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

Form 1040—Lines 44 Through 50
Form 6251 should be filled in
• The amount on Form 1040, line 37, is
for a child who was under age Line 47
$52,000 or more ($105,000 or more if mar-
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14 at the end of 2004 if the ried filing jointly).
CAUTION
child’s adjusted gross income Credit for Child and
• You are taking a deduction for tuition
from Form 1040, line 37, exceeds the Dependent Care Expenses and fees on Form 1040, line 27, for the
child’s earned income by more than You may be able to take this credit if you same student.
$5,750. paid someone to care for your child under • You (or your spouse) were a nonresiage
13 or your dependent or spouse who dent alien for any part of 2004 unless your
could not care for himself or herself. For filing status is married filing jointly.
Line 46
details, use TeleTax topic 602 (see page 8)
or see Form 2441.
Foreign Tax Credit
If you paid income tax to a foreign country,
you may be able to take this credit. Generally,
you must complete and attach Form
1116 to do so.
Line 48
Credit for the Elderly or the
Disabled
Line 50
Retirement Savings
Contributions Credit
You may be able to take this credit if you,
Exception. You do not have to complete
or your spouse if filing jointly, made (a)
Form 1116 to take this credit if all five of You may be able to take this credit if by the contributions to a traditional or Roth IRA;
the following apply. end of 2004 (a) you were age 65 or older, or (b) elective deferrals to a 401(k), 403(b),
1. All of your gross foreign source in-
(b) you retired on permanent and total disa- governmental 457, SEP, or SIMPLE plan;
come was from interest and dividends and bility and you had taxable disability in- (c) voluntary employee contributions to a
all of that income and the foreign tax paid come. But you usually cannot take the qualified retirement plan (including the
on it were reported to you on Form credit if the amount on Form 1040, line 37, federal Thrift Savings Plan); or (d) contri-
1099-INT, Form 1099-DIV, or Schedule is $17,500 or more ($20,000 or more if butions to a 501(c)(18)(D) plan.
K-1 (or substitute statement). married filing jointly and only one spouse
However, you cannot take the credit if
is eligible for the credit; $25,000 or more if
2. If you had dividend income from
either of the following applies.
married filing jointly and both spouses are
shares of stock, you held those shares for at
eligible; $12,500 or more if married filing 1. The amount on Form 1040, line 37, is
least 16 days.
separately). See Schedule R and its instruc- more than $25,000 ($37,500 if head of
3. You are not filing Form 4563 or ex- tions for details.
household; $50,000 if married filing
cluding income from sources within Puerto
Credit figured by the IRS. If you can take
jointly).
Rico.
this credit and you want us to figure it for 2. The person(s) who made the qualified
4. The total of your foreign taxes was
you, see the Instructions for Schedule R. contribution or elective deferral (a) was
not more than $300 (not more than $600 if
born after January 1, 1987, (b) is claimed as
married filing jointly).
a dependent on someone else’s 2004 tax
5. All of your foreign taxes were:
return, or (c) was a student (defined below).
Line 49
a. Legally owed and not eligible for a You were a student if during any 5
refund, and Education Credits months of 2004 you:
b. Paid to countries that are recognized If you (or your dependent) paid qualified • Were enrolled as a full-time student at
by the United States and do not support expenses in 2004 for yourself, your spouse, a school, or
terrorism. or your dependent to enroll in or attend an • Took a full-time, on-farm training
eligible educational institution, you may be
For more details on these requirements,
course given by a school or a state, county,
able to take an education credit. See Form
see the Instructions for Form 1116.
or local government agency.
8863 for details. However, you cannot take
Do you meet all five requirements an education credit if any of the following
A school includes a technical, trade, or
above?
apply.
mechanical school. It does not include an
on-the-job training course, correspondence
Yes. Enter on line 46 the smaller of • You are claimed as a dependent on school, or night school.
(a) your total foreign taxes, or (b) the someone’s (such as your parent’s) 2004 tax
amount on Form 1040, line 43.
return.
For more details, use TeleTax topic 610
(see page 8) or see Form 8880.
No. See Form 1116 to find out if • Your filing status is married filing
you can take the credit and, if you can, if separately.
you have to file Form 1116.
Need more information or forms? See page 7. -36-