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

Form 1040—Lines 41 and 43
Tax Table or Tax Computation Work- Schedule D Tax Worksheet. If you have to
Line 43
sheet. If your taxable income is less than file Schedule D and Schedule D, line 18 or
$100,000, you must use the Tax Table that 19, is more than zero, use the Schedule D
Tax begins on page 60 to figure your tax. Be Tax Worksheet on page D-9 of the Instrucsure
you use the correct column. If your tions for Schedule D to figure your tax.
Do you want the IRS to figure your tax for
you?
taxable income is $100,000 or more, use
Qualified Dividends and Capital Gain Tax
the Tax Computation Worksheet on
Yes. See Pub. 967 for details, in- Worksheet. If you do not have to use the
page 72.
cluding who is eligible and what to do. If
Schedule D Tax Worksheet (see above),
you have paid too much, we will send you a
However, do not use the Tax Table or use the worksheet on page 34 to figure your
refund. If you did not pay enough, we will
Tax Computation Worksheet to figure your tax if any of the following apply.
send you a bill.
tax if any of the following apply.
• You reported qualified dividends on
Form 8615. Form 8615 must generally be Form 1040, line 9b.
No. Use one of the following methused
to figure the tax for any child who was • You do not have to file Schedule D
ods to figure your tax. Also include in the
total on line 43 any of the following taxes.
under age 14 at the end of 2004, and who and you reported capital gain distributions
had more than $1,600 of investment in- on Form 1040, line 13.
1. Tax from Forms 8814 and 4972. Be come, such as taxable interest, ordinary • You are filing Schedule D and Schedsure
to check the appropriate box(es). dividends, or capital gains (including capiule
D, lines 15 and 16, are both more than
2. Tax from recapture of an education tal gain distributions). But if neither of the
zero.
credit. You may owe this tax if (a) you child’s parents was alive at the end of 2004,
claimed an education credit in an earlier do not use Form 8615 to figure the child’s Schedule J. If you had income from farm-
year, and (b) you, your spouse if filing tax. Also, a child born on January 1, 1991, ing or fishing, your tax may be less if you
jointly, or your dependent received in 2004 is considered to be age 14 at the end of choose to figure it using income averaging
either tax-free educational assistance or a 2004. Do not use Form 8615 for such a on Schedule J.
refund of qualified expenses. See Form child.
8863 for more details. If you owe this tax,
enter the amount and “ECR” on the dotted
line next to line 43.
Deduction for Exemptions Worksheet—Line 41
Keep for Your Records
1. Is the amount on Form 1040, line 37, more than the amount shown on line 4 below for your filing status?
No. STOP Multiply $3,100 by the total number of exemptions claimed on Form 1040, line 6d, and enter the
result on line 41.
Yes. Continue
2. Multiply $3,100 by the total number of exemptions claimed on Form 1040, line 6d .................. 2.
3. Enter the amount from Form 1040, line 37 ................................. 3.
4. Enter the amount shown below for your filing status.
• Single—$142,700
• Married filing jointly or qualifying widow(er)—$214,050
• Married filing separately—$107,025
• Head of household—$178,350
5. Subtract line 4 from line 3. If the result is more than $122,500 ($61,250 if married
}
.....
4.
filing separately), STOP You cannot take a deduction for exemptions ............... 5.
6. Divide line 5 by $2,500 ($1,250 if married filing separately). If the result is not a whole
number, increase it to the next higher whole number (for example, increase 0.0004 to 1) 6.
7. Multiply line 6 by 2% (.02) and enter the result as a decimal .................................. 7. .
8. Multiply line 2 by line 7 ........................................................... 8.
9. Deduction for exemptions. Subtract line 8 from line 2. Enter the result here and on Form 1040, line 41 . . . 9.
-33- Need more information or forms? See page 7.