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

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Form 1040—Lines 65a and 65b Credit figured by the IRS. To have the IRS figure the credit for mental condition and a doctor has determined that this condition (a) you: has lasted or can be expected to last continuously for at least a year, 1. Put “EIC” on the dotted line next to Form 1040, line 65a. or (b) can lead to death. 2. Be sure you enter the nontaxable combat pay you elect to Qualifying child of more than one person. If the child meets include in earned income on Form 1040, line 65b. See Com- the conditions to be a qualifying child of more than one person, only bat pay, Nontaxable on page 43. one person can take the EIC based on that child. The other person(s) 3. If you have a qualifying child, complete and attach Schedule cannot take the EIC for people without a qualifying child, but may EIC. If your EIC for a year after 1996 was reduced or disaland be able to take the EIC based on a different qualifying child. If you lowed, see Form 8862, Who must file below. the other person(s) cannot agree who will take the EIC based on the same child, the IRS will apply the following rules. Exception to “time lived with you” condition. A child is contreated as the qualifying child of the parent. • If only one of the persons is the child’s parent, the child will be sidered to have lived with you for all of 2004 if the child was born or died in 2004 and your home was this child’s home for the entire • If both persons are the child’s parents, the child will be treated time he or she was alive in 2004. Temporary absences for special as the qualifying child of the parent with whom the child lived circumstances, such as for school, vacation, medical care, military for the longer period of time during 2004. If the child lived service, or detention in a juvenile facility, count as time lived at with each parent for the same amount of time, the child will be home. If your child is presumed to have been kidnapped by some- treated as the qualifying child of the parent who had the higher one who is not a family member, see Pub. 596 to find out if that adjusted gross income (AGI) for 2004. child is a qualifying child for the EIC. To get Pub. 596, see page 7. • If none of the persons is the child’s parent, the child will be If you were in the military stationed outside the United States, see treated as the qualifying child of the person who had the Members of the military below. highest AGI for 2004. Form 4797 filers. If the amount on Form 1040, line 13, includes The child must have a valid social security number as defined an amount from Form 4797, you must use Worksheet 1 in Pub. 596 below unless the child was born and died in 2004. If you do not to see if you can take the EIC. To get Pub. 596, see page 7. have a qualifying child, stop; you cannot take the EIC. Put “No” on Otherwise, stop; you cannot take the EIC. the dotted line next to line 65a. If you have a qualifying child, skip Step 4; go to Step 5 on page 43. Form 8862, Who must file. You must file Form 8862 if your EIC Example. You and your 5-year-old daughter moved in with for a year after 1996 was reduced or disallowed for any reason other your mother in April 2004. You are not a qualifying child of your than a math or clerical error. But do not file Form 8862 if either of mother. Your daughter meets the conditions to be a qualifying child the following applies. for both you and your mother. If you and your mother cannot agree 1. After your EIC was reduced or disallowed in an earlier year on who will treat your daughter as a qualifying child, the rules (a) you filed Form 8862 (or other documents) and your EIC above apply. Under these rules, you are entitled to treat your daughwas then allowed, and (b) your EIC has not been reduced or ter as a qualifying child because you are the child’s parent. Your disallowed again for any reason other than a math or clerical mother would not be entitled to take the EIC unless she has a error. different qualifying child. 2. You are taking the EIC without a qualifying child and the only reason your EIC was reduced or disallowed in the earlier year Social security number (SSN). For purposes of taking the EIC, a was because it was determined that a child listed on Schedule valid SSN is a number issued by the Social Security Administration EIC was not your qualifying child. unless “Not Valid for Employment” is printed on the social security card and the number was issued solely to apply for or receive a Also, do not file Form 8862 or take the credit for the: federally funded benefit. • 2 years after the most recent tax year for which there was a To find out how to get an SSN, see page 16. If you will not have final determination that your EIC was reduced or disallowed an SSN by April 15, 2005, see What If You Cannot File on Time? due to reckless or intentional disregard of the EIC rules, or on page 12. • 10 years after the most recent tax year for which there was a Student. A child who during any 5 months of 2004: final determination that your EIC was reduced or disallowed due to fraud. • Was enrolled as a full-time student at a school, or • Took a full-time, on-farm training course given by a school or Married child. A child who was married at the end of 2004 is a a state, county, or local government agency. qualifying child only if (a) you can claim him or her as your A school includes a technical, trade, or mechanical school. It dependent on Form 1040, line 6c, or (b) this child’s other parent does not include an on-the-job training course, correspondence claims him or her as a dependent under the rules for children of school, or night school. divorced or separated parents in Pub. 501. Members of the military. If you were on extended active duty Welfare benefits, Effect of credit on. Any refund you receive as outside the United States, your home is considered to be in the a result of taking the EIC will not be used to determine if you are United States during that duty period. Extended active duty is eligible for the following programs or how much you can receive military duty ordered for an indefinite period or for a period of more from them. But if the refund you receive because of the EIC is not than 90 days. Once you begin serving extended active duty, you are spent within a certain period of time, it may count as an asset (or considered to be on extended active duty even if you serve fewer resource) and affect your eligibility. than 90 days. • Temporary Assistance for Needy Families (TANF). • Medicaid and supplemental security income (SSI). Nonresident aliens. If your filing status is married filing jointly, go to Step 2 on page 41. Otherwise, stop; you cannot take the EIC. • Food stamps and low-income housing. Permanently and totally disabled child. A child who cannot engage in any substantial gainful activity because of a physical or Need more information or forms? See page 7. -44-
Worksheet A—Earned Income Credit (EIC)—Lines 65a and 65b Form 1040—Lines 65a and 65b Keep for Your Records Before you begin: Be sure you are using the correct worksheet. Do not use this worksheet if you were self-employed, or you are filing Schedule SE because you were a member of the clergy or you had church employee income, or you are filing Schedule C or C-EZ as a statutory employee. Instead, use Worksheet B that begins on page 46. Part 1 1. Enter your earned income from Step 5 on page 43. 1 All Filers Using Worksheet A 2. Look up the amount on line 1 above in the EIC Table on pages 48–53 to find the credit. Be sure you use the correct column for your filing status and the number of children you have. Enter the credit here. 2 STOP If line 2 is zero, You cannot take the credit. Put “No” on the dotted line next to line 65a. 3. Enter the amount from Form 1040, line 37. 3 4. Are the amounts on lines 3 and 1 the same? Yes. Skip line 5; enter the amount from line 2 on line 6. No. Go to line 5. Part 2 Filers Who Answered “No” on Line 4 5. If you have: ● No qualifying children, is the amount on line 3 less than $6,400 ($7,400 if married filing jointly)? ● 1 or more qualifying children, is the amount on line 3 less than $14,050 ($15,050 if married filing jointly)? Yes. Leave line 5 blank; enter the amount from line 2 on line 6. No. Look up the amount on line 3 in the EIC Table on pages 48–53 to find the credit. Be sure you use the correct column for your filing status and the number of children you have. Enter the credit here. Look at the amounts on lines 5 and 2. Then, enter the smaller amount on line 6. 5 Part 3 Your Earned Income Credit 6. This is your earned income credit. Reminder— If you have a qualifying child, complete and attach Schedule EIC. 1040 6 Enter this amount on Form 1040, line 65a. 1040 EIC CAUTION If your EIC for a year after 1996 was reduced or disallowed, see page 44 to find out if you must file Form 8862 to take the credit for 2004. -45- 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
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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 and 36: Line 44 • Tax-exempt interest fro
Page 37 and 38: Line 51—Child Tax Credit What Is
Page 39 and 40: ured the credit. Check box c and en
Page 41 and 42: Lines 65a and 65b— Earned Income
Page 43: Form 1040—Lines 65a and 65b Conti
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
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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
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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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