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

Form 1040—Lines 23 Through 25
• Performing-arts-related expenses as a shown in Form W-2, box 11. If it is not,
Adjusted Gross
qualified performing artist.
contact your employer for the amount of
• Business expenses of fee-basis state the distribution.
Income
or local government officials.
• You must file a joint return to deduct
For more details, see Form 2106 or contributions to your spouse’s IRA. Enter
2106-EZ.
the total IRA deduction for you and your
Line 23
spouse on line 25.
• Do not include qualified rollover con-
Educator Expenses
tributions in figuring your deduction. In-
If you were an eligible educator in 2004, Line 25
stead, see the instructions for lines 15a and
you can deduct up to $250 of qualified ex-
15b on page 22.
IRA Deduction
penses you paid in 2004. If you and your
• Do not include trustees’ fees that were
spouse are filing jointly and both of you
If you made any nondeductible billed separately and paid by you for your
were eligible educators, the maximum de- TIP contributions to a traditional in-
IRA. These fees can be deducted only as an
duction is $500. However, neither spouse dividual retirement arrange-
itemized deduction on Schedule A.
can deduct more than $250 of his or her
ment (IRA) for 2004, you must • If the total of your IRA deduction on
qualified expenses. An eligible educator is report them on Form 8606.
line 25 plus any nondeductible contribution
a kindergarten through grade 12 teacher, If you made contributions to a tradi- to your traditional IRAs shown on Form
instructor, counselor, principal, or aide in a tional IRA for 2004, you may be able to 8606 is less than your total traditional IRA
school for at least 900 hours during a take an IRA deduction. But you, or your contributions for 2004, see Pub. 590 for
school year. spouse if filing a joint return, must have special rules.
Qualified expenses include ordinary and had earned income to do so. For IRA purnecessary
expenses paid in connection with poses, earned income includes alimony and
By April 1 of the year after the
books, supplies, equipment (including separate maintenance payments reported TIP year in which you turn age 70 1 ⁄2,
computer equipment, software, and serv- on line 11. A statement should be sent to
you must start taking minimum
ices), and other materials used in the classyour
traditional IRA. If you do not, you
you by May 31, 2005, that shows all contri-
required distributions from
room. An ordinary expense is one that is butions to your traditional IRA for 2004.
common and accepted in your educational may have to pay a 50% additional tax on
Use the worksheet on page 27 to figure
field. A necessary expense is one that is the amount that should have been distrib-
the amount, if any, of your IRA deduction.
helpful and appropriate for your profession uted. For details, including how to figure
But read the following list before you fill in
as an educator. An expense does not have the minimum required distribution, see
the worksheet.
to be required to be considered necessary.
Pub. 590.
• If you were age 70 1 ⁄2 or older at the
Qualified expenses do not include ex- end of 2004, you cannot deduct any contri-
Were You Covered by a
penses for home schooling or for butions made to your traditional IRA for Retirement Plan?
nonathletic supplies for courses in health or 2004 or treat them as nondeductible contri- If you were covered by a retirement plan
physical education. You must reduce your butions. (qualified pension, profit-sharing (includqualified
expenses by the following • You cannot deduct contributions to a ing 401(k)), annuity, SEP, SIMPLE, etc.) at
amounts.
Roth IRA. But you may be able to take the work or through self-employment, your
• Excludable U.S. series EE and I sav- retirement savings contributions credit. See IRA deduction may be reduced or elimiings
bond interest from Form 8815. the instructions for line 50 on page 36. nated. But you can still make contributions
• Nontaxable qualified tuition program
to an IRA even if you cannot deduct them.
earnings.
If you made contributions to In any case, the income earned on your IRA
both a traditional IRA and a contributions is not taxed until it is paid to
• Nontaxable earnings from Coverdell !
Roth IRA for 2004, do not use
CAUTION
you.
education savings accounts.
the worksheet on page 27. In-
• Any reimbursements you received for
The “Retirement plan” box in Form
stead, see Pub. 590 to figure the amount, if
these expenses that were not reported to
W-2, box 13, should be checked if you
any, of your IRA deduction.
you in Form W-2, box 1.
were covered by a plan at work even if you
• You cannot deduct elective deferrals were not vested in the plan. You are also
For more details, use TeleTax topic 458 to a 401(k) plan, section 457 plan, SIMPLE covered by a plan if you were self-em-
(see page 8).
plan, or the federal Thrift Savings Plan. ployed and had a SEP, SIMPLE, or quali-
These amounts are not included as income fied retirement plan.
in Form W-2, box 1. But you may be able If you were covered by a retirement plan
Line 24
to take the retirement savings contributions and you file Form 2555, 2555-EZ, or 8815,
credit. See the instructions for line 50 on or you exclude employer-provided adoppage
36.
tion benefits, see Pub. 590 to figure the
Certain Business Expenses
of Reservists, Performing • If you made contributions to your IRA amount, if any, of your IRA deduction.
in 2004 that you deducted for 2003, do not
Artists, and Fee-Basis
Married persons filing separately. If you
include them in the worksheet.
were not covered by a retirement plan but
Government Officials • If you received a distribution from a your spouse was, you are considered cov-
Include the following deductions on nonqualified deferred compensation plan ered by a plan unless you lived apart from
line 24. or nongovernmental section 457 plan that is your spouse for all of 2004.
• Certain business expenses of National included in Form W-2, box 1, do not in-
Guard and reserve members who traveled clude that distribution on line 8 of the
more than 100 miles from home to perform worksheet. The distribution should be
services as a National Guard or reserve
member.
Need more information or forms? See page 7. -26-