2001 Instructions for Form 1040NR - Uncle Fed's Tax*Board

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Simplified Method Worksheet—Lines 17a and 17b 575 for the definition of guaranteed (keep for your records) payments. If you must use the Simplified Before you begin: If you are the beneficiary of a deceased employee or former Method, complete the worksheet on this employee who died before August 21, 1996, see Pub. 939 to find out if you are entitled page to figure the taxable part of your to a death benefit exclusion of up to $5,000. If you are, include the exclusion in the pension or annuity. For more details on amount entered on line 2 below. the Simplified Method, see Pub. 575. Note: If you had more than one partially taxable pension or annuity, figure the taxable Age (or Combined Ages) at part of each separately. Enter the total of the taxable parts on Form 1040NR, line 17b. Annuity Starting Date. If you are the Enter the total pension or annuity payments received in 2001 on Form 1040NR, retiree, use your age on the annuity line 17a. starting date. If you are the survivor of a retiree, use the retiree’s age on his or 1. Enter the total pension or annuity payments received in 2001. Also, her annuity starting date. But if your enter this amount on Form 1040NR, line 17a ................. 1. annuity starting date was after 1997 and the payments are for your life and 2. Enter your cost in the plan at the annuity starting that of your beneficiary, use your date ................................... 2. combined ages on the annuity starting 3. Enter the appropriate number from Table 1 below. date. But if your annuity starting date was after 1997 and If you are the beneficiary of an the payments are for your life and that of your employee who died, see Pub. 575. If beneficiary, enter the appropriate number from Table there is more than one beneficiary, see 2 below ................................. 3. Pub. 575 to figure each beneficiary’s 4. Divide line 2 by line 3 ....................... 4. taxable amount. Cost. Your cost is generally your net 5. Multiply line 4 by the number of months for which this investment in the plan as of the annuity year’s payments were made. If your annuity starting starting date. It does not include date was before 1987, skip lines 6 and 7 and enter pre-high tax contributions. Your net this amount on line 8. Otherwise, go to line 6 ...... 5. investment should be shown in box 9b 6. Enter the amount, if any, recovered tax free in years of Form 1099-R for the first year you after 1986 ............................... 6. received payments from the plan. 7. Subtract line 6 from line 2 .................... 7. Rollovers. A rollover is a tax-free 8. Enter the smaller of line 5 or line 7 ........................ 8. distribution of cash or other assets from one retirement plan that is contributed 9. Taxable amount. Subtract line 8 from line 1. Enter the result, but to another plan. Use lines 17a and 17b not less than zero. Also, enter this amount on Form 1040NR, line to report a rollover, including a direct 17b. If your Form 1099-R shows a larger amount, use the amount on rollover, from one qualified employer’s this line instead of the amount from Form 1099-R .............. 9. plan to another or to an IRA or SEP. Table 1 for Line 3 Above Enter on line 17a the total distribution before income tax or other deductions were withheld. This amount IF the age at AND your annuity starting date was— should be shown in box 1 of Form annuity starting 1099-R. From the total on line 17a, date (see this page) before November 19, 1996, after November 18, 1996, subtract any contributions (usually was . . . enter on line 3 . . . enter on line 3 . . . shown in box 5) that were taxable to 55 or under 300 360 you when made. From that result, subtract the amount that was rolled 56–60 260 310 over either directly or within 60 days of 61–65 240 260 receiving the distribution. Enter the remaining amount, even if zero, on line 66–70 170 210 17b. Write “Rollover” next to line 17b. 71 or older 120 160 Special rules apply to partial rollovers of property. For more details Table 2 for Line 3 Above on rollovers, including distributions IF the combined under qualified domestic relations ages at annuity orders, see Pub. 575. starting date (see Lump-Sum Distributions. If you this page) were . . . THEN enter on line 3 . . . received a lump-sum distribution from a 110 or under 410 profit-sharing or retirement plan, your Form 1099-R should have the “Total 111–120 360 distribution” box in box 2b checked. 121–130 310 You may owe an additional tax if you received an early distribution from a 131–140 260 qualified retirement plan and the total 141 or older 210 amount was not rolled over. For details, see the instructions for line 51 on page 18. 3. On your annuity starting date number of years of guaranteed Enter the total distribution on line either you were under age 75 or the payments was fewer than 5. See Pub. 17a and the taxable part on line 17b. -12- Instructions for Form 1040NR
You may be able to pay less tax Were You Covered by a However, a loan is not a qualified TIP on the distribution if you were Retirement Plan? If you were covered student loan if (a) any of the proceeds born before 1936, you meet by a retirement plan (qualified pension, were used for other purposes or (b) the certain other conditions, and you profit-sharing (including 401(k)), loan was from either a related person choose to use Form 4972 to figure the annuity, SEP, SIMPLE, etc.) at work or or a person who borrowed the tax on any part of the distribution. You through self-employment, your IRA proceeds under a qualified employer may also be able to use Form 4972 if deduction may be reduced or plan or a contract purchased under you are the beneficiary of a deceased eliminated. But you can still make such a plan. To find out who is a employee who was born before 1936. contributions to an IRA even if you related person, see Pub. 970. For details, see Form 4972. cannot deduct them. In any case, the Qualified higher education Line 20—Unemployment income earned on your IRA expenses generally include tuition, Compensation. You should receive a contributions is not taxed until it is paid fees, room and board, and related Form 1099-G showing the total to you. expenses such as books and supplies. unemployment compensation paid to The “Retirement plan” box in box 13 The expenses must be for education in you in 2001. of your W-2 form should be checked if a degree, certificate, or similar program you were covered by a plan at work at an eligible educational institution. An If you received an overpayment of even if you were not vested in the plan. eligible educational institution includes unemployment compensation in 2001 You are also covered by a plan if you most colleges, universities, and certain and you repaid any of it in 2001, were self-employed and had a SEP, vocational schools. You must reduce subtract the amount you repaid from SIMPLE, or qualified retirement plan. the expenses by the following the total amount you received. Enter Special Rule for Married nontaxable benefits. the result on line 20. Also, enter Individuals. If you checked filing status • Employer-provided educational “Repaid” and the amount you repaid on box 3, 4, or 5 and you were not covered assistance benefits that are not the dotted line next to line 20. If, in by a retirement plan but your spouse included in box 1 of your W-2 form(s). 2001, you repaid unemployment was, you are considered covered by a • Excludable U.S. series EE and I compensation that you included in plan unless you lived apart from your savings bond interest from Form 8815. gross income in an earlier year, you spouse for all of 2001. • Qualified distributions from a may deduct the amount repaid on Coverdell education savings account. Schedule A (Form 1040NR), line 11. See Pub. 590 for more details. • Any scholarship, educational But if you repaid more than $3,000, see Line 25—Student Loan Interest assistance allowance, or other payment Repayments in Pub. 525 for details on Deduction. Use the worksheet on (but not gifts, inheritances, etc.) how to report the repayment. page 14 to figure this deduction if all excluded from income. Line 21—Other Income. Use this line five of the following apply. For more details on these expenses, to report any other income effectively 1. You paid interest in 2001 on a see Pub. 970. connected with your U.S. business that qualified student loan (see below). An eligible student is a person who: is not reported elsewhere on your 2. At least part of the interest paid in • Was enrolled in a degree, certificate, return or other schedules. List the type 2001 was paid during the first 60 or other program (including a program and amount of income. If necessary, months that interest payments were of study abroad that was approved for show the required information on an required to be made. See Example credit by the institution at which the attached statement. For more details, below. student was enrolled) leading to a see Miscellaneous Taxable Income in 3. You checked filing status box 1, recognized educational credential at an Pub. 525. 2, or 6. eligible educational institution and 4. Your modified adjusted gross Report other income on page 4 of • Carried at least half the normal income (AGI) is less than $55,000. Use Form 1040NR if not effectively full-time work load for the course of lines 3 through 5 of the worksheet on connected with a U.S. trade or study he or she was pursuing. page 14 to figure your modified AGI. business. Line 26—Archer MSA Deduction. If 5. You are not claimed as a you made a contribution to an Archer Line 22. Use line 22 to report your total dependent on someone’s (such as your MSA for 2001, you may be able to take effectively connected income that is parent’s) 2001 tax return. this deduction. See Form 8853 for exempt from tax by a tax treaty. Do not Example. You took out a details. include this exempt income on line 23. Also, you must complete item M on qualified student loan in 1994 while in Line 27—Moving Expenses. page 5 of Form 1040NR. college. You had 6 years to repay the Employees and self-employed persons loan and your first monthly payment (including partners) can deduct certain was due July 1996, after you moving expenses. The move must be in graduated. You made a payment every connection with employment that Adjusted Gross Income month as required. If you meet items 3 generates effectively connected Line 24—IRA Deduction. through 5 listed above, you may use income. only the interest you paid for January If you moved in connection with your If you made any nondeductible through June 2001 to figure your job or business or started a new job, TIP contributions to a traditional deduction. June is the end of the you may be able to take this deduction. individual retirement 60-month period (July 1996–June But your new workplace must be at arrangement (IRA) for 2001, you must 2001). least 50 miles farther from your old report them on Form 8606. Qualified Student Loan. This is home than your old home was from If you made contributions to a any loan you took out to pay the your old workplace. If you had no traditional IRA for 2001, you may be qualified higher education expenses for former workplace, your new workplace able to take an IRA deduction. But you yourself, your spouse, or anyone who must be at least 50 miles from your old must have had earned income to do so. was your dependent when the loan was home. The deduction is generally You should receive a statement by May taken out. The person for whom the limited to moves to or within the United 31, 2002, that shows all contributions to expenses were paid must have been States or its possessions. If you meet your traditional IRA for 2001. an eligible student (see below). these requirements, see Pub. 521. Use Instructions for Form 1040NR -13-
Page 1 and 2: 2001 Instructions for Form 1040NR U
Page 3 and 4: • You were not engaged in a trade
Page 5 and 6: Special rules apply for exemptions
Page 7 and 8: Inflation-Adjusted Amounts for Expa
Page 9 and 10: • Is a U.S. citizen or resident a
Page 11: 2e of Forms 1099-DIV or substitute
Page 15 and 16: Deduction for Exemptions Worksheet
Page 17 and 18: Capital Gain Tax Worksheet—Line 3
Page 19 and 20: the country of which you are a resi
Page 21 and 22: 2001 must have been made on time
Page 23 and 24: Itemized Deductions Worksheet—Lin
Page 25 and 26: periodic income ordinarily subject
Page 27 and 28: 2001 Tax Table For persons with tax
Page 29 and 30: 2001 Tax Table—Continued Caution:
Page 39 and 40: 2001 Tax Rate Schedules These tax r

2001 Instructions for Form 1040NR - Uncle Fed's Tax*Board

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