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

More documents

Recommendations

Info

Form 1040—Lines 8b Through 10 purchaser of a stock is not entitled to re- Your Form 1099-DIV from ABC Mutual Line 8b ceive the next dividend payment. When Fund shows total ordinary dividends of counting the number of days you held the $1,000 and qualified dividends of $200. Tax-Exempt Interest stock, include the day you disposed of the However, you sold the 10,000 shares on Line 9a Ordinary Dividends Each payer should send you a Form 1099-DIV. Enter your total ordinary divi- If you received any tax-exempt interest, such as from municipal bonds, report it on line 8b. Include any exempt-interest dividends from a mutual fund or other regu- lated investment company. Do not include interest earned on your IRA or Coverdell education savings account. stock but not the day you acquired it. See the examples below. 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. dends on line 9a. This amount should be Preferred dividends attributable to periods Line 10 August 4, 2004. 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 TIP 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 43 that begin on page 33 for details. shown in Form(s) 1099-DIV, box 1a. But totaling less than 367 days are subject to the you must fill in and attach Schedule B if the 61-day holding period rule above. Taxable Refunds, Credits, or total is over $1,500 or you received, as a nominee, ordinary dividends that actually • Dividends on any share of stock to the Offsets of State and Local belong to someone else. extent that you are under an obligation (in- Income Taxes cluding a short sale) to make related pay- Nondividend Distributions ments with respect to positions in None of your refund is taxable substantially similar or related property. if, in the year you paid the tax, Some distributions are a return of your cost TIP • Payments in lieu of dividends, but you did not itemize deductions. (or other basis). They will not be taxed until you recover your cost (or other basis). You only if you know or have reason to know must reduce your cost (or other basis) by that the payments are not qualified divi- If you received a refund, credit, or offset these distributions. After you get back all of dends. of state or local income taxes in 2004, you your cost (or other basis), you must report Example 1. You bought 5,000 shares of may receive a Form 1099-G. If you chose these distributions as capital gains on XYZ Corp. common stock on July 1, 2004. to apply part or all of the refund to your Schedule D. For details, see Pub. 550. XYZ Corp. paid a cash dividend of 10 cents 2004 estimated state or local income tax, per share. The ex-dividend date was July 9, the amount applied is treated as received in Dividends on insurance policies 2004. Your Form 1099-DIV from XYZ 2004. If the refund was for a tax you paid in TIP are a partial return of the premi- Corp. shows $500 in box 1a (ordinary divi- 2003 and you itemized deductions for ums you paid. Do not report dends) and in box 1b (qualified dividends). 2003, use the worksheet on page 21 to see them as dividends. Include However, you sold the 5,000 shares on Authem in income only if they exceed the total gust 4, 2004. You held your shares of XYZ if any of your refund is taxable. of all net premiums you paid for the con- Exception. See Recoveries in Pub. 525 in- Corp. for only 34 days of the 121-day petract. stead of using the worksheet on page 21 if riod (from July 2, 2004, through August 4, any of the following apply. 2004). The 121-day period began on May 10, 2004 (60 days before the ex-dividend • You received a refund in 2004 that is date), and ended on September 7, 2004. for a tax year other than 2003. Line 9b You have no qualified dividends from XYZ • You received a refund other than an Qualified Dividends Corp. because you held the XYZ stock for income tax refund, such as a real property less than 61 days. tax refund, in 2004 of an amount deducted Enter your total qualified dividends on or credit claimed in an earlier year. line 9b. Qualified dividends are eligible for Example 2. Assume the same facts as in Example 1 except that you bought the stock • Your 2003 taxable income was less a lower tax rate than other ordinary income. on July 8, 2004 (the day before the ex-divi- than zero. Generally, these dividends are shown in Form(s) 1099-DIV, box 1b. See Pub. 550 dend date), and you sold the stock on Sep- • You made your last payment of 2003 for the definition of qualified dividends if tember 9, 2004. You held the stock for 63 estimated state or local income tax in 2004. you received dividends not reported on days (from July 9, 2004, through Septem- • You owed alternative minimum tax in Form 1099-DIV. ber 9, 2004). The $500 of qualified divi- 2003. dends shown in Form 1099-DIV, box 1b, • You could not deduct the full amount Exception. Some dividends may be re- are all qualified dividends because you held of credits you were entitled to in 2003 beported as qualified dividends in box 1b of the stock for 61 days of the 121-day period cause the total credits exceeded the amount Form 1099-DIV but are not qualified divi- (from July 9, 2004, through September 7, shown on your 2003 Form 1040, line 43. dends. These include: 2004). • You could be claimed as a dependent • Dividends you received as a nominee. Example 3. You bought 10,000 shares by someone else in 2003. See the Instructions for Schedule B. of ABC Mutual Fund common stock on • Dividends you received on any share July 1, 2004. ABC Mutual Fund paid a cash Also, see Tax benefit rule in Pub. 525 of stock that you held for less than 61 days dividend of 10 cents a share. The ex-diviall of the following apply. instead of using the worksheet on page 21 if during the 121-day period that began 60 dend date was July 9, 2004. The ABC Mudays before the ex-dividend date. The tual Fund advises you that the portion of • You had to use the Itemized Deducex-dividend date is the first date following the dividend eligible to be treated as quali- tions Worksheet in the 2003 Schedule A the declaration of a dividend on which the fied dividends equals 2 cents per share. instructions because your 2003 adjusted Need more information or forms? See page 7. -20-
gross income was over $139,500 ($69,750 if married filing separately). • You could not deduct all of the amount on the 2003 Itemized Deductions Worksheet, line 1. • The amount on line 8 of that 2003 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 2004. Line 11 Alimony Received Line 12 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. Line 13 Capital Gain or (Loss) 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, use TeleTax topic 406 (see page 8) or see Pub. 504. If you had a capital gain or loss, including any capital gain distributions or a capital loss carryover from 2003, you must complete and attach Schedule D. Exception. You do not have to file Sched- ule 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), Form 1040—Lines 10 Through 13 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 Instructions for Schedule B for filing requirements for Forms 1099-DIV and 1096. If you do not have to file Sched- TIP ule D, be sure you use the Qual- ified Dividends and Capital Gain Tax Worksheet on page 34 to figure your tax. Your tax may be less if you use this worksheet. State and Local Income Tax Refund Worksheet—Line 10 Keep for Your Records 1. Enter the income tax refund from Form(s) 1099-G (or similar statement). But do not enter more than the amount on your 2003 Schedule A (Form 1040), line 5 ................................. 1. 2. Enter your total allowable itemized deductions from your 2003 Schedule A (Form 1040), line 28 .................................................... 2. Note. If the filing status on your 2003 Form 1040 was married filing separately and your spouse itemized deductions in 2003, skip lines 3, 4, and 5, and enter the amount from line 2 on line 6. 3. Enter the amount shown below for the filing status claimed on your 2003 Form 1040. • Single or married filing separately— $4,750 } • Married filing jointly or qualifying widow(er)— $9,500 . . 3. • Head of household— $7,000 4. Did you fill in line 36a on your 2003 Form 1040? No. Enter -0-. } Yes. Multiply the number in the box on line 36a of your 2003 Form 1040 by: $950 if your 2003 filing status was married filing jointly or separately or qualifying 4. widow(er); $1,150 if your 2003 filing status was single or head of household. 5. Add lines 3 and 4 ................................................. 5. 6. Is the amount on line 5 less than the amount on line 2? No. None of your refund is taxable. STOP Yes. Subtract line 5 from line 2 ................................................. 6. 7. Taxable part of your refund. Enter the smaller of line 1 or line 6 here and on Form 1040, line 10 7. -21- 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 and 18: Line 2 December 31, 2004, you were
Page 19: Form 1040—Lines 7 and 8a less tha
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
Page 59 and 60: site at www.aarp.org/taxaide or cal
Page 61 and 62: 2004 Tax Table—Continued If line
Page 71 and 72:
If line 42 (taxable income) is— A
Page 73 and 74:
Order Blank for Forms and Publicati
Page 75 and 76:
Disclosure, Privacy Act, and Paperw
Page 77 and 78:
Department of the Treasury Internal
Page 79 and 80:
more than the general sales tax rat
Page 81 and 82:
• You gave gifts of property that
Page 83 and 84:
Instructions for Schedule B, after
Page 85 and 86:
Page 87 and 88:
ing the tax year, and you did not m
Page 89 and 90:
also include the amount collected i
Page 91 and 92:
line 36. The amount you can deduct
Page 93 and 94:
Principal Business or Professional
Page 95 and 96:
Partnership Interests vestment. Thi
Page 97 and 98:
If there is an amount in box 1c, se
Page 99 and 100:
sale of your main home if you are n
Page 101 and 102:
follow the applicable instructions
Page 103 and 104:
Page 105 and 106:
which you entered the combined tota
Page 107 and 108:
If your rental real estate loss is
Page 109 and 110:
Page 111 and 112:
gain results from redemption of the
Page 113 and 114:
• Deducting the prepayment will n
Page 115 and 116:
Page 117 and 118:
2001 Capital Gain Tax Worksheet—L
Page 119 and 120:
2002 Tax Rate Schedules—Line 12 S
Page 121 and 122:
2003 Tax Rate Schedules—Line 16 S
Page 123 and 124:
Page 125 and 126:
homes, parking lots, warehouses, an
Page 127 and 128:
Index to Instructions A Foreign Tax
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?