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

Form 1040—Lines 16a Through 21
withheld. This amount should be shown in benefits paid to you. Box 4 will show the • Taxable distributions from a Cover-
Form 1099-R, box 1. From the total on line amount of any benefits you repaid in 2004. dell education savings account (ESA) or a
16a, subtract any contributions (usually If you received railroad retirement benefits qualified tuition program (QTP). Distribushown
in box 5) that were taxable to you treated as social security, you should re- tions from these accounts may be taxable if
when made. From that result, subtract the ceive a Form RRB-1099. (a) they are more than the qualified higher
amount of the qualified rollover. Enter the Use the worksheet on page 25 to see if education expenses of the designated beneremaining
amount, even if zero, on any of your benefits are taxable.
ficiary in 2004, and (b) they were not in-
line 16b. Also, enter ‘‘Rollover’’ next to
cluded in a qualified rollover. See
line 16b. Exception. Do not use the worksheet on
Pub. 970.
page 25 if any of the following apply.
Special rules apply to partial rollovers
• You made contributions to a tradiof
property. For more details on rollovers,
You may have to pay an additional
IRA for 2004 and you or your spouse
tional tax if you received a tax-
including distributions under qualified doable
distribution from a
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were covered by a retirement plan at work
mestic relations orders, see Pub. 575.
CAUTION
or through self-employment. Instead, use
Coverdell ESA or a QTP. See
Lump-Sum Distributions the worksheets in Pub. 590 to see if any of the Instructions for Form 5329.
If you received a lump-sum distribution your social security benefits are taxable and • Taxable distributions from a health
from a profit-sharing or retirement plan, to figure your IRA deduction.
savings account (HSA) or an Archer MSA.
your Form 1099-R should have the ‘‘Total • You repaid any benefits in 2004 and Distributions from these accounts may be
distribution’’ box in box 2b checked. You your total repayments (box 4) were more taxable if (a) they are more than the unmay
owe an additional tax if you received than your total benefits for 2004 (box 3). reimbursed qualified medical expenses of
an early distribution from a qualified retire- None of your benefits are taxable for 2004. the account beneficiary or account holder
ment plan and the total amount was not Also, you may be able to take an itemized in 2004, and (b) they were not included in a
rolled over in a qualified rollover. For de- deduction or a credit for part of the excess qualified rollover. See Pub. 969.
tails, see the instructions for line 59 on repayments if they were for benefits you
page 39.
included in gross income in an earlier year.
You may have to pay an addi-
Enter the total distribution on line 16a For more details, see Pub. 915.
tional tax if you received a tax-
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and the taxable part on line 16b. • You file Form 2555, 2555-EZ, 4563,
able distribution from an HSA
CAUTION
or 8815, or you exclude employer-provided
or an Archer MSA. See the In-
You may be able to pay less tax
adoption benefits or income from sources
structions for Form 8889 for HSAs or the
TIP on the distribution if you were
within Puerto Rico. Instead, use the work-
Instructions for Form 8853 for Archer
born before January 2, 1936, or
sheet in Pub. 915.
MSAs.
you are the beneficiary of a de-
• Prizes and awards.
ceased employee who was born before Jan-
• Gambling winnings, including lotteruary
2, 1936. For details, see Form 4972.
ies, raffles, a lump-sum payment from the
Line 21
sale of a right to receive future lottery payments,
etc. For details on gambling losses,
Other Income
Line 19
see the instructions for Schedule A, line 27,
Do not report on this line any on page A-6.
Unemployment
income from self-employment
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or fees received as a notary
Attach Form(s) W-2G to
Compensation
CAUTION
public. Instead, you must use TIP Form 1040 if any federal in-
You should receive a Form 1099-G show- Schedule C, C-EZ, or F, even if you do not
come tax was withheld.
ing the total unemployment compensation have any business expenses. Also, do not
paid to you in 2004.
report on line 21 any nonemployee comtions
for line 35 on page 31.
• Jury duty fees. Also, see the instruc-
If you received an overpayment of unstead,
see the chart on page 15 to find out • Alaska Permanent Fund dividends.
pensation shown on Form 1099-MISC. Inemployment
compensation in 2004 and
you repaid any of it in 2004, subtract the where to report that income.
• Reimbursements or other amounts reamount
you repaid from the total amount Use line 21 to report any income not ceived for items deducted in an earlier year,
you received. Enter the result on line 19. reported elsewhere on your return or other such as medical expenses, real estate taxes,
Also, enter “Repaid” and the amount you schedules. See the examples below. List the or home mortgage interest. See Recoveries
repaid on the dotted line next to line 19. If, type and amount of income. If necessary, in Pub. 525 for details on how to figure the
in 2004, you repaid unemployment com- show the required information on an at- amount to report.
pensation that you included in gross in- tached statement. For more details, see
come in an earlier year, you may deduct the
• Income from the rental of personal
Miscellaneous Income in Pub. 525.
amount repaid on Schedule A, line 22. But
property if you engaged in the rental for
if you repaid more than $3,000, see Repaying
such property. Also, see the instructions
Do not report any nontaxable profit but were not in the business of rentments
in Pub. 525 for details on how to
amounts on line 21, such as
TIP
report the repayment.
child support; money or prop-
for line 35 on page 31.
erty that was inherited, willed • Income from an activity not engaged
to you, or received as a gift; or life insurance
proceeds received because of a • Loss on certain corrective
in for profit. See Pub. 535.
distribu-
Lines 20a and 20b person’s death. tions of excess deferrals. See Retirement
Social Security Benefits
You should receive a Form SSA-1099
showing in box 3 the total social security
Examples of income to report on line 21
are:
Plan Contributions in Pub. 525.
Need more information or forms? See page 7. -24-