2004 Instructions for Form 1040 (ALL) - Supreme Law Firm
2004 Instructions for Form 1040 (ALL) - Supreme Law Firm
2004 Instructions for Form 1040 (ALL) - Supreme Law Firm
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Be<strong>for</strong>e You Fill<br />
In <strong>Form</strong> <strong>1040</strong><br />
See How To Avoid Common Mistakes on page 57.<br />
If you were serving in, or in support of, the U.S. Armed Forces in a designated combat<br />
zone, qualified hazardous duty area, or contingency operation (<strong>for</strong> example, you were in the<br />
Afghanistan, Bosnia, Kosovo, or Persian Gulf area), see Pub. 3.<br />
For details on these and other your tax. The Tax Computation Worksheet your qualified higher education expenses.<br />
TIP changes <strong>for</strong> <strong>2004</strong> and 2005, see is on page 72. The Tax Rate Schedules are See Pub. 970.<br />
Pub. 553.<br />
shown on page 76 so you can see the tax<br />
rate that applies to all levels of taxable inamount<br />
you can defer under all plans is<br />
Elective salary deferrals. The maximum<br />
come, but they should not be used to figure<br />
your tax.<br />
generally limited to $13,000 ($16,000 <strong>for</strong><br />
section 403(b) plans if you qualify <strong>for</strong> the<br />
What’s New <strong>for</strong> <strong>2004</strong> IRA deduction allowed to more people 15-year rule). The catch-up contribution<br />
covered by retirement plans. You may be<br />
Health savings account (HSA) deduction. limit increased to $3,000 ($1,500 <strong>for</strong><br />
able to take an IRA deduction if you were<br />
You may be able to take a deduction if SIMPLE plans). See the instructions <strong>for</strong><br />
covered by a retirement plan and your modcontributions<br />
(other than employer contri-<br />
line 7 on page 19.<br />
ified AGI is less than $55,000 ($75,000 if<br />
butions) were made to your HSA <strong>for</strong> <strong>2004</strong>. married filing jointly or qualifying Excise tax on insider stock compensation<br />
See <strong>Form</strong> 8889 <strong>for</strong> details. widow(er)). See the instructions <strong>for</strong> line 25 from an expatriated corporation. You<br />
Tuition and fees deduction expanded. that begin on page 26.<br />
may owe a 15% excise tax on the value of<br />
You may be able to deduct up to $4,000 if<br />
Certain business expenses of reservists, nonstatutory stock options and certain<br />
your adjusted gross income (AGI) is not<br />
per<strong>for</strong>ming artists, and fee-basis other stock-based compensation held by<br />
more than $65,000 ($130,000 if married<br />
government officials. These expenses are you or a member of your family from an<br />
filing jointly), or deduct up to $2,000 if<br />
now reported on line 24. See the instrucyour<br />
AGI is higher than that limit but not<br />
expatriated corporation or its expanded af-<br />
tions <strong>for</strong> line 24 on page 26.<br />
filiated group in which you were an officer,<br />
more than $80,000 ($160,000 if married<br />
director, or more-than-10% owner. See the<br />
filing jointly). See the instructions <strong>for</strong> line Earned income credit (EIC). You may be instructions <strong>for</strong> line 62 on page 40.<br />
27 on page 29.<br />
able to take the EIC if:<br />
• A child lived with you and you earned Mailing your return. You may be mailing<br />
Sales tax deduction. You can elect to deyour<br />
return to a different address this year<br />
less than $34,458 ($35,458 if married filing<br />
duct state and local general sales taxes inbecause<br />
the IRS has changed the filing lojointly),<br />
or<br />
stead of state and local income taxes as an<br />
• A child did not live with you and you<br />
cation <strong>for</strong> several areas. If you received an<br />
itemized deduction on Schedule A. Generenvelope<br />
with your tax package, please use<br />
earned less than $11,490 ($12,490 if marally,<br />
you can use either your actual exit.<br />
Otherwise, see Where Do You File? on<br />
ried filing jointly).<br />
penses or the Optional State Sales Tax<br />
the back cover.<br />
Tables to figure your state and local general If you were a member of the U.S.<br />
sales tax deduction. See the <strong>Instructions</strong> <strong>for</strong> Armed Forces who served in a combat<br />
Schedule A <strong>for</strong> details.<br />
zone, you may be able to include your non-<br />
Income averaging <strong>for</strong> farmers and fisherfiguring<br />
taxable combat pay in earned income when What’s New <strong>for</strong> 2005<br />
the EIC.<br />
IRA deduction expanded. You, and your<br />
men. Fishermen can elect to use income<br />
averaging on Schedule J to reduce their tax.<br />
See the instructions <strong>for</strong> lines 65a and spouse if filing jointly, may be able to de-<br />
Also, the benefit of income averaging is<br />
65b that begin on page 41.<br />
duct up to $4,000 ($4,500 if age 50 or older<br />
extended to farmers and fishermen who<br />
at the end of 2005). If you were covered by<br />
owe the alternative minimum tax. See the Additional child tax credit expanded. The a retirement plan, you may be able to take<br />
<strong>Instructions</strong> <strong>for</strong> Schedule J <strong>for</strong> details. credit limit based on earned income is in- an IRA deduction if your 2005 modified<br />
creased to 15% of your earned income that<br />
Unlawful discrimination claims. You may<br />
AGI is less than $60,000 ($80,000 if marexceeds<br />
$10,750. If you were a member of<br />
be able to take a deduction on line 35 <strong>for</strong><br />
ried filing jointly or qualifying widow(er)).<br />
the U.S. Armed Forces who served in a<br />
attorney fees and court costs paid after Occombat<br />
zone, your nontaxable combat pay<br />
tober 22, <strong>2004</strong>, <strong>for</strong> actions settled or decounts<br />
as earned income when figuring this<br />
EIC phaseout amount increased <strong>for</strong> joint<br />
cided after that date involving a claim of<br />
filers. The maximum amount of earned<br />
credit limit. See <strong>Form</strong> 8812 <strong>for</strong> details.<br />
unlawful discrimination, a claim against<br />
income that joint filers can have and still<br />
the United States Government, or a claim Standard mileage rates. The <strong>2004</strong> rate <strong>for</strong> take the EIC will be $2,000 more than that<br />
made under section 1862(b)(3)(A) of the business use of your vehicle is 37 1 <strong>for</strong> other filers.<br />
⁄2 cents a<br />
Social Security Act, but only up to the mile. The <strong>2004</strong> rate <strong>for</strong> use of your vehicle<br />
Elective salary deferrals. The maximum<br />
amount included in gross income in <strong>2004</strong> to get medical care or to move is 14 cents a<br />
amount you can defer under all plans is<br />
from such claim. See Pub. 525 <strong>for</strong> details. mile.<br />
generally limited to $14,000 ($17,000 <strong>for</strong><br />
Tax Computation Worksheet. If your tax- Qualified tuition program (QTP) section 403(b) plans if you qualify <strong>for</strong> the<br />
able income is $100,000 or more, you will distributions. You may be able to exclude 15-year rule). The catch-up contribution<br />
now use the Tax Computation Worksheet from income distributions from a private limit is increased to $4,000 ($2,000 <strong>for</strong><br />
instead of the Tax Rate Schedules to figure QTP if the distributions are not more than SIMPLE plans).<br />
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