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

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• Certain business use of part of your • Deduction for repayment of amounts Line 20 home. For details, including limits that ap- under a claim of right if $3,000 or less. Unreimbursed Employee Expenses 587. ply, use TeleTax topic 509 (see page 8 of the Form 1040 instructions) or see Pub. Enter the total ordinary and necessary job • Certain educational expenses. For de- Other Miscellaneous expenses you paid for which you were not tails, use TeleTax topic 513 (see page 8 of reimbursed. (Amounts your employer in- the Form 1040 instructions) or see Pub. Deductions cluded in box 1 of your Form W-2 are not 970. Reduce your educational expenses by considered reimbursements.) any tuition and fees deduction you claimed An ordinary expense is one that is com- on Form 1040, line 27. Line 27 mon and accepted in your field of trade, Only the expenses listed next can be debusiness, is one or that profession. is helpful A and necessary appropriate ex- You for your may be educational able to take expenses a credit ducted amount of on each this expense line. List on the the dotted type lines and pense TIP for your business. An expense does not instead of a deduction. See have to be required to be considered neces- next to line 27. If you need more space, Form 8863 for details. sary. attach a statement showing the type and amount of each expense. Enter one total on But you must fill in and attach Form line 27. 2106 if either (1) or (2) next applies. Line 21 • Gambling losses, but only to the ex- 1. You claim any travel, transportation, meal, or entertainment expenses for your job. 2. Your employer paid you for any of your job expenses reportable on line 20. tent of gambling winnings reported on Form 1040, line 21. • Casualty and theft losses of income-producing property from Form 4684, lines 32 and 38b, or Form 4797, line 18a. • Federal estate tax on income in re- spect of a decedent. • Amortizable bond premium on bonds If you used your own vehicle TIP and (2) above does not apply, you may be able to file Form 2106-EZ instead. If you do not have to file Form 2106 or Tax Preparation Fees Enter the fees you paid for preparation of your tax return, including fees paid for filing your return electronically. If you paid your tax by credit card, do not include the convenience fee you were charged. Line 22 acquired before October 23, 1986. 2106-EZ, list the type and amount of each Other Expenses • Deduction for repayment of amounts expense on the dotted lines next to line 20. Enter the total amount you paid to produce under a claim of right if over $3,000. See If you need more space, attach a statement or collect taxable income and manage or Pub. 525 for details. showing the type and amount of each exprotect property held for earning income. • Certain unrecovered investment in a pense. Enter one total on line 20. But do not include any personal expenses. pension. Do not include on line 20 any List the type and amount of each expense • Impairment-related work expenses of educator expenses you de- on the dotted lines next to line 22. If you a disabled person. ducted on Form 1040, line 23. need more space, attach a statement showing the type and amount of each expense. Examples of other expenses to include Enter one total on line 22. For more details, see Pub. 529. on line 20 are: • Safety equipment, small tools, and Examples of expenses to include on line supplies needed for your job. 22 are: • Uniforms required by your employer • Certain legal and accounting fees. Total Itemized that are not suitable for ordinary wear. • Clerical help and office rent. • Protective clothing required in your • Custodial (for example, trust account) Deductions work, such as hard hats, safety shoes, and fees. glasses. • Your share of the investment ex- • Physical examinations required by penses of a regulated investment company. Line 28 your employer. • Certain losses on nonfederally insured • Dues to professional organizations Use the worksheet on page B-1 to figure the deposits in an insolvent or bankrupt finanamount to enter on line 28 if the amount on and chambers of commerce. cial institution. For details, including limits • Subscriptions to professional journals. that apply, see Pub. 529. Form 1040, line 37, is over $142,700 • Fees to employment agencies and • Casualty and theft losses of property ($71,350 if married filing separately). other costs to look for a new job in your used in performing services as an employee present occupation, even if you do not get a from Form 4684, lines 32 and 38b, or Form new job. 4797, line 18a. A-6
Instructions for Schedule B, after 1989. Interest and Ordinary Dividends Use Schedule B (Form 1040) if any of the following apply. • You had over $1,500 of taxable interest. • Any of the Special Rules listed in the instructions for line 1 apply to you. • You are claiming the exclusion of interest from series EE or I U.S. savings bonds issued • You had over $1,500 of ordinary dividends. • You received ordinary dividends as a nominee. • You had a foreign account or you received a distribution from, or were a grantor of, or transferor to, a foreign trust. Part III of the schedule has questions about foreign accounts and trusts. You may list more than one so. See the instructions for lines 7a and 7b residence, list first any interest the buyer TIP payer on each entry space for on page B-2. paid you on a mortgage or other form of lines 1 and 5, but be sure to seller financing. Be sure to show the clearly show the amount paid buyer’s name, address, and SSN. You must next to the payer’s name. Add the separate also let the buyer know your SSN. If you do amounts paid by the payers listed on an Part I. Interest not show the buyer’s name, address, and entry space and enter the total in the SSN, or let the buyer know your SSN, you “Amount” column. If you still need more may have to pay a $50 penalty. space, attach separate statements that are Line 1 the same size as the printed schedule. Use Nominees the same format as lines 1 and 5, but show Interest If you received a Form 1099-INT that inyour totals on Schedule B. Be sure to put Report on line 1 all of your taxable interest. cludes interest you received as a nominee your name and social security number Interest should be shown on your Forms (that is, in your name, but the interest actu- (SSN) on the statements and attach them at 1099-INT, Forms 1099-OID, or substitute ally belongs to someone else), report the the end of your return. statements. Include interest from series EE total on line 1. Do this even if you later and I U.S. savings bonds. List each payer’s distributed some or all of this income to name and show the amount. others. Under your last entry on line 1, put a subtotal of all interest listed on line 1. Be- What’s New Special Rules low this subtotal, enter “Nominee Distribu- You may have to pay a penalty of up to tion” and show the total interest you $10,000 (more in some cases) if you are Seller-Financed Mortgages received as a nominee. Subtract this required to file Form TD F 90-22.1 (for If you sold your home or other property and amount from the subtotal and enter the reforeign accounts and trusts), but do not do the buyer used the property as a personal sult on line 2. Itemized Deductions Worksheet—Line 28 Keep for Your Records 1. Enter the total of the amounts from Schedule A, lines 4, 9, 14, 18, 19, 26, and 27 ............. 1. 2. Enter the total of the amounts from Schedule A, lines 4, 13, and 19, plus any gambling and casualty or theft losses included on line 27. ................................................ 2. Be sure your total gambling and casualty or theft losses are clearly identified on the dotted lines next to line 27. 3. Is the amount on line 2 less than the amount on line 1? No. STOP Your deduction is not limited. Enter the amount from line 1 above on Schedule A, line 28. Yes. Subtract line 2 from line 1 ............................................... 3. 4. Multiply line 3 by 80% (.80) ....................................... 4. 5. Enter the amount from Form 1040, line 37 ............................ 5. 6. Enter: $142,700 ($71,350 if married filing separately) .................... 6. 7. Is the amount on line 6 less than the amount on line 5? No. STOP Your deduction is not limited. Enter the amount from line 1 above on Schedule A, line 28. Yes. Subtract line 6 from line 5 ................................. 7. 8. Multiply line 7 by 3% (.03) ........................................ 8. 9. Enter the smaller of line 4 or line 8 ............................................... 9. 10. Total itemized deductions. Subtract line 9 from line 1. Enter the result here and on Schedule A, line 28 ..................................................................... 10. B-1
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Note. This booklet does not contain
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What is IRS e-file? It’s the fast
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Tax Return Page Reference Questions
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Quick and Easy Access to Tax Help a
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Topic TeleTax Topics No. Subject No
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Before You Fill In Form 1040 See Ho
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Chart B—For Children and Other De
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Form Item and Box in Which it Shoul
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Line 2 December 31, 2004, you were
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Form 1040—Lines 7 and 8a less tha
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gross income was over $139,500 ($69
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Form 1040—Lines 16a and 16b Age (
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Form 1040—Lines 20a and 20b Socia
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Form 1040—Line 25 IRA Deduction W
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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 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 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: • You gave gifts of property that
Page 87 and 88: ing the tax year, and you did not m
Page 89 and 90: also include the amount collected i
Page 91 and 92: line 36. The amount you can deduct
Page 93 and 94: Principal Business or Professional
Page 95 and 96: Partnership Interests vestment. Thi
Page 97 and 98: If there is an amount in box 1c, se
Page 99 and 100: sale of your main home if you are n
Page 101 and 102: follow the applicable instructions
Page 105 and 106: which you entered the combined tota
Page 107 and 108: If your rental real estate loss is
Page 111 and 112: gain results from redemption of the
Page 113 and 114: • Deducting the prepayment will n
Page 117 and 118: 2001 Capital Gain Tax Worksheet—L
Page 119 and 120: 2002 Tax Rate Schedules—Line 12 S
Page 121 and 122: 2003 Tax Rate Schedules—Line 16 S
Page 125 and 126: homes, parking lots, warehouses, an
Page 127 and 128: Index to Instructions A Foreign Tax
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2004 Instructions for Form 1040 (ALL) - Supreme Law Firm

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