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 65a and 65b<br />
Continued from page 42<br />
3. Were you self-employed, or are you filing Schedule SE because<br />
you were a member of the clergy or you had church<br />
Step 5 Earned Income<br />
employee income, or are you filing Schedule C or C-EZ as a<br />
1. Are you filing Schedule SE because you were a member of statutory employee?<br />
the clergy or you had church employee income of $108.28 Yes. Skip question 4 No. Continue<br />
or more?<br />
and Step 6; go to<br />
<br />
Yes. See Clergy or No. Continue<br />
Worksheet B on<br />
Church employees,<br />
page 46.<br />
<br />
whichever applies, on<br />
this page. 4. If you have:<br />
• 2 or more qualifying children, is your earned income less<br />
2. Figure earned income:<br />
than $34,458 ($35,458 if married filing jointly)?<br />
• 1 qualifying child, is your earned income less than<br />
<strong>Form</strong> <strong>1040</strong>, line 7<br />
}<br />
$30,338 ($31,338 if married filing jointly)?<br />
Subtract, if included on line 7, any:<br />
• No qualifying children, is your earned income less than<br />
$11,490 ($12,490 if married filing jointly)?<br />
• Taxable scholarship or fellowship grant<br />
Yes. Go to Step 6. No. STOP<br />
not reported on a <strong>Form</strong> W-2.<br />
• Amount paid to an inmate in a penal<br />
You cannot take the credit.<br />
institution <strong>for</strong> work (put “PRI” and the<br />
amount subtracted on the dotted line next<br />
to <strong>Form</strong> <strong>1040</strong>, line 7).<br />
Step 6 How To Figure the Credit<br />
• Amount received as a pension or annuity<br />
1. Do you want the IRS to figure the credit <strong>for</strong> you?<br />
from a nonqualified deferred –<br />
compensation plan or a nongovernmental<br />
Yes. See Credit fig- No. Go to Worksheet A<br />
section 457 plan (put “DFC” and the<br />
ured by the IRS on on page 45.<br />
amount subtracted on the dotted line next<br />
page 44.<br />
to <strong>Form</strong> <strong>1040</strong>, line 7). This amount may<br />
be shown in <strong>Form</strong> W-2, box 11. If you<br />
Definitions and Special Rules<br />
received such an amount but box 11 is<br />
(listed in alphabetical order)<br />
blank, contact your employer <strong>for</strong> the<br />
Adopted child.<br />
amount received as a pension or annuity.<br />
An adopted child is always treated as your own<br />
child. An adopted child includes a child placed with you by an<br />
Add all of your nontaxable combat pay if<br />
authorized placement agency <strong>for</strong> legal adoption even if the adoption<br />
you elect to include it in earned<br />
is not final. An authorized placement agency includes any person or<br />
court authorized by state law to place children <strong>for</strong> legal adoption.<br />
income.* Also enter this amount on<br />
<strong>Form</strong> <strong>1040</strong>, line 65b. See Combat pay,<br />
Church employees. Determine how much of the amount on<br />
Nontaxable on this page. + <strong>Form</strong> <strong>1040</strong>, line 7, was also reported on Schedule SE, line 5a.<br />
Subtract that amount from the amount on <strong>Form</strong> <strong>1040</strong>, line 7, and<br />
enter the result in the first space of Step 5, line 2. Be sure to answer<br />
“Yes” to question 3 in Step 5.<br />
!<br />
CAUTION<br />
Electing to include nontaxable<br />
Clergy. The following instructions apply to ministers, members of<br />
combat pay may increase or decrease<br />
religious orders who have not taken a vow of poverty, and Christian<br />
Science practitioners. If you are filing Schedule SE and the amount<br />
your EIC. Figure the credit with and<br />
on line 2 of that schedule includes an amount that was also reported<br />
without your nontaxable combat pay on <strong>Form</strong> <strong>1040</strong>, line 7:<br />
be<strong>for</strong>e making the election.<br />
1. Put “Clergy” on the dotted line next to <strong>Form</strong> <strong>1040</strong>, line 65a.<br />
Earned Income =<br />
2. Determine how much of the amount on <strong>Form</strong> <strong>1040</strong>, line 7,<br />
was also reported on Schedule SE, line 2.<br />
* The election cannot be made on the return of a taxpayer 3. Subtract that amount from the amount on <strong>Form</strong> <strong>1040</strong>,<br />
whose tax year ended be<strong>for</strong>e October 5, <strong>2004</strong>, due to his<br />
line 7. Enter the result in the first space of Step 5, line 2.<br />
or her death.<br />
4. Be sure to answer “Yes” to question 3 in Step 5.<br />
Combat pay, Nontaxable. If you were a member of the U.S.<br />
Armed Forces who served in a combat zone, certain pay is excluded<br />
from your income. See Combat Zone Exclusion in Pub. 3. You can<br />
elect to include this pay in your earned income when figuring the<br />
EIC. The amount of your nontaxable combat pay should be shown<br />
in <strong>Form</strong>(s) W-2, box 14, with code Q.<br />
-43- Need more in<strong>for</strong>mation or <strong>for</strong>ms? See page 7.