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

ured the credit. Check box c and enter
Form 1040—Lines 52 Through 61
Exception. If only item 1 applies to you
Line 52 “FNS” on the line to the right of box c. and distribution code 1 is correctly shown
• Qualified zone academy bond credit. in Form 1099-R, box 7, you do not have to
Adoption Credit
This credit applies only to S corporation file Form 5329. Instead, multiply the tax-
You may be able to take this credit if either shareholders. See Form 8860.
able amount of the distribution by 10%
of the following applies.
(.10) and enter the result on line 59. The
• You paid expenses to adopt a child.
taxable amount of the distribution is the
• You adopted a child with special
part of the distribution you reported on
needs and the adoption became final in Other Taxes
Form 1040, line 15b or line 16b, or on
2004.
Form 4972. Also, put “No” under the head-
See the Instructions for Form 8839 for
ing “Other Taxes” to the left of line 59 to
details.
Line 58
indicate that you do not have to file Form
5329. But if distribution code 1 is incorrectly
shown in Form 1099-R, box 7, or
Social Security and
Medicare Tax on Tip Income you qualify for an exception for qualified
Line 53
medical expenses, qualified higher educa-
Not Reported to Employer
Include the following credits on line 53 and
tion expenses, or qualified first-time
check the appropriate box(es). To find out If you received tips of $20 or more in any homebuyer distributions, you must file
if you can take the credit, see the form month and you did not report the full Form 5329.
indicated.
amount to your employer, you must pay the
social security and Medicare or railroad re-
• Mortgage interest credit. If a state or
tirement (RRTA) tax on the unreported
local government gave you a mortgage
tips. You must also pay this tax if your Line 60
credit certificate, see Form 8396.
Form(s) W-2 shows allocated tips that you
• District of Columbia first-time
Advance Earned Income
are including in your income on Form
homebuyer credit. See Form 8859. 1040, line 7.
Credit Payments
Enter the total amount of advance earned
To figure the social security and Medi- income credit (EIC) payments you recare
tax, use Form 4137. If you owe RRTA ceived. These payments are shown in
Line 54
tax, contact your employer. Your employer Form(s) W-2, box 9.
Other Credits
Include the following credits on line 54 and
will figure and collect the RRTA tax.
check the appropriate box(es). If box c is
Line 61
You may be charged a penalty
equal to 50% of the social se-
!
curity and Medicare tax due on
CAUTION
tips you received but did not re-
port to your employer.
checked, also enter the form number, if ap-
plicable. To find out if you can take the
credit, see the form or publication indicated.
• Credit for prior year minimum tax. If
you paid alternative minimum tax in a prior
Household Employment
Taxes
If any of the following apply, see
Schedule H and its instructions to find out
year, see Form 8801. Line 59 if you owe these taxes.
• Qualified electric vehicle credit. If
Additional Tax on IRAs,
1. You paid any one household emyou
placed a new electric vehicle in service
ployee (defined below) cash wages of
in 2004, see Form 8834.
Other Qualified Retirement
$1,400 or more in 2004. Cash wages in-
• General business credit. This credit Plans, etc.
clude wages paid by check, money order,
consists of a number of credits that usually If any of the following apply, see
etc.
apply only to individuals who are partners, Form 5329 and its instructions to find out if 2. You withheld federal income tax durshareholders
in an S corporation, self-em- you owe this tax and if you must file
ployed, or who have rental property. See
ing 2004 at the request of any household
Form 5329.
Form 3800 or Pub. 334.
employee.
• Empowerment zone and renewal
1. You received an early distribution 3. You paid total cash wages of $1,000
community employment credit. See
from (a) an IRA or other qualified retire- or more in any calendar quarter of 2003 or
Form 8844.
ment plan, (b) an annuity, or (c) a modified 2004 to household employees.
endowment contract entered into after June
• New York Liberty Zone business em-
20, 1988, and the total distribution was not
ployee credit. See Form 8884.
rolled over in a qualified rollover contribu-
For item (1), do not count
• Nonconventional source fuel credit. If tion. amounts paid to an employee
you sold fuel produced from a nonconven-
TIP
2. Excess contributions were made to
who was under age 18 at any
tional source, or you were an owner of royyour
IRAs, Coverdell education savings acalty
interests and you received income from
time in 2004 and was a student.
counts (ESAs), Archer MSAs, or health
the sale of fuel produced from a nonconsavings
accounts.
ventional source, you may be able to take
Household employee. Any person who
this credit. See Internal Revenue Code secfrom
Coverdell ESAs or qualified tuition ployee if you can control what will be done
3. You received taxable distributions does household work is a household em-
tion 29 and, if an owner of royalty interests,
Rev. Proc. 2004-27, 2004-17 I.R.B. 831. programs.
and how it will be done. Household work
You can find Rev. Proc. 2004-27 on page 4. You were born before July 1, 1933, includes work done in or around your home
831 of Internal Revenue Bulletin 2004-17 and did not take the minimum required dis- by babysitters, nannies, health aides,
at www.irs.gov/pub/irs-irbs/irb04-17.pdf. tribution from your IRA or other qualified maids, yard workers, and similar domestic
Attach a schedule showing how you fig- retirement plan.
workers.
-39- Need more information or forms? See page 7.