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

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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- ! 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-
Line 51—Child Tax Credit What Is the Child Tax Credit? This credit is for people who have a qualifying child (defined below). It is in addition to the credit for child and dependent care expenses on Form 1040, line 47, and the earned income credit on Form 1040, line 65a. Three Steps To Take the Child Tax Credit! Step 1. Make sure you have a qualifying child for the child tax credit (defined below). Step 2. Make sure you checked the box on Form 1040, line 6c, column (4), for each qualifying child. Step 3. Answer the questions on this page to see if you may use the worksheet on page 38 to figure your credit or if you must use Pub. 972, Child Tax Credit. If you need Pub. 972, see page 7. Questions Who Must Use Pub. 972 Form 1040—Line 51 1. Are you excluding income from Puerto Rico or are you filing any of the following forms? • Form 2555 or 2555-EZ (relating to foreign earned income). • Form 4563 (exclusion of income for residents of American Samoa). No. Continue Yes. STOP Pub. 972 You must use Pub. 972 to figure your credit. 2. Is the amount on Form 1040, line 37, more than the amount shown below for your filing status? • Married filing jointly – $110,000 • Single, head of household, or qualifying widow(er) – $75,000 • Married filing separately – $55,000 Qualifying Child for Child Tax Credit No. Continue Yes. A qualifying child for purposes of the child tax credit is a child who: STOP You must use Pub. 972 to figure your credit. 1. Is claimed as your dependent on line 6c, 2. Was under age 17 at the end of 2004, 3. Is your (a) son, daughter, adopted child, stepchild, or a descendant of any of them (for example, your grandchild); (b) • Adoption credit, Form 8839 (see the instructions for Form 3. Are you claiming any of the following credits? brother, sister, stepbrother, stepsister, or a descendant of any 1040, line 52, on page 39). of them (for example, your niece or nephew), whom you • Mortgage interest credit, Form 8396 (see the instructions cared for as you would your own child; or (c) foster child (any for Form 1040, line 53, on page 39). child placed with you by an authorized placement agency • District of Columbia first-time homebuyer credit, Form whom you cared for as you would your own child), and 8859. 4. Is a U.S. citizen or resident alien. No. Use the Yes. You must use The above requirements are not the same as the requireto figure your child child tax credit. You will worksheet on page 38 Pub. 972 to figure your ments to be a qualifying child for the earned income ! credit. tax credit. also need the form(s) listed CAUTION above for any credit(s) you are claiming. An adopted child is always treated as your own child. An adopted child includes a child placed with you by an authorized placement agency for legal adoption even if the adoption is not final. An authorized placement agency includes any person or court authorized by state law to place children for legal adoption. -37- Need more information or forms? See page 7.
Page 1 and 2: Note. This booklet does not contain
Page 3 and 4: What is IRS e-file? It’s the fast
Page 5 and 6: Tax Return Page Reference Questions
Page 7 and 8: Quick and Easy Access to Tax Help a
Page 9 and 10: Topic TeleTax Topics No. Subject No
Page 11 and 12: Before You Fill In Form 1040 See Ho
Page 13 and 14: Chart B—For Children and Other De
Page 15 and 16: Form Item and Box in Which it Shoul
Page 17 and 18: Line 2 December 31, 2004, you were
Page 19 and 20: Form 1040—Lines 7 and 8a less tha
Page 21 and 22: gross income was over $139,500 ($69
Page 23 and 24: Form 1040—Lines 16a and 16b Age (
Page 25 and 26: Form 1040—Lines 20a and 20b Socia
Page 27 and 28: Form 1040—Line 25 IRA Deduction W
Page 29 and 30: Form 1040—Lines 27 Through 29 for
Page 31 and 32: Line 35 Include in the total on lin
Page 33 and 34: Form 1040—Lines 41 and 43 Tax Tab
Page 35: Line 44 • Tax-exempt interest fro
Page 39 and 40: ured the credit. Check box c and en
Page 41 and 42: Lines 65a and 65b— Earned Income
Page 43 and 44: Form 1040—Lines 65a and 65b Conti
Page 45 and 46: Worksheet A—Earned Income Credit
Page 47 and 48: Form 1040—Lines 65a and 65b Works
Page 49 and 50: 2004 Earned Income Credit (EIC) Tab
Page 55 and 56: number is 20202086. Do not include
Page 57 and 58: You cannot sign your return are not
Page 59 and 60: site at www.aarp.org/taxaide or cal
Page 61 and 62: 2004 Tax Table—Continued If line
Page 71 and 72: If line 42 (taxable income) is— A
Page 73 and 74: Order Blank for Forms and Publicati
Page 75 and 76: Disclosure, Privacy Act, and Paperw
Page 77 and 78: Department of the Treasury Internal
Page 79 and 80: more than the general sales tax rat
Page 81 and 82: • You gave gifts of property that
Page 83 and 84: Instructions for Schedule B, after
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ing the tax year, and you did not m
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also include the amount collected i
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line 36. The amount you can deduct
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Principal Business or Professional
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Partnership Interests vestment. Thi
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If there is an amount in box 1c, se
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sale of your main home if you are n
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follow the applicable instructions
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Department of the Treasury Internal
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which you entered the combined tota
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If your rental real estate loss is
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gain results from redemption of the
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• Deducting the prepayment will n
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2001 Capital Gain Tax Worksheet—L
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2002 Tax Rate Schedules—Line 12 S
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2003 Tax Rate Schedules—Line 16 S
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homes, parking lots, warehouses, an
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Index to Instructions A Foreign Tax
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2004 Instructions for Form 1040 (ALL) - Supreme Law Firm

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