2004 Instructions for Form 1040 (ALL) - Supreme Law Firm

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Form 1040—Lines 6b and 6c Support test. You must have provided thorized placement agency whom you Exemptions over half of the person’s total support in cared for as you would your own child), 2004. But there are two exceptions to this and You usually can deduct $3,100 on line 41 test: One for children of divorced or sepa- 4. Is a U.S. citizen or resident alien. for each exemption you can take. rated parents and one for persons supported by two or more taxpayers. The above requirements are not For more details about the tests, the same as the requirements to Line 6b ! including any exceptions that be a qualifying child for the TIP CAUTION apply, see Pub. 501. earned income credit. Spouse An adopted child is always treated as Check the box on line 6b if either of the Line 6c, Column (2) your own child. An adopted child includes following apply. a child placed with you by an authorized 1. Your filing status is married filing You must enter each dependent’s social se- placement agency for legal adoption even if jointly. curity number (SSN). Be sure the name and the adoption is not final. An authorized SSN entered agree with the dependent’s 2. You were married as of December 31, placement agency includes any person or social security card. Otherwise, at the time 2004, your filing status is married filing court authorized by state law to place chilwe process your return, we may disallow separately or head of household, and both dren for legal adoption. the exemption claimed for the dependent of the following apply. and reduce or disallow any other tax bene- Children Who Did Not Live With a. Your spouse had no income and is not fits (such as the child tax credit) based on You Due to Divorce or Separation filing a return. that dependent. If the name or SSN on the If you are claiming a child who did not live b. Your spouse cannot be claimed as a dependent’s social security card is not cor- with you under the rules explained in dependent on another person’s return. rect, call the Social Security Administra- Pub. 501 for children of divorced or sepa- tion at 1-800-772-1213. rated parents, attach Form 8332 or similar If your filing status is head of household For details on how your depention below. statement to your return. But see the Excepand you check the box on line 6b, enter the dent can get an SSN, see page name of your spouse on the dotted line next TIP 16. If your dependent will not If your divorce decree or separation to line 6b. Also, enter your spouse’s social have a number by April 15, agreement went into effect after 1984, you security number in the space provided at 2005, see What If You Cannot File on can attach certain pages from the decree or the top of your return. Time? on page 12. agreement instead of Form 8332. To be If your dependent child was born and able to do this, the decree or agreement died in 2004 and you do not have an SSN must state all three of the following. Line 6c for the child, you can attach a copy of the 1. You can claim the child as your dechild’s birth certificate instead and enter pendent without regard to any condition Dependents “Died” in column (2). (such as payment of support). You can take an exemption for each of your Adoption taxpayer identification numbers 2. The other parent will not claim the dependents. The following is a brief (ATINs). If you have a dependent who was child as a dependent. description of the five tests that must be met for a person to qualify as your depenment agency and you do not know his or leased. placed with you by an authorized place- 3. The years for which the claim is re- dent. If you have more than four depenher SSN, you must get an ATIN for the dents, attach a statement to your return with Attach all of the following pages from the required information. dependent from the IRS. An authorized the decree or agreement. placement agency includes any person au- Relationship test. The person must be ei- thorized by state law to place children for • Cover page (include the other parent’s ther your relative or have lived in your legal adoption. See Form W-7A for details. SSN on that page). home all year as a member of your house- • The pages that include all of the inforhold. If the person is not your relative, the Line 6c, Column (4) mation identified in (1) through (3) above. relationship must not violate local law. Check the box in this column if your depen- • Signature page with the other parent’s dent is a qualifying child for the child tax Joint return test. If the person is married, signature and date of agreement. credit (defined below). If you have a qualihe or she cannot file a joint return. But the fying child, you may be able to take the You must attach the required person can file a joint return if the return is child tax credit on line 51 and the additional information even if you filed it filed only as a claim for refund and no tax child tax credit on line 67. ! with your return in an earlier liability would exist for either spouse if CAUTION year. they had filed separate returns. Qualifying child for child tax credit. A qualifying child for purposes of the child Citizen or resident test. The person must Exception. You do not have to attach Form be a U.S. citizen or resident alien, or a tax credit is a child who: 8332 or similar statement if your divorce resident of Canada or Mexico. There is an 1. Is claimed as your dependent on line decree or written separation agreement exception for certain adopted children. To 6c, went into effect before 1985 and it states find out who is a resident alien, use that you can claim the child as your depen- 2. Was under age 17 at the end of 2004, TeleTax topic 851 (see page 8) or see dent. 3. Is your (a) son, daughter, adopted Pub. 519. child, stepchild, or a descendant of any of Other Dependent Children Income test. The person’s gross income them (for example, your grandchild); (b) Include the total number of children who must be less than $3,100. But your child’s brother, sister, stepbrother, stepsister, or a did not live with you for reasons other than gross income can be $3,100 or more if he or descendant of any of them (for example, divorce or separation on the line labeled she was either (a) under age 19 at the end of your niece or nephew), whom you cared for ‘‘Dependents on 6c not entered above.’’ 2004, or (b) under age 24 at the end of 2004 as you would your own child; or (c) foster Include dependent children who lived in and a student. child (any child placed with you by an au- Canada or Mexico during 2004. Need more information or forms? See page 7. -18-
Form 1040—Lines 7 and 8a less than $1,400 in 2004. Also, enter • Disability pensions shown on Form Income ‘‘HSH’’ and the amount not reported on 1099-R if you have not reached the mini- Form W-2 on the dotted line next to line 7. mum retirement age set by your employer. Foreign-Source Income • Tip income you did not report to your Disability pensions received after you You must report unearned income, such as employer. Also include allocated tips reach that age and other payments shown interest, dividends, and pensions, from shown on your Form(s) W-2 unless you can on Form 1099-R (other than payments from sources outside the United States unless exshould be shown in Form(s) W-2, box 8. Payments from an IRA are reported on prove that you received less. Allocated tips an IRA*) are reported on lines 16a and 16b. empt by law or a tax treaty. You must also report earned income, such as wages and They are not included as income in box 1. lines 15a and 15b. tips, from sources outside the United See Pub. 531 for more details. • Corrective distributions from a retire- States. ment plan shown on Form 1099-R of ex- You may owe social security cess salary deferrals, and excess If you worked abroad, you may be able and Medicare tax on unreported contributions (plus earnings). But do not to exclude part or all of your earned in- ! or allocated tips. See the ininclude distributions from an IRA* on line CAUTION come. For details, see Pub. 54 and Form structions for line 58 on 2555 or 2555-EZ. 7. Instead, report distributions from an IRA page 39. on lines 15a and 15b. Foreign retirement plans. If you were a • Dependent care benefits, which *This includes a Roth, SEP, or SIMPLE IRA. beneficiary of a foreign retirement plan, should be shown in Form(s) W-2, box 10. you may have to report the undistributed But first complete Form 2441 to see if you Were You a Statutory Employee? income earned in your plan. However, if may exclude part or all of the benefits. you were the beneficiary of a Canadian reg- If you were, the “Statutory employee” box istered retirement plan, see Form 8891 to • Employer-provided adoption benefits, in Form W-2, box 13, should be checked. find out if you can elect to defer tax on the which should be shown in Form(s) W-2, Statutory employees include full-time life undistributed income. box 12, with code T. But see the Instruc- insurance salespeople, certain agent or tions for Form 8839 to find out if you can commission drivers and traveling salespeexclude part or all of the benefits. You may ople, and certain homeworkers. If you have Report distributions from foreign pension plans on lines 16a and 16b. also be able to exclude amounts if you related business expenses to deduct, report adopted a child with special needs and the the amount shown in Form W-2, box 1, on Community Property States adoption became final in 2004. Schedule C or C-EZ along with your ex- Community property states are Arizona, • Scholarship and fellowship grants not penses. California, Idaho, Louisiana, Nevada, New reported on Form W-2. Also, enter “SCH” Mexico, Texas, Washington, and Wisconline 7. However, if you were a degree can- and the amount on the dotted line next to Missing or Incorrect Form W-2? sin. If you and your spouse lived in a comdidate, include on line 7 only the amounts Your employer is required to provide or munity property state, you must usually you used for expenses other than tuition send Form W-2 to you no later than follow state law to determine what is comand course-related expenses. For example, January 31, 2005. If you do not receive it munity income and what is separate inamounts used for room, board, and travel by early February, use TeleTax topic 154 come. For details, see Pub. 555. must be reported on line 7. (see page 8) to find out what to do. Even if you do not get a Form W-2, you must still Rounding Off to Whole • Excess salary deferrals. The amount report your earnings on line 7. If you lose deferred should be shown in Form W-2, Dollars your Form W-2 or it is incorrect, ask your box 12, and the “Retirement plan” box in employer for a new one. You may round off cents to whole dollars box 13 should be checked. If the total on your return and schedules. If you do amount you (or your spouse if filing round to whole dollars, you must round all jointly) deferred for 2004 under all plans amounts. To round, drop amounts under 50 was more than $13,000 (excluding Line 8a cents and increase amounts from 50 to 99 catch-up contributions as explained becents to the next dollar. For example, $1.39 low), include the excess on line 7. This Taxable Interest becomes $1 and $2.50 becomes $3. limit is increased to $16,000 for section Each payer should send you a Form 403(b) plans if you qualify for the 15-year If you have to add two or more amounts 1099-INT or Form 1099-OID. Enter your rule in Pub. 571. to figure the amount to enter on a line, total taxable interest income on line 8a. But include cents when adding the amounts and A higher limit may apply to participants you must fill in and attach Schedule B if the round off only the total. in section 457(b) deferred compensation total is over $1,500 or any of the other plans for the 3 years before retirement age. conditions listed at the beginning of the Contact your plan administrator for more Schedule B instructions (see page B-1) apinformation. ply to you. Line 7 Wages, Salaries, Tips, etc. If you were age 50 or older at the end of 2004, your employer may have allowed an Enter the total of your wages, salaries, tips, additional deferral (catch-up contributions) etc. If a joint return, also include your of up to $3,000 ($1,500 for SIMPLE plans). spouse’s income. For most people, the This additional deferral amount is not subamount to enter on this line should be ject to the overall limit on elective defershown in Form(s) W-2, box 1. But the fol- rals. lowing types of income must also be included in the total on line 7. You cannot deduct the amount • Wages received as a household em- deferred. It is not included as ployee for which you did not receive a ! income in Form W-2, box 1. CAUTION Form W-2 because your employer paid you Interest credited in 2004 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 2004 income. For details, see Pub. 550. If you get a 2004 Form TIP 1099-INT for U.S. savings bond interest that includes amounts you reported before 2004, see Pub. 550. -19- Need more information or forms? See page 7.
Page 1 and 2: Note. This booklet does not contain
Page 3 and 4: What is IRS e-file? It’s the fast
Page 5 and 6: Tax Return Page Reference Questions
Page 7 and 8: Quick and Easy Access to Tax Help a
Page 9 and 10: Topic TeleTax Topics No. Subject No
Page 11 and 12: Before You Fill In Form 1040 See Ho
Page 13 and 14: Chart B—For Children and Other De
Page 15 and 16: Form Item and Box in Which it Shoul
Page 17: Line 2 December 31, 2004, you were
Page 21 and 22: gross income was over $139,500 ($69
Page 23 and 24: Form 1040—Lines 16a and 16b Age (
Page 25 and 26: Form 1040—Lines 20a and 20b Socia
Page 27 and 28: Form 1040—Line 25 IRA Deduction W
Page 29 and 30: Form 1040—Lines 27 Through 29 for
Page 31 and 32: Line 35 Include in the total on lin
Page 33 and 34: Form 1040—Lines 41 and 43 Tax Tab
Page 35 and 36: Line 44 • Tax-exempt interest fro
Page 37 and 38: Line 51—Child Tax Credit What Is
Page 39 and 40: ured the credit. Check box c and en
Page 41 and 42: Lines 65a and 65b— Earned Income
Page 43 and 44: Form 1040—Lines 65a and 65b Conti
Page 45 and 46: Worksheet A—Earned Income Credit
Page 47 and 48: Form 1040—Lines 65a and 65b Works
Page 49 and 50: 2004 Earned Income Credit (EIC) Tab
Page 55 and 56: number is 20202086. Do not include
Page 57 and 58: You cannot sign your return are not
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Page 61 and 62: 2004 Tax Table—Continued If line
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2004 Tax Table—Continued If line
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If line 42 (taxable income) is— A
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Order Blank for Forms and Publicati
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Disclosure, Privacy Act, and Paperw
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Department of the Treasury Internal
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more than the general sales tax rat
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• You gave gifts of property that
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Instructions for Schedule B, after
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ing the tax year, and you did not m
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also include the amount collected i
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line 36. The amount you can deduct
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Principal Business or Professional
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Partnership Interests vestment. Thi
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If there is an amount in box 1c, se
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sale of your main home if you are n
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follow the applicable instructions
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which you entered the combined tota
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If your rental real estate loss is
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gain results from redemption of the
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• Deducting the prepayment will n
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2001 Capital Gain Tax Worksheet—L
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2002 Tax Rate Schedules—Line 12 S
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2003 Tax Rate Schedules—Line 16 S
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homes, parking lots, warehouses, an
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Index to Instructions A Foreign Tax
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2004 Instructions for Form 1040 (ALL) - Supreme Law Firm

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