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