeds the following amounts, your reduction for personal exemptions is limited:

  • Single -- $126,600
  • Married Filing Jointly or Qualifying Widow/Widower -- $189,950
  • Married Filing Separately -- $94,975
  • Head of Household -- $158,300

To figure out your reduction, use the "Deduction for Exemptions Worksheet" on page 31 of the 1040 instruction booklet.

Line 6a
Check this box if no one can claim you as a dependent.

Line 6b
Check this box if you're filing:

  • A joint return or
  • A separate return and your spouse had no income and isn't filing a return.

* On the extreme right, you'll see a line. Enter "1" or "2," depending on the number of boxes you checked on lines 6a and 6b.

Line 6c
List any dependents you had in 1999. In column 1, write the dependent's first and last name. Enter his or her Social Security number in column 2. Fill in the dependent's relationship to you in column 3. Check the box in column 4 if the dependent qualifies for the child tax credit. (If you have at least one qualifying child, you may be able to take the child tax credit on line 43 of Form 1040.)

* On the extreme right, you'll see several lines regarding your dependents. Enter the appropriate numbers.

Line 6d
In the box, write the sum of the numbers on the lines that you filled in.

1040 income

Line 7
For most people, this number comes from Form W-2, Wage and Tax Statement, which should be sent to you from all employers in 1999. Add up the numbers from box 1 on all of your W-2's, and put the total on line 7 of Form 1040.

You also must include the following types of income in the total on line 7 of Form 1040:

  • Any wages you received as a household employee, even if you didn't get a W-2.
  • Tip income you didn't report to your employer.
  • Allocated tips, which would appear in box 8 of your W-2. (Allocated tips are not included as income in box 1.)
  • Dependent care benefits, which should be shown in box 10 of your W-2.
  • Employer- provided adoption benefits, which should be shown in box 13 of your W-2 with code "T."
  • Scholarship and fellowship grants not reported on a W-2. (If you're a degree candidate, only include the amounts used for expenses that weren't related to tuition and courses -- such as room, board and travel.)
  • Disability pensions shown on Form 1099-R, if you haven't reached the minimum retirement age set by your employer.

* For all monetary entries on your return, the IRS allows you to round off cents to whole dollars. To round off, drop amounts under 50 cents, and increase amounts from .51 to .99 to the next dollar. If you're rounding off one entry, you must round off all entries.

And don't forget to attach copy B of all your W-2 forms in the space indicated on the 1040. Also attach all 1099-R forms if tax was withheld.

Line 8a
Taxable interest includes interest that you receive from bank accounts and certain dividends. This number generally comes from box 1 on Form 1099-INT, Interest Income, sent by the payer. Report the total amount of interest income that is shown on any Form 1099-INT or Form 1099-OID that you received for 1999, on line 8a of Form 1040. You must fill in and attach Schedule B if the total is more than $400.

Line 8b
If you received any tax-exempt interest in 1999, such as from municipal bonds or mutual funds, report it on line 8b.

Line 9
If you received ordinary dividends in 1999, each payer should have sent you a Form 1099-DIV. Report your total ordinary dividends on line 9. If the total is more than $400, or if you received ordinary dividends as a nominee (in your name but the dividends actually belong to someone else), you must fill in and attach Schedule B.

Line 10
If you received a refund, credit or offset of state or local income taxes in 1999, you may receive a Form 1099-G. If you choose to apply part or all of the refund to your 1999 estimated state or local income tax, the amount applied is treated as received in 1999. If the refund you received was for a tax paid in 1998 and you itemized deductions for 1998, use the worksheet on page 21 of the 1040 instruction booklet to see if any of your refund is taxable.

Line 11
If you received taxable alimony in 1999, it's included in income. Report it on line 11.

Line 12
If you operated a business in 1999, report your income and expenses on Schedule C or C-EZ.

Line 13
If you had a capital gain or loss in 1999, including any capital gain distribution from a mutual fund, you must complete and attach Schedule D.

You don't have to include Schedule D if all three of the following apply:

  1. The only amounts you have to report on Schedule D are capital gain distributions from box 2a of Forms 1099-DIV or substitute statements.
  2. None of the Forms 1099-DIV or substitute statements have an amount in box 2b, 2c or 2d.
  3. If you're filing Form 4952, the amount on line 4e of that form is not more than zero.

If all three of the above apply, enter your capital gain distributions on line 13 of Form 1040 and check the box on that line.

Also, be sure to use the Capital Gain Tax Worksheet on page 32 of the 1040 instruction booklet to figure your tax.

Line 14
If you sold or exchanged assets used in a trade or business, use Form 4797.

Lines 15a and 15b
If you received any distributions from an individual retirement account in 1999, you should have a Form 1099-R showing the amount. An IRA includes a traditional IRA, Roth IRA, education (Ed) IRA, simplified employee pension (SEP) IRA and a savings incentive match plan for employees (SIMPLE) IRA. Leave line 15a blank and enter the total distribution on line 15b.

Don't enter your total IRA distribution on line 15b if any of the following apply:

  1. You made nondeductible contributions to any of your traditional or SEP IRAs for 1999 or an earlier year. Instead, use Form 8606 to determine the amount to enter on line 15b; enter the total distribution on line 15a.
  2. You converted all or part of a traditional, SEP or SIMPLE IRA to a Roth IRA in 1999. If so, use Form 8606 to determine the amount to enter on line 15b; enter the total distribution on line 15a.
  3. You made an excess contribution to your IRA in 1999 and withdrew it sometime between Jan. 1, 2000, and April 17, 2000. Enter the total distribution on line 15a and the taxable part (the earnings) on line 15b.
  4. You received a distribution from an Ed or Roth IRA and the total distribution was not rolled over into another IRA of the same type. Use Form 8606 to determine the amount to enter on line 15b; enter the total distribution on line 15a.
  5. You rolled your IRA distribution over into another IRA of the same type, such as from one traditional IRA to another traditional IRA. Enter the total distribution on line 15a and enter "Rollover" on line 15b. If the total on line 15a was rolled over, enter zero on line 15b. If the total wasn't rolled over, enter the part not rolled over on line 15b. If item 1 above also applies, use Form 8606 to figure the taxable part.

Lines 16a and 16b
You should have received a Form 1099-R showing the amount of any pension and annuity payments you acquired in 1999.

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 either of the following applies:
    1. You did not contribute to the cost of your pension or annuity. Your cost is generally your net investment in the plan as of the annuity starting date -- it should be shown in box 9b of Form 1099-R for the first year you received payments from the plan.
    2. You got back your entire cost tax-free before 1999.

If your pension or annuity is partially taxable and your Form 1099-R doesn't show the taxable part, you need to use the General Rule, explained in IRS Pub. 939, to determine the taxable part. Once you've figured the taxable part of your pension or annuity, enter that amount on line 16b and the total on line 16a.

Line 17
If you obtained income from rental real estate, royalties, partnerships, S corporations or trusts in 1999, you must complete and attach Schedule E.

Line 18
If you gained or lost income from a farm in 1999, you must complete and attach Schedule F.

Line 19
Unemployment compensation is subject to tax. If you received any unemployment compensation in 1999, you should have received a Form 1099-G, showing the amount paid to you for the year. This number is included as part of your income, enter it on line 19.

Line 20
If you acquired Social Security benefits in 1999, you should have received a Form SSA-1099. Box 3 shows the amount of benefits paid to you. Box 4 shows the amount of any benefits you repaid in 1999.

If you acquired railroad retirement benefits treated as Social Security, you should have received a Form RRB-1099.

To figure out if any of your benefits are taxable, use the "Social Security Benefits Worksheet" on page 25 of the 1040 instruction booklet.

Line 21
Use this line to report any other taxable income not reported on your return or other schedules, such as: prizes and awards; gambling winnings; jury duty fees; Alaska Permanent Fund dividends; qualified state tuition program earnings; and reimbursements or other amounts received for items deducted in an earlier year.

List the type and amount of income. Use a separate sheet and attach it if necessary.

Line 22
Add lines 7 through 21. Enter the sum in the far right column. This number represents your total income.

Adjusted gross income

Line 23
If you contributed to a traditional individual retirement arrangement in 1999, you may be able to claim an IRA deduction on this year's tax return. You (and your spouse if filing a joint return) must have earned income in 1999. However, your modified adjusted gross income can't exceed certain thresholds.

Use the worksheet on page 27 of the 1040 instruction booklet to calculate the amount of your IRA deduction.

You can't deduct contributions:

  • To a Roth IRA or an education IRA
  • To a 401(k) plan, SIMPLE plan or Federal Thrift Savings Plan
  • To your traditional IRA for 1999 if you were 70-1/2 or older at the end of 1999
  • To your IRA in 1999 that you deducted in 1998

Line 24
Use the worksheet on page 28 of the 1040 instruction booklet to figure out your student loan interest deduction if all five of the following apply:

  1. You paid interest in 1999 on a qualified student loan.
    A qualified student loan is any loan that you took out to pay higher education expenses, including tuition, room and board, and books, for yourself, your spouse or anyone that was your dependent when you took out the loan. The person for whom the expenses were paid must have been an eligible student. An eligible student is a person enrolled in a degree, certificate or other program leading to a recognized educational credential at an eligible educational institution, and the person carried at least half the normal full-time workload for the course of study that he or she was pursuing.
  2. At least part of the interest paid in 1999 was paid during the first 60 months that payments were required.
  3. Your filing status is anything but "Married Filing Separately"
  4. On your Form 1040, the amount on line 22 minus the total of lines 25 through 31a is less than $55,000 if you're filing as "Single," "Head of Household" or "Qualifying Widow(er)," or less than $75,000 if you're filing "Married Filing Jointly."
  5. You're not claimed as a dependent on anyone else's 1999 tax return.

Line 25
If you made contributions to a medical savings account for 1999, you may be able to take this deduction. See Form 8853.

Line 26
If you moved in connection with your job or started a new job, you may be able to take this deduction. See Form 3903.

Line 27
If you were self-employed and owe self-employment tax, fill in Schedule SE to figure the amount of your deduction.

Line 28
You may be able to deduct part of the amount paid for health insurance for yourself, your spouse and dependents if either of the following applies:

  • You were self-employed and had a net profit for the year.
  • You received wages in 1999 from an S corporation in which you were a more-than-2-percent shareholder. Health insurance benefits paid for you may be shown in box 14 of your W-2 form.

If you qualify to take this deduction, use the worksheet on page 29 of the 1040 instruction booklet to figure the amount you can deduct.

Use Pub. 535 instead of the worksheet on page 29 to find out how to figure your deduction if any of the following apply:

  • You had more than one source of income subject to self-employment tax.
  • You file Form 2555 or 2555-EZ for foreign earned income.
  • You're using amounts paid for qualified long-term care insurance to figure the deduction.

Line 29
If you were self-employed or a partner, you may be able to take this deduction. See Pub. 560.

Line 30
The Form 1099-INT or Form 1099-OID you received will show the amount of any penalty you were charged for early withdrawal from a savings account.

Lines 31a and 31b
If you paid alimony, you may be able to take this deduction. See Pub. 504. You must enter the recipient's Social Security number.

Line 32
Include in the total on line 32 any of the following adjustments:

  • Performing-arts-related expenses. See Form 2106 or 2106-EZ. Identify as "QPA."
  • Jury duty pay given to your employer. See Pub. 525. Identify as "Jury Pay."
  • Deductible expenses related to income reported on line 21 from the rental of personal property. Identify as "PPR."
  • Reforestation amortization. See Pub. 535. Identify as "RFST."
  • Repayment of supplemental unemployment benefits under the Trade Act of 1974. See Pub. 525. Identify as "Sub-Pay TRA."
  • Contributions to section 501(c)(18) pension plans. See Pub. 575. Identify as "501(c)(18)."
  • Deduction for clean-fuel vehicles. See Pub. 535. Identify as "Clean-Fuel."

On the dotted line next to line 32, enter the amount of your deduction and identify it as indicated.

Line 33
If line 33 is less than zero, you may have a net operating loss that you can carry to another tax year. See Pub. 536.

Tax and credits

Line 34
Carry over the amount entered on line 33. This number represents your adjusted gross income.

Line 35a

  • If you were age 65 or older on Jan. 1, 2000, check the appropriate box.
  • If you were blind as of Dec. 31, 1999, check the appropriate box.
  • If you were married, and claimed your spouse as an exemption on line 6b of Form 1040, and your spouse was age 65 or older or blind, check the appropriate boxes for your spouse.

Remember to enter the total number of boxes checked in the box on the far right.

If any of these boxes are checked or you (or your spouse if filing jointly) can be claimed as a dependent, use the "Standard Deduction" chart or worksheet on page 30 of the 1040 instruction booklet.

Line 35b
If you're "Married Filing Separately" and your spouse itemizes deductions or if you were a dual-status alien, check the box on line 35b. If you check this box, your standard deduction is zero.

Line 36
In most cases, your Federal income tax will be less if you take the larger of:

  • Your itemized deductions or
  • Your standard deduction

To calculate your itemized deductions, fill in Schedule A.

Otherwise, enter the standard deduction for your filing status. The amounts are listed on the form.

Line 37
Subtract line 36 from line 34.

Line 38
If line 34 is $94,975 or less, multiply the total number of exemptions claimed on line 6d by $2,750 (the personal and dependent exemption amount). If line 34 is more than $94,975, use the "Deduction for Exemptions" worksheet on page 31 of the 1040 instruction booklet.

Line 39
Subtract line 38 from line 37. If line 38 is more than line 37, enter zero. This number represents your taxable income.

Line 40
To figure out the tax you should pay:

  • If your taxable income is less than $100,000, use the Tax Table, which starts on page 59 of the 1040 instruction booklet.
  • If your taxable income is $100,000 or more, use the Tax Rate Schedules on page 69 of the 1040 instruction booklet.
  • If you used Schedule D for capital gains and losses in 1999, and both lines 16 and 17 of Schedule D are gains, and the amount on line 39 of your Form 1040 is more than zero, then use part IV of Schedule D.
  • If you received capital gains in 1999 but you didn't have to fill out Schedule D, then use the worksheet on page 32 of the 1040 instruction booklet.

Line 41
You may be able to take the "Credit for Child and Dependent Care Expenses" if you paid someone to care for your child under age 13, or your dependent or spouse who couldn't care for himself or herself in 1999.

To determine if you're eligible to receive this credit and how much it will be, you'll need to fill in and attach Form 2441.

Line 42

You may be able to take the "Credit for the Elderly or Disabled" if by the end of 1999:

  1. You were age 65 or older, or
  2. You retired on permanent and total disability and received taxable disability income.

Usually, you can't take the credit if the amount on line 34 of your Form 1040 is:

  • $17,500 or more if you're "Single"
  • $20,000 or more if you're "Married Filing Jointly" and only one spouse is eligible for the credit.
  • $25,000 or more if you're "Married Filing Jointly" and both spouses are eligible for the credit.
  • $12,500 or more if you're "Married Filing Separately."

To determine if you're eligible to receive this credit and how much it will be, you'll need to fill in and attach Schedule R.

Line 43
The "Child Tax Credit" is for people with at least one qualifying child.

A qualifying child for the "Child Tax Credit" meets the following four requirements:

  1. Is claimed as your dependent on line 6c of your Form 1040.
  2. Was under age 17 at the end of 1999.
  3. Is your son, daughter, adopted child, grandchild, stepchild or foster child.
  4. Is a U.S. citizen or resident alien.

* Make sure you checked the box in column (4) of line 6c on Form 1040 for each qualifying child.

To determine the credit that you can claim, answer the following questions:

  1. Are you excluding income from Puerto Rico or are you filing Forms 2555 or 2555-EZ (relating to foreign earned income) or Form 4563 (exclusion of income for residents of American Samoa)?
  2. If your answer is "Yes," you must use Pub. 972 to figure your credit.

    If your answer is "No," continue on to the next question.

  3. Is the amount on Form 1040, line 34, more than the amount shown below for your filing status?
  • Married Filing Jointly -- $110,000
  • Single, Head of Household or Qualifying Widow/Widower -- $75,000
  • Married Filing Separately -- $55,000

If your answer is "Yes," you must use Pub. 972 to figure your credit.

If your answer is "No," go on to the next question.

  1. Do you have three or more qualifying children for the child tax credit?
  2. If your answer is "No," use the worksheet on page 34 of the 1040 instruction booklet to figure your credit.

    If your answer is "Yes," go on to the next question.

  3. Are you claiming any of the following credits?

If your answer is "No," use the worksheet on page 34 of the 1040 instruction booklet to figure your child tax credit.

If your answer is "Yes," you must use Pub. 972 to figure your child tax credit.

Line 44
There are two education credits that can be claimed: the "Hope Credit" and the "Lifetime Learning Credit."

If you or your dependent paid expenses in 1999 for yourself, your spouse or your dependent to attend the first two years of college, you may be able to take the Hope Credit. The Hope Credit provides a credit of $1,500 per student per year.

The Lifetime Learning Credit entitles you to a 20 percent credit on up to $5,000 of tuition expenses in 1999. Any course to acquire or improve job skills applies. This $1,000 credit is per family and not per student.

You can't take either credit if:

  1. Your filing status is "Married Filing Separately" or
  2. You're claimed as a dependent on someone else's tax return.

Fill in and attach Form 8863 to claim an education credit.

Line 45
You may be able to take the "Adoption Credit" if you paid expenses after 1996 to adopt a child.

Fill in and attach Form 8839 to claim the adoption credit.

Line 46
If you paid income tax to a foreign country, you may be able to take the "Foreign Tax Credit."

Fill in and attach Form 1116 to claim the foreign tax credit.

You don't have to file Form 1116 to take this credit if all five of the following apply:

  1. All of your gross foreign-source income is from interest and dividends and all of that income and the foreign tax paid on it is reported to you on Form 1099-INT or Form 1099-DIV.
  2. If you have dividend income from shares of stock and you held those shares for at least 16 days.
  3. You're not filing Form 4563 or excluding income from sources within Puerto Rico.
  4. The total of your foreign taxes isn't more than $300 (not more than $600 if married filing jointly).
  5. All of your foreign taxes were:
  • Legally owed and not eligible for a refund, and
  • Paid to countries that are recognized by the United States and don't support terrorism.

If you meet all five requirements, enter your total foreign tax on line 46.

Line 47
Include in the total on line 47 any of the following credits and check the appropriate boxes.

  • Box a: Form 3800 for a general business credit.
  • Box b: Form 8396 for a mortgage interest credit.
  • Box c: Form 8801 for a credit for prior year minimum tax.
  • Box d: Any other forms for a tax credit, including Form 8834 for a qualified electric vehicle credit, Form 8844 for an empowerment zone employment credit or Form 8859 for a District of Columbia first-time home buyer credit.

Line 48
Add lines 41 through 47. Enter the sum in the far right column. This number represents your total credits.

If you sold fuel produced from a non-conventional source, you may be able to take the "Non-conventional Source Fuel Credit." Include the credit in the total on line 48. Enter the amount and "FNS" on the dotted line next to line 48.

Line 49
Subtract line 48 from line 40. If line 48 is more than line 40, enter zero in the far right column.

1040 Other Taxes

Line 50
Self-employment tax is Social Security and Medicare tax for individuals who are self-employed.

Fill in and attach Schedule SE for the self-employment tax.

Line 51
The alternative minimum tax ensures that no taxpayers with substantial economic income can avoid significant tax liability by using exclusions, deductions and credits.

Fill in Form 6251 if you claimed or received any of the following items in 1999:

  1. Accelerated depreciation
  2. Income from incentive stock options
  3. Tax-exempt interest from private activity bonds
  4. Intangible drilling, circulation, research, experimental or mining costs
  5. Amortization of pollution-control facilities or depletion
  6. Income or loss from tax-shelter farm activities or passive activities
  7. Percentage-of-completion income from long-term contracts
  8. Interest paid on a home mortgage NOT used to buy, build or improve your home
  9. Investment interest expense reported on Form 4952
  10. Net operating loss deduction
  11. Alternative minimum tax adjustments from an estate, trust, electing large partnership or a cooperative
  12. Section 1202 exclusion

If none of these apply, then use the worksheet on page 36 of the 1040 instruction booklet to see if you should fill in Form 6251.

Line 52
If you received tips of $20 or more in any month in 1999, and you didn't report the full amount to your employer, you must pay the Social Security and Medicare or railroad retirement tax on the unreported tips.

You must also pay this tax if your W-2 forms show allocated tips that you're including in your income on line 7 of your 1040.

To figure the tax, use Form 4137. To pay the railroad retirement tax, contact your employer. Your employer will figure and collect the tax.

Line 53
If any of the following apply, use Form 5329 to see if you owe this tax:

  1. You received any early distributions from an IRA or other qualified retirement plan, an annuity or a modified endowment contract entered into after June 20, 1998.
  2. You made excess contributions to your IRA or MSA.
  3. You were born before July 1, 1928, and didn't take the minimum required distribution from your IRA or other qualified retirement plan.

If only item 1 applies to you and distribution code 1 appears in box 7 of your Form 1099-R, you don't have to file Form 5329. Instead, multiply the taxable amount of distribution (what you reported on line 15b or line 16b of Form 1040 or on line 19 of Form 4972) by 10 percent. Enter the result on line 53. Also, put "No" next to line 53 to indicate that you don't have to file Form 5329.

Line 54
If you received advance earned income credit payments in 1999, enter the total amount on line 54. EIC payments appear in box 9 of your W-2 forms.

Line 55
If you have a household employee and any of the following apply, see Schedule H to find out if you owe "Household Employment Taxes."

  1. You paid $1,100 or more to any one household employee (babysitter, nanny, health aide, maid or yard worker) in 1999. Amounts paid to anyone who was under age 18 and a student at any time in 1999 don't count.
  2. You withheld federal income tax during 1999 at the request of any household employee.
  3. You paid $1,000 or more to all household employees in any calendar quarter of 1998 or 1999.

Line 56
Add lines 49 through 55. This number represents your total tax.

Include in the total on line 56 any of the following:

  • Recapture of Investment Credit. See Form 4255. Identify as "ICR."
  • Recapture of Low-income Housing Credit. See Form 8611. Identify as "LIHCR."
  • Recapture of Qualified Electric Vehicle Credit. See Pub. 535. Identify as "QEVCR."
  • Recapture of Indian Employment Credit. Identify as "IECR."
  • Recapture of Federal Mortgage Subsidy. See Form 8828. Identify as "FMSR."
  • Section 72(m)(5) Excess Benefits Tax. See Pub. 560. Identify as "Sec. 72(m)(5)."
  • Uncollected Social Security and Medicare or RRTA Tax on Tips or Group-Term Life Insurance. This tax should appear in box 13 of your W-2 forms with codes A and B or M and N. Identify as "UT."
  • Golden Parachute Payments. This tax should appear in box 13 of your W-2 forms with code K. Identify as "EPP."
  • Tax on Accumulation Distribution of Trusts. Enter the amount from Form 4970 and identify as "ADT."

To find out if you owe the tax, see the form or publication indicated. On the dotted line next to line 56, enter the amount of the tax and identify it as indicated.

1040 Payments

Line 57
Add the amounts shown as Federal income tax withheld on your Forms W-2, W-2G, 1099-R, 1099 and SSA-1099. Enter the total on line 57.

Federal income tax withheld appears in:

  • Box 2 of Form W-2
  • Box 2 of Form W-2G
  • Box 4 of Form 1099-R
  • Box 4 of Form 1099
  • Box 6 of Form SSA-1099

Line 58
Enter any payments you made on your estimated Federal income tax (Form 1040-ES) for 1999. Include any overpayment from your 1998 return that you applied to your 1999 estimated tax.

Lines 59a and 59b
The "Earned Income Credit" is a tax benefit for people who work, but don't earn high incomes. Those who qualify could pay less federal tax, or even get a tax refund. To see if you qualify for this credit, refer to page 38 of the 1040 instruction booklet.

If you can take the Earned Income Credit and you don't have a qualifying child, complete the EIC worksheet on page 42 of the 1040 instruction booklet.

If you can take the Earned Income Credit and you have a qualifying child, complete and attach Schedule EIC.

Line 60
The "Additional Child Tax Credit" is a tax benefit for people with three or more qualifying children.

A qualifying child for the "Child Tax Credit" meets the following four requirements:

  1. Is claimed as your dependent on line 6c of your Form 1040.
  2. Was under age 17 at the end of 1999.
  3. Is your son, daughter, adopted child, grandchild, stepchild or foster child.
  4. Is a US citizen or resident alien.

* Make sure you checked the box in column (4) of line 6c on Form 1040 for each qualifying child.

Use Form 8812 to figure out if you can claim the Additional Child Tax Credit.

Line 61
If you either filed Form 4868 or used your credit card to get an automatic extension of time to file Form 1040, enter the amount you paid.

If you paid by credit card, don't include on line 61 the convenience fee you were charged.

Also, include any amounts paid with Form 2688 or 2350.

Line 62
If you (or your spouse if filing a joint return) had more than one employer and earned more than $72,600 in 1999, too much Social Security tax may have been withheld. You can take a credit on line 62 for the amount withheld in excess of $4,501.20.

If you had more than one railroad employer for 1999 and your total compensation topped $53,700, too much railroad retirement tax may have been withheld. For more details, see Pub. 505.

Line 63
Check the appropriate boxes on line 63 to report any credit from Form 2439 or 4136.

Line 64
Add lines 57, 58, 59a and 60 through 63. Enter the sum in the far right column. This number represents your total payments.

1040 Refund

Line 65
If line 64 is more than line 56, hooray, you're going to get money back from Uncle Sam. Subtract line 56 from line 64. This number represents the amount that you overpaid the government.

Line 66a
Enter the amount from line 65 that you want refunded to you.

Line 66b
If you'd like to have your refund directly deposited into an account, enter the routing number. The routing number must be nine digits. If you have any question about what your routing number is, contact your financial institution.

Line 66c
Check the appropriate box: checking or savings.

Line 66d
Your account number can be up to 17 characters, consisting of both letters and numbers. Be sure not to include the check number.

Line 67
Enter the amount, if any, of the overpayment on line 65 that you want applied to your estimated tax for 2000.

If you elect now to apply all or part of the amount overpaid to your 2000 estimated tax, you can't change it later.

Line 68
If line 56 is larger than line 64, then you'll have to dish out some money to the government. Subtract line 64 from line 56. The number you calculate is the amount you owe.

If you pay by check or money order, make it out to the "United States Treasury." Enclose your payment with your return, but don't attach it to the form.

Line 69
You may owe an estimated tax penalty if:

  1. Line 68 is at least $1,000 and it's more than 10 percent of the tax shown on your return or
  2. You didn't pay enough estimated tax by any of the due dates, even if you're due a refund.

Use Form 2210 to find out if you owe the penalty. If so, you can use the form to figure the amount. Enter the penalty on line 69 of your 1040.

1040 Signature

Finally, you've reached the end. Sign your name, and write in the date, your occupation and your daytime telephone number.

If you're filing a joint return, be sure that your spouse signs the bottom of the form as well, dates it and includes his or her occupation. Form 1040 is considered incomplete if it's missing a signature.

Last but not least, assemble any schedules and forms behind Form 1040 in order of their "Attachment Sequence No." shown in the upper right corner.

Attach the first copy or Copy B of Forms W-2, W-2G and 2439 to the front of Form 1040. Also, attach 1099-R forms if tax was withheld.

Now you're ready, and more than willing to drop the tax return package into the mail. Do your best to get it postmarked no later than April 17. Mission accomplished!


 

-- Posted March 22, 2000

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