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1040 - Introductory Material


The Taxpayer Advocate Service Is Here To Help You 
 
 
What is the Taxpayer Advocate Service? 
The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS) that helps taxpayers and protects taxpayer rights. Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights.  
 
What can the Taxpayer Advocate Service do for you? 
We can help you resolve problems that you can’t resolve with the IRS. And our service is free. If you qualify for our assistance, your advocate will be with you at every turn and do everything possible. TAS can help you if:
  • Your problem is causing financial difficulty for you, your family, or your business.

  • You face (or your business is facing) an immediate threat of adverse action.

  • You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.

 
 
How can you reach us? 
We have offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is at www.TaxpayerAdvocate.irs.gov, at www.irs.gov/advocate, and in your local directory. You can also call us at 1-877-777-4778. 
 
How can you learn about your taxpayer rights? 
The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. Our Tax Toolkit at www.TaxpayerAdvocate.irs.gov can help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them. 
 
How else does the Taxpayer Advocate Service help taxpayers? 
TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to us at www.irs.gov/sams.
Low Income Taxpayer Clinics Help Taxpayers
Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Some serve individuals whose income is below a certain level and who need to resolve a tax problem. These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Some clinics provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. For more information, and to find a clinic near you, read the LITC page on www.irs.gov/litc or IRS Publication 4134, Low Income Taxpayer Clinic List. You can also get this publication at your local IRS office or by calling 1-800-829-3676.
 
Suggestions for Improving the IRS 
 
Taxpayer Advocacy Panel
Have a suggestion for improving the IRS and do not know who to contact? The Taxpayer Advocacy Panel (TAP) is a diverse group of citizen volunteers who listen to taxpayers, identify taxpayers’ issues, and make suggestions for improving IRS service and customer satisfaction. The panel is demographically and geographically diverse, with at least one member from each state, the District of Columbia, and Puerto Rico. Contact TAP at www.improveirs.org or 1-888-912-1227 (toll-free).
 

What's New

Introduction

For information about any additional changes to the 2015 tax law or any other developments affecting Form 1040 or its instructions, go to www.irs.gov/form1040.

Information reporting about health coverage.   If you or someone in your family had health coverage in 2015, the provider of that coverage is required to send you a Form 1095-A, 1095-B, or 1095-C (with Part III completed), that lists individuals in your family who were enrolled in the coverage and shows their months of coverage. You may use this information to help complete line 61. However, you do not need to wait to receive these forms to file your return. You may have had health care coverage for some or all of 2015 even if you didn’t receive a form with this information, and you may rely on other information about your coverage to complete line 61.

  For more information on why your health provider might be asking for your social security number, go to www.irs.gov/ACASSN.

Information reporting about employer offer of coverage.   If you or someone in your family was an employee in 2015, the employer may be required to send you a Form 1095-C. Part II of Form 1095-C shows whether your employer offered you health insurance coverage and, if so, information about the offer. This information may be relevant if you purchased health insurance coverage for 2015 through the Health Insurance Marketplace and wish to claim the premium tax credit on line 69. However, you do not need to wait to receive this form to file your return. You may rely on other information received from your employer. If you do not wish to claim the premium tax credit for 2015, you do not need the information in Part II. For more information on who is eligible for the premium tax credit, see the instructions for Form 8962.

Achieving a Better Life Experience (ABLE) account.   This is a new type of savings account for individuals with disabilities and their families. For 2015, you can contribute up to $14,000. Distributions are tax‐free if used to pay the beneficiary’s qualified disability expenses. Do not deduct your contributions on your tax return. For details, see Pub. 907 and the instructions for lines 21 and 59.

Due date of return.    File Form 1040 by April 18, 2016. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia—even if you do not live in the District of Columbia. If you live in Maine or Massachusetts, you have until April 19, 2016. That is because of the Patriots’ Day holiday in those states.

Public safety officers.   Certain amounts received because of the death of a public safety officer are nontaxable. See Pub. 525 for details.

Certain charitable contributions.   A special rule applies to cash contributions made between January 1, 2015, and April 15, 2015, to benefit the families of slain New York detectives Wenjian Liu or Rafael Ramos. See Pub. 526 for details.

Direct deposits of refund to a myRA® account.   You now can have your refund directly deposited to a new retirement savings program called myRA®. This is a starter retirement account offered by the Department of the Treasury. See the instructions for lines 76a through 76d. For more information and to open a myRA account online, visit www.myRA.gov.

Health coverage tax credit.   The health coverage tax credit, which expired at the end of 2013, has been reinstated retroactive to January 1, 2014. To see if you are eligible for the credit, and to see how to claim the credit for 2014 and 2015, visit www.irs.gov/HCTC, or see Form 8885 and its instructions.

Earned income credit.   If you didn't have a social security number (an SSN) by the due date of your 2015 return (including extensions), you can't claim the EIC on either your original or an amended 2015 return, even if you later get an SSN. Also, if a child didn't have an SSN by the due date of your return (including extensions), you can't count that child as a qualifying child in figuring the EIC on either your original or an amended 2015 return, even if that child later gets an SSN. See the instructions for lines 66a and 66b.

Child tax credit.   If you didn't have an SSN (or ITIN) by the due date of your 2015 return (including extensions), you can't claim the child tax credit on either your original or an amended 2015 return, even if you later get an SSN (or ITIN). Also, no credit is allowed on either your original or an amended 2015 return with respect to a child who didn't have an SSN, ATIN, or ITIN by the due date of your return (including extensions), even if that child later gets one of those numbers. See the instructions for line 52.

American opportunity credit.   If you didn't have an SSN (or ITIN) by the due date of your 2015 return (including extensions), you can't claim the American opportunity credit on either your original or an amended 2015 return, even if you later get an SSN (or ITIN). Also, you can't claim this credit on your original or an amended 2015 return for a student who didn't have an SSN, ATIN, or ITIN by the due date of your return (including extensions), even if the student later gets one of those numbers. See Pub. 970 and the instructions for Form 8863 for more information.

Additional child tax credit.   You can't claim the additional child tax credit on line 67 if you file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. See Schedule 8812 and its instructions.

Health care individual responsibility payment increased.   If you or someone in your household didn’t have qualifying health care coverage or qualify for a coverage exemption for one or more months of 2015, the amount of your shared responsibility payment may be much more this year than it was last year. Like last year, you must either:
  • Indicate on line 61 that you, your spouse (if filing jointly), and anyone you can or do claim as a dependent had qualifying health care coverage throughout 2015,

  • Attach Form 8965 to claim an exemption from the requirement to have health care coverage, or

  • Make a shared responsibility payment if, for any month in 2015, you, your spouse (if filing jointly), or anyone you can or do claim as a dependent didn’t have coverage and do not qualify for a coverage exemption.

For more information, see the instructions for line 61 and Form 8965.

Requirement to reconcile advance payments of the premium tax credit.   If you or a family member enrolled in health insurance through the Marketplace and advance payments of the premium tax credit were made to your insurance company to reduce your monthly premium payment, you must attach Form 8962 to your return to reconcile (compare) the advance payments with your premium tax credit for the year, which you figure on Form 8962. The Marketplace is required to send Form 1095-A by February 1, 2016, listing the advance payments and other information you need to figure your premium tax credit. Use Form 1095-A to complete Form 8962. Attach Form 8962 to your return. Do not attach Form 1095-A to your return.

Form W-2 verification code.   The IRS is testing the use of a 16-character code to verify certain Forms W-2. If you are e-filing and your Form W-2 includes a code in a box labeled “Verification Code,” enter the code when prompted by your software; disregard the prompt if your Form W-2 doesn't have the code. If you are filing a paper Form 1040, you do not have to use the code.

Filing Requirements

Introduction

These rules apply to all U.S. citizens, regardless of where they live, and resident aliens.

Have you tried IRS e-file? It's the fastest way to get your refund and it's free if you are eligible. Visit IRS.gov for details.

Do You Have To File?

Use Chart A, B, or C to see if you must file a return. U.S. citizens who lived in or had income from a U.S. possession should see Pub. 570. Residents of Puerto Rico can use Tax Topic 901 to see if they must file.

Even if you do not otherwise have to file a return, you should file one to get a refund of any federal income tax withheld. You should also file if you are eligible for any of the following credits.

  • Earned income credit.

  • Additional child tax credit.

  • American opportunity credit.

  • Credit for federal tax on fuels.

  • Premium tax credit.

  • Health coverage tax credit.

See Pub. 501 for details. Also see Pub. 501 if you do not have to file but received a Form 1099-B (or substitute statement).

Premium tax credit.   If advance payments of the premium tax credit were made for you, your spouse with whom you are filing a joint return, or a dependent who enrolled in coverage through the Marketplace, you must file a 2015 return and attach Form 8962.

  You (or whoever enrolled you) should have received Form 1095-A from the Marketplace with information about your coverage and any advance payments. You must attach Form 8962 even if someone else enrolled you, your spouse, or your dependent. If you are a dependent who is claimed on someone else's 2015 return, you do not have to attach Form 8962.

Exception for certain children under age 19 or full-time students.   If certain conditions apply, you can elect to include on your return the income of a child who was under age 19 at the end of 2015 or was a full-time student under age 24 at the end of 2015. To do so, use Form 8814. If you make this election, your child doesn't have to file a return. For details, use Tax Topic 553 or see Form 8814.

  A child born on January 1, 1992, is considered to be age 24 at the end of 2015. Do not use Form 8814 for such a child.

Resident aliens.   These rules also apply if you were a resident alien. Also, you may qualify for certain tax treaty benefits. See Pub. 519 for details.

Nonresident aliens and dual-status aliens.   These rules also apply if you were a nonresident alien or a dual-status alien and both of the following apply.
  • You were married to a U.S. citizen or resident alien at the end of 2015.

  • You elected to be taxed as a resident alien.

See Pub. 519 for details.

  
Specific rules apply to determine if you are a resident alien, nonresident alien, or dual-status alien. Most nonresident aliens and dual-status aliens have different filing requirements and may have to file Form 1040NR or Form 1040NR-EZ. Pub. 519 discusses these requirements and other information to help aliens comply with U.S. tax law.

When and Where Should You File?

File Form 1040 by April 18, 2016. (The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia – even if you do not live in the District of Columbia. If you live in Maine or Massachusetts, you have until April 19, 2016, because of the Patriots' Day holiday in those states.) If you file after this date, you may have to pay interest and penalties. See Interest and Penalties, later.

If you were serving in, or in support of, the U.S. Armed Forces in a designated combat zone or contingency operation, you may be able to file later. See Pub. 3 for details.

If you e-file your return, there is no need to mail it. See the e-file page, earlier, or IRS.gov for more information. However, if you choose to mail it, filing instructions and addresses are at the end of these instructions.

What if You Can't File on Time?

You can get an automatic 6-month extension if, no later than the date your return is due, you file Form 4868. For details, see Form 4868. Instead of filing Form 4868, you can apply for an automatic extension by making an electronic payment by the due date of your return.

An automatic 6-month extension to file doesn't extend the time to pay your tax. If you do not pay your tax by the original due date of your return, you will owe interest on the unpaid tax and may owe penalties. See Form 4868.

If you are a U.S. citizen or resident alien, you may qualify for an automatic extension of time to file without filing Form 4868. You qualify if, on the due date of your return, you meet one of the following conditions.

  • You live outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico.

  • You are in military or naval service on duty outside the United States and Puerto Rico.

This extension gives you an extra 2 months to file and pay the tax, but interest will be charged from the original due date of the return on any unpaid tax. You must include a statement showing that you meet the requirements. If you are still unable to file your return by the end of the 2-month period, you can get an additional 4 months if, no later than June 15, 2016, you file Form 4868. This 4-month extension of time to file doesn't extend the time to pay your tax. See Form 4868.

Private Delivery Services

If you choose to mail your return, you can use certain private delivery services designated by the IRS to meet the "timely mailing treated as timely filing/paying" rule for tax returns and payments. These private delivery services include only the following.

  • FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International Next Flight Out, FedEx International Priority, FedEx International First, and FedEx International Economy.

  • UPS Next Day Air Early AM, UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

For more information, go to IRS.gov and enter “private delivery service” in the search box. The search results will direct you to the IRS mailing address to use if you are using a private delivery service. You will also find any updates to the list of designated private delivery services.

The private delivery service can tell you how to get written proof of the mailing date.

Chart A—For Most People

  IF your filing status is . . . AND at the end of 2015 
you were* . . .
THEN file a return if your gross 
income** was at least . . .
 
  Single 
(see the instructions for line 1)
under 65 
65 or older
$10,300 
11,850
   
  Married filing jointly*** 
(see the instructions for line 2)
under 65 (both spouses) 
65 or older (one spouse) 
65 or older (both spouses)
$20,600 
21,850 
23,100
   
  Married filing separately (see the instructions for line 3) any age $4,000    
  Head of household (see the instructions for line 4) under 65 
65 or older
$13,250 
14,800
   
  Qualifying widow(er) with dependent child (see the instructions for line 5) under 65 
65 or older
$16,600 
17,850
   
  *If you were born on January 1, 1951, you are considered to be age 65 at the end of 2015. (If your spouse died in 2015 or if you are preparing a return for someone who died in 2015, see Pub. 501.)  
  **Gross income means all income you received in the form of money, goods, property, and services that isn't exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time in 2015 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the instructions for lines 20a and 20b to figure the taxable part of social security benefits you must include in gross income. Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. But, in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9.  
  ***If you didn't live with your spouse at the end of 2015 (or on the date your spouse died) and your gross income was at least $4,000, you must file a return regardless of your age.  

Chart B—For Children and Other Dependents (See the instructions for line 6c to find out if someone can claim you as a dependent.)

If your parent (or someone else) can claim you as a dependent, use this chart to see if you must file a return.
In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Gross income is the total of your unearned and earned income.
Single dependents. Were you either age 65 or older or blind?
 
No. You must file a return if any of the following apply.
   
  • Your unearned income was over $1,050.

  • Your earned income was over $6,300.

  • Your gross income was more than the larger of—

     
  • $1,050, or

  • Your earned income (up to $5,950) plus $350.

 
Yes. You must file a return if any of the following apply.
   
  • Your unearned income was over $2,600 ($4,150 if 65 or older and blind).

  • Your earned income was over $7,850 ($9,400 if 65 or older and blind).

  • Your gross income was more than the larger of—

     
  • $2,600 ($4,150 if 65 or older and blind), or

  • Your earned income (up to $5,950) plus $1,900 ($3,450 if 65 or older and blind).

Married dependents. Were you either age 65 or older or blind?
 
No. You must file a return if any of the following apply.
   
  • Your unearned income was over $1,050.

  • Your earned income was over $6,300.

  • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.

  • Your gross income was more than the larger of—

     
  • $1,050, or

  • Your earned income (up to $5,950) plus $350.

 
Yes. You must file a return if any of the following apply.
   
  • Your unearned income was over $2,300 ($3,550 if 65 or older and blind).

  • Your earned income was over $7,550 ($8,800 if 65 or older and blind).

  • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.

  • Your gross income was more than the larger of—

     
  • $2,300 ($3,550 if 65 or older and blind), or

  • Your earned income (up to $5,950) plus $1,600 ($2,850 if 65 or older and blind).

Chart C—Other Situations When You Must File

You must file a return if any of the five conditions below apply for 2015.
1.   You owe any special taxes, including any of the following.
  a. Alternative minimum tax.
  b. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. But if you are filing a return only because you owe this tax, you can file Form 5329 by itself.
  c. Household employment taxes. But if you are filing a return only because you owe this tax, you can file Schedule H by itself.
  d. Social security and Medicare tax on tips you didn't report to your employer or on wages you received from an employer who didn't withhold these taxes.
  e. Recapture of first-time homebuyer credit. See the instructions for line 60b.
  f. Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts. See the instructions for line 62.
  g. Recapture taxes. See the instructions for lines 44, 60b, and line 62.
2.   You (or your spouse, if filing jointly) received health savings account, Archer MSA, or Medicare Advantage MSA distributions.
3.   You had net earnings from self-employment of at least $400.
4.   You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes.
5.   Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage through the Marketplace. You or whoever enrolled you should have received Form(s) 1095-A showing the amount of the advance payments.

Where To Report Certain Items From 2015 Forms W-2, 1097, 1098, and 1099

File electronically. You may be eligible for free tax software that will take the guesswork out of preparing your return. Free File makes available free brand-name software and free e-file. Visit www.irs.gov/freefile for details.

If any federal income tax withheld is shown on these forms, include the tax withheld on Form 1040, line 64. If any state or local income tax withheld is shown on these forms and you deduct state and local income taxes on Schedule A, line 5, include the tax withheld in your deduction on that line.

  Form Item and Box in Which It Should Appear   Where To Report
  W-2 Wages, tips, other compensation (box 1)   Form 1040, line 7
    Allocated tips (box 8)   See Wages, Salaries, Tips, etc.
    Dependent care benefits (box 10)   Form 2441, Part III
    Adoption benefits (box 12, code T)   Form 8839, line 20
    Employer contributions to an 
Archer MSA (box 12, code R)
  Form 8853, line 1
    Employer contributions to a health savings account (box 12, code W)   Form 8889, line 9
    Uncollected social security and Medicare or RRTA tax (box 12, code A, B, M, or N)   See the instructions for Form 1040, line 62
  W-2G Gambling winnings (box 1)   Form 1040, line 21 (Schedule C or C-EZ for professional gamblers)
  1097-BTC Bond tax credit   See Form 8912 and its instructions
  1098 Mortgage interest (box 1) 
Points (box 2)
    Schedule A, line 10, but first see the instructions on Form 1098*
    Refund of overpaid interest (box 3)   Form 1040, line 21, but first see the instructions on Form 1098*
    Mortgage insurance premiums (box 4)     See the instructions for Schedule A, line 13*
  1098-C Contributions of motor vehicles, boats, and airplanes   Schedule A, line 17
  1098-E Student loan interest (box 1)   See the instructions for Form 1040, line 33*
  1098-MA Homeowner mortgage payments (box 3)   Schedule A, but first see the instructions on Form 1098-MA
  1098-T Qualified tuition and related expenses 
(box 1)
  See the instructions for Form 1040, line 34, or Form 1040, line 50; but first see the instructions on Form 1098-T*
  1099-A Acquisition or abandonment of secured property   See Pub. 4681
  1099-B Sales price of stocks, bonds, etc. (box 1d), cost or other basis (box 1e), and adjustments (box 1g)   Form 8949 or Schedule D, whichever applies; see the Instructions for Form 8949
    Aggregate profit or (loss) on contracts (box 11)   Form 6781, line 1
    Bartering (box 13)   See Pub. 525
  1099-C Canceled debt (box 2)   See Pub. 4681
  1099-DIV Total ordinary dividends (box 1a)   Form 1040, line 9a
    Qualified dividends (box 1b)   See the instructions for Form 1040, line 9b
    Total capital gain distributions (box 2a)   Form 1040, line 13, or, if required, Schedule D, line 13
    Unrecaptured section 1250 gain (box 2b)   See the instructions for Schedule D, line 19
    Section 1202 gain (box 2c)   See Exclusion of Gain on Qualified Small Business (QSB) Stock in the instructions for Schedule D
    Collectibles (28%) gain (box 2d)   See the instructions for Schedule D, line 18
    Nondividend distributions (box 3)   See the instructions for Form 1040, line 9a
    Investment expenses (box 5)   Schedule A, line 23
    Foreign tax paid (box 6)   Form 1040, line 48, or Schedule A, line 8; but first see the instructions for line 48
    Exempt-interest dividends (box 10)   Form 1040, line 8b
    Specified private activity bond interest dividends (box 11)   Form 6251, line 12
  1099-G Unemployment compensation (box 1)   See the instructions for Form 1040, line 19
    State or local income tax refunds, credits, or offsets (box 2)   See the instructions for Form 1040, line 10, and if box 8 on Form 1099-G is checked, see the box 8 instructions
    RTAA payments (box 5)   Form 1040, line 21
    Taxable grants (box 6)   Form 1040, line 21*
    Agriculture payments (box 7)   See the Instructions for Schedule F or Pub. 225*
    Market gain (box 9)   See the Instructions for Schedule F
*If the item relates to an activity for which you are required to file Schedule C, C-EZ, E, or F or Form 4835, report the taxable or deductible amount allocable to the activity on that schedule or form instead.
  1099-INT Interest income (box 1)   See the instructions on Form 1099-INT
    Early withdrawal penalty (box 2)   Form 1040, line 30
    Interest on U.S. savings bonds and  
Treasury obligations (box 3)
  See the instructions on Form 1099-INT and the instructions for Form 1040, line 8a
    Investment expenses (box 5)   Schedule A, line 23
    Foreign tax paid (box 6)   Form 1040, line 48, or Schedule A, line 8; but first see the instructions for line 48
    Tax-exempt interest (box 8)   Form 1040, line 8b
    Specified private activity bond interest (box 9)   Form 6251, line 12
    Market discount (box 10)   Form 1040, line 8a
    Bond premium (box 11) and bond premium on tax-exempt bond (box 13)   See the instructions on Form 1099-INT and Pub. 550
  1099-K Payment card and third party network transactions     Schedule C, C-EZ, E, or F
  1099-LTC Long-term care and accelerated death benefits   See Pub. 525 and the Instructions for Form 8853
  1099-MISC Rents (box 1)   See the Instructions for Schedule E*
    Royalties (box 2)   See the Instructions for Schedule E* (for timber, coal, and iron ore royalties, see Pub. 544)*
    Other income (box 3)   Form 1040, line 21*
    Nonemployee compensation (box 7)   Schedule C, C-EZ, or F; but if you were not self-employed, see the instructions on Form 1099-MISC
    Excess golden parachute payments (box 13)   See the instructions for Form 1040, line 62
    Other (boxes 5, 6, 8, 9, 10, 14, and 15b)   See the instructions on Form 1099-MISC
  1099-OID Original issue discount (box 1) 
Other periodic interest (box 2)
    See the instructions on Form 1099-OID
    Early withdrawal penalty (box 3)   Form 1040, line 30
    Market discount (box 5)   Form 1040, line 8a
    Acquisition premium (box 6)   See the instructions on Form 1099-OID and Pub. 550
    Original issue discount on U.S. Treasury obligations (box 8)   See the instructions on Form 1099-OID
    Investment expenses (box 9)   Schedule A, line 23
  1099-PATR Patronage dividends and other distributions from a cooperative (boxes 1, 2, 3, and 5)   Schedule C, C-EZ, or F or Form 4835; but first see the instructions on Form 1099-PATR
    Domestic production activities deduction (box 6)   Form 8903, line 23
    Credits and other deductions (boxes 7, 8, and 10)   See the instructions on Form 1099-PATR
    Patron's AMT adjustment (box 9)   Form 6251, line 27
  1099-Q Qualified education program payments   See the instructions for Form 1040, line 21
  1099–QA Distributions from ABLE accounts   See the instructions for line 21, Form 5329, and Pub. 907
  1099-R Distributions from IRAs**   See the instructions for Form 1040, lines 15a and 15b
    Distributions from pensions, annuities, etc.   See the instructions for Form 1040, lines 16a and 16b
    Capital gain (box 3)   See the instructions on Form 1099-R
    Disability income with code 3 in box 7   See the instructions for Form 1040, line 7
  1099-S Gross proceeds from real estate transactions  
(box 2)
  Form 4797, Form 6252, Form 8824, or Form 8949
    Buyer's part of real estate tax (box 5)   See the instructions for Schedule A, line 6*
  1099-SA Distributions from health savings accounts (HSAs)   Form 8889, line 14a
    Distributions from MSAs***   Form 8853
  SSA-1099 Social security benefits   See the instructions for lines 20a and 20b
  RRB-1099 Railroad retirement benefits   See the instructions for lines 20a and 20b
*If the item relates to an activity for which you are required to file Schedule C, C-EZ, E, or F or Form 4835, report the taxable or deductible amount allocable to the activity on that schedule or form instead.
**This includes distributions from Roth, SEP, and SIMPLE IRAs.
***This includes distributions from Archer and Medicare Advantage MSAs.

Line Instructions for Form 1040

Introduction

You may be eligible for free tax software that will take the guesswork out of preparing your return. Free File makes available free brand-name software and free e-file. Visit www.irs.gov/freefile for details.

 
 
 
Section references are to the Internal Revenue Code.

Name and Address

Print or type the information in the spaces provided. If you are married filing a separate return, enter your spouse's name on line 3 instead of below your name.

If you filed a joint return for 2014 and you are filing a joint return for 2015 with the same spouse, be sure to enter your names and SSNs in the same order as on your 2014 return.

Name Change

If you changed your name because of marriage, divorce, etc., be sure to report the change to the Social Security Administration (SSA) before filing your return. This prevents delays in processing your return and issuing refunds. It also safeguards your future social security benefits.

Address Change

If you plan to move after filing your return, use Form 8822 to notify the IRS of your new address.

P.O. Box

Enter your box number only if your post office doesn't deliver mail to your home.

Foreign Address

If you have a foreign address, enter the city name on the appropriate line. Do not enter any other information on that line, but also complete the spaces below that line. Do not abbreviate the country name. Follow the country's practice for entering the postal code and the name of the province, county, or state.

Death of a Taxpayer

See Death of a Taxpayer under General Information, later.

Social Security Number (SSN)

An incorrect or missing SSN can increase your tax, reduce your refund, or delay your refund. To apply for an SSN, fill in Form SS-5 and return it, along with the appropriate evidence documents, to the Social Security Administration (SSA). You can get Form SS-5 online at www.socialsecurity.gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. It usually takes about 2 weeks to get an SSN once the SSA has all the evidence and information it needs.

Check that both the name and SSN on your Forms 1040, W-2, and 1099 agree with your social security card. If they do not, certain deductions and credits on your Form 1040 may be reduced or disallowed and you may not receive credit for your social security earnings. If your Form W-2 shows an incorrect SSN or name, notify your employer or the form-issuing agent as soon as possible to make sure your earnings are credited to your social security record. If the name or SSN on your social security card is incorrect, call the SSA.

IRS Individual Taxpayer Identification Numbers (ITINs) for Aliens

If you are a nonresident or resident alien and you do not have and are not eligible to get an SSN, you must apply for an ITIN. For more information, see Form W-7 and its instructions. It takes about 7 weeks to get an ITIN.

If you already have an ITIN, enter it wherever your SSN is requested on your tax return.

An ITIN is for tax use only. It doesn't entitle you to social security benefits or change your employment or immigration status under U.S. law.

If you receive an SSN after previously using an ITIN, stop using your ITIN. Use your SSN instead. Visit a local IRS office or write a letter to the IRS explaining that you now have an SSN and want all your tax records combined under your SSN. Details about what to include with the letter and where to mail it are at www.irs.gov/Individuals/Additional-ITIN-Information.

Nonresident Alien Spouse

If your spouse is a nonresident alien, he or she must have either an SSN or an ITIN if:

  • You file a joint return,

  • You file a separate return and claim an exemption for your spouse, or

  • Your spouse is filing a separate return.

Presidential Election Campaign Fund

This fund helps pay for Presidential election campaigns. The fund reduces candidates' dependence on large contributions from individuals and groups and places candidates on an equal financial footing in the general election. The fund also helps pay for pediatric medical research. If you want $3 to go to this fund, check the box. If you are filing a joint return, your spouse can also have $3 go to the fund. If you check a box, your tax or refund won't change.

Filing Status

Check only the filing status that applies to you. The ones that will usually give you the lowest tax are listed last.

  • Married filing separately.

  • Single.

  • Head of household.

  • Married filing jointly.

  • Qualifying widow(er) with dependent child.

For information about marital status, see Pub. 501.

More than one filing status can apply to you. You can choose the one that will give you the lowest tax.

Line 1

Single

You can check the box on line 1 if any of the following was true on December 31, 2015.

  • You were never married.

  • You were legally separated according to your state law under a decree of divorce or separate maintenance. But if, at the end of 2015, your divorce wasn't final (an interlocutory decree), you are considered married and can't check the box on line 1.

  • You were widowed before January 1, 2015, and didn't remarry before the end of 2015. But if you have a dependent child, you may be able to use the qualifying widow(er) filing status. See the instructions for line 5.

Line 2

Married Filing Jointly

You can check the box on line 2 if any of the following apply.

  • You were married at the end of 2015, even if you didn't live with your spouse at the end of 2015.

  • Your spouse died in 2015 and you didn't remarry in 2015.

  • You were married at the end of 2015, and your spouse died in 2016 before filing a 2015 return.

A married couple filing jointly report their combined income and deduct their combined allowable expenses on one return. They can file a joint return even if only one had income or if they didn't live together all year. However, both persons must sign the return. Once you file a joint return, you can't choose to file separate returns for that year after the due date of the return.

Joint and several tax liability.   If you file a joint return, both you and your spouse are generally responsible for the tax and interest or penalties due on the return. This means that if one spouse doesn't pay the tax due, the other may have to. Or, if one spouse doesn't report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. You may want to file separately if:
  • You believe your spouse isn't reporting all of his or her income, or

  • You do not want to be responsible for any taxes due if your spouse doesn't have enough tax withheld or doesn't pay enough estimated tax.

See the instructions for line 3. Also see Innocent Spouse Relief under General Information, later.

Nonresident aliens and dual-status aliens.   Generally, a married couple can't file a joint return if either spouse is a nonresident alien at any time during the year. However, if you were a nonresident alien or a dual-status alien and were married to a U.S. citizen or resident alien at the end of 2015, you can elect to be treated as a resident alien and file a joint return. See Pub. 519 for details.

Line 3

Married Filing Separately

If you are married and file a separate return, you generally report only your own income, exemptions, deductions, and credits. Generally, you are responsible only for the tax on your own income. Different rules apply to people in community property states; see Pub. 555.

However, you will usually pay more tax than if you use another filing status for which you qualify. Also, if you file a separate return, you can't take the student loan interest deduction, the tuition and fees deduction, the education credits, or the earned income credit. You also can't take the standard deduction if your spouse itemizes deductions.

Be sure to enter your spouse's SSN or ITIN on Form 1040. If your spouse doesn't have and isn't required to have an SSN or ITIN, enter “NRA.

You may be able to file as head of household if you had a child living with you and you lived apart from your spouse during the last 6 months of 2015. See Married persons who live apart.

Line 4

Head of Household

This filing status is for unmarried individuals who provide a home for certain other persons. You are considered unmarried for this purpose if any of the following applies.

  • You were legally separated according to your state law under a decree of divorce or separate maintenance at the end of 2015. But if, at the end of 2015, your divorce wasn't final (an interlocutory decree), you are considered married.

  • You are married but lived apart from your spouse for the last 6 months of 2015 and you meet the other rules under Married persons who live apart.

  • You are married to a nonresident alien at any time during the year and you do not choose to treat him or her as a resident alien.

Check the box on line 4 only if you are unmarried (or considered unmarried) and either Test 1 or Test 2 applies.

Test 1.   You paid over half the cost of keeping up a home that was the main home for all of 2015 of your parent whom you can claim as a dependent on line 6c, except under a multiple support agreement (see the line 6c instructions). Your parent didn't have to live with you.

Test 2.   You paid over half the cost of keeping up a home in which you lived and in which one of the following also lived for more than half of the year (if half or less, see Exception to time lived with you).
  1. Any person whom you can claim as a dependent on line 6c. But do not include:

    1. Your child whom you claim as your dependent because of the rule for Children of divorced or separated parents in the line 6c instructions,

    2. Any person who is your dependent only because he or she lived with you for all of 2015, or

    3. Any person you claimed as a dependent under a multiple support agreement. See the line 6c instructions.

  2. Your unmarried qualifying child who isn't your dependent.

  3. Your married qualifying child who isn't your dependent only because you can be claimed as a dependent on line 6c of someone else's 2015 return.

  4. Your qualifying child who, even though you are the custodial parent, isn't your dependent because of the rule for Children of divorced or separated parents in the line 6c instructions.

    If the child isn't claimed as your dependent on line 6c, enter the child's name on line 4. If you do not enter the name, it will take us longer to process your return.

Qualifying child.   To find out if someone is your qualifying child, see Step 1 of the line 6c instructions.

Dependent.   To find out if someone is your dependent, see the instructions for line 6c.

Exception to time lived with you.   Temporary absences by you or the other person for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time lived in the home. Also see Kidnapped child in the line 6c instructions, if applicable.

  If the person for whom you kept up a home was born or died in 2015, you still may be able to file as head of household. If the person is your qualifying child, the child must have lived with you for more than half the part of the year he or she was alive. If the person is anyone else, see Pub. 501.

Keeping up a home.   To find out what is included in the cost of keeping up a home, see Pub. 501.

  If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you can't count them as money you paid. However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost.

Married persons who live apart.   Even if you were not divorced or legally separated at the end of 2015, you are considered unmarried if all of the following apply.
  • You lived apart from your spouse for the last 6 months of 2015. Temporary absences for special circumstances, such as for business, medical care, school, or military service, count as time lived in the home.

  • You file a separate return from your spouse.

  • You paid over half the cost of keeping up your home for 2015.

  • Your home was the main home of your child, stepchild, or foster child for more than half of 2015 (if half or less, see Exception to time lived with you, earlier).

  • You can claim this child as your dependent or could claim the child except that the child's other parent can claim him or her under the rule for Children of divorced or separated parents in the line 6c instructions.

Adopted child.

An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

Foster child.

A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction.

Line 5

Qualifying Widow(er) With Dependent Child

You can check the box on line 5 and use joint return tax rates for 2015 if all of the following apply.

  1. Your spouse died in 2013 or 2014 and you didn't remarry before the end of 2015.

  2. You have a child or stepchild you can claim as a dependent on line 6c. This doesn't include a foster child.

  3. This child lived in your home for all of 2015. If the child didn't live with you for the required time, see Exception to time lived with you, later.

  4. You paid over half the cost of keeping up your home.

  5. You could have filed a joint return with your spouse the year he or she died, even if you didn't actually do so.

If your spouse died in 2015, you can't file as qualifying widow(er) with dependent child. Instead, see the instructions for line 2.

Adopted child.   An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

Dependent.   To find out if someone is your dependent, see the instructions for line 6c.

Exception to time lived with you.    Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time lived in the home. Also see Kidnapped child in the line 6c instructions, if applicable.

  A child is considered to have lived with you for all of 2015 if the child was born or died in 2015 and your home was the child's home for the entire time he or she was alive.

Keeping up a home.   To find out what is included in the cost of keeping up a home, see Pub. 501.

  If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you can't count them as money you paid. However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost.

Exemptions

You usually can deduct $4,000 on line 42 for each exemption you can take.

Line 6b

Spouse

Check the box on line 6b if either of the following applies.

  1. Your filing status is married filing jointly and your spouse can't be claimed as a dependent on another person's return.

  2. You were married at the end of 2015, your filing status is married filing separately or head of household, and both of the following apply.

    1. Your spouse had no income and isn't filing a return.

    2. Your spouse can't be claimed as a dependent on another person's return.

If your filing status is head of household and you check the box on line 6b, enter the name of your spouse on the dotted line next to line 6b. Also, enter your spouse's social security number in the space provided at the top of your return. If you became divorced or legally separated during 2015, you can't take an exemption for your former spouse.

Death of your spouse.   If your spouse died in 2015 and you didn't remarry by the end of 2015, check the box on line 6b if you could have taken an exemption for your spouse on the date of death. For other filing instructions, see Death of a Taxpayer under General Information, later.

Line 6c—Dependents

Dependents and Qualifying Child for Child Tax Credit

Follow the steps below to find out if a person qualifies as your dependent, qualifies you to take the child tax credit, or both. If you have more than four dependents, check the box to the left of line 6c and include a statement showing the information required in columns (1) through (4).

Step 1. Do You Have a Qualifying Child?

A qualifying child is a child who is your...
Son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew)
was ...
Under age 19 at the end of 2015 and younger than you  
(or your spouse, if filing jointly)
or
Under age 24 at the end of 2015, a student (defined later), and younger than you (or your spouse, if filing jointly)
or
Any age and permanently and totally disabled (defined later)
Who didn't provide over half of his or her own support for 2015 (see Pub. 501)
Who isn't filing a joint return for 2015  
or is filing a joint return for 2015 only to claim a refund of withheld income tax or estimated tax paid (see Pub. 501 for details and examples)
Who lived with you for more than half of 2015. If the child didn't live with you for the required time, see Exception to time lived with you, later.
If the child meets the conditions to be a qualifying child of any other person (other than your spouse if filing jointly) for 2015, see Qualifying child of more than one person, later.

1. Do you have a child who meets the conditions to be your qualifying child?

 [ ]
Yes.

Go to Step 2.

 [ ]
No.

Go to Step 4.

Step 2. Is Your Qualifying Child Your Dependent?

1. Was the child a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico? (See Pub. 519 for the definition of a U.S. national or U.S. resident alien. If the child was adopted, see Exception to citizen test, later.)

 [ ]
Yes.

 [ ]
No.

You can't claim this child as a dependent.

2. Was the child married?

 [ ]
Yes.

See Married person, later.

 [ ]
No.

3. Could you, or your spouse if filing jointly, be claimed as a dependent on someone else's 2015 tax return? See Steps 1, 2, and 4.

 [ ]
Yes.

You can't claim any dependents. Go to Form 1040, line 7.

 [ ]
No.

You can claim this child as a dependent. Complete Form 1040, line 6c, columns (1) through (3) for this child. Then, go to Step 3.

Step 3. Does Your Qualifying ChildQualify You for the Child Tax Credit?

1. Was the child under age 17 at the end of 2015?

 [ ]
Yes.

 [ ]
No.

This child isn't a qualifying child for the child tax credit.

2. Was the child a U.S. citizen, U.S. national, or U.S. resident alien? (See Pub. 519 for the definition of a U.S. national or U.S. resident alien. If the child was adopted, see Exception to citizen test, later.)

 [ ]
Yes.

This child is a qualifying child for the child tax credit. Check the box on Form 1040, line 6c, column (4).

 [ ]
No.

This child isn't a qualifying child for the child tax credit.

Step 4. Is Your Qualifying Relative Your Dependent?

A qualifying relative is a person who is your...
Son, daughter, stepchild, foster child, or a descendant of any of them (for example, your grandchild)
or
Brother, sister, half brother, half sister, or a son or daughter of any of them (for example, your niece or nephew)
or
Father, mother, or an ancestor or sibling of either of them (for example, your grandmother, grandfather, aunt, or uncle)
or
Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
or
Any other person (other than your spouse) who lived with you all year as a member of your household if your relationship didn't violate local law. If the person didn't live with you for the required time, see Exception to time lived with you, later
Who wasn't a qualifying child (see Step 1) of any taxpayer for 2015. For this purpose, a person isn't a taxpayer if he or she isn't required to file a U.S. income tax return and either doesn't file such a return or files only to get a refund of withheld income tax or estimated tax paid. See Pub. 501 for details and examples
Who had gross income of less than $4,000 in 2015. If the person was permanently and totally disabled, see Exception to gross income test, later
For whom you provided over half of his or her support in 2015. But see Children of divorced or separated parents, Multiple support agreements, and Kidnapped child, later.
 

1. Does any person meet the conditions to be your qualifying relative?

 [ ]
Yes.

 [ ]
No.

Go to Form 1040, line 7.

2. Was your qualifying relative a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico? (See Pub. 519 for the definition of a U.S. national or U.S. resident alien. If your qualifying relative was adopted, see Exception to citizen test, later.)

 [ ]
Yes.

 [ ]
No.

You can't claim this person as a dependent.

3. Was your qualifying relative married?

 [ ]
Yes.

See Married person, later.

 [ ]
No.

4. Could you, or your spouse if filing jointly, be claimed as a dependent on someone else's 2015 tax return? See Steps 1, 2, and 4.

 [ ]
Yes.

You can't claim any dependents. Go to Form 1040, line 7.

 [ ]
No.

You can claim this person as a dependent. Complete Form 1040, line 6c, columns (1) through (3). Do not check the box on Form 1040, line 6c, column (4).

Definitions and Special Rules

Adopted child.   An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

Adoption taxpayer identification numbers (ATINs).   If you have a dependent who was placed with you for legal adoption and you do not know his or her SSN, you must get an ATIN for the dependent from the IRS. See Form W-7A for details. If the dependent isn't a U.S. citizen or resident alien, apply for an ITIN instead, using Form W-7.

  If you didn't have an SSN (or ITIN) by the due date of your 2015 return (including extensions), you can't claim the child tax credit on either your original or an amended 2015 return, even if you later get an SSN (or ITIN). Also, no child tax credit is allowed on your original or an amended 2015 return with respect to a child who didn't have an SSN, ATIN, or ITIN by the due date of your return (including extensions), even if that child later gets one of those numbers. See the instructions for line 52.

Children of divorced or separated parents.   A child will be treated as the qualifying child or qualifying relative of his or her noncustodial parent (defined later) if all of the following conditions apply.
  1. The parents are divorced, legally separated, separated under a written separation agreement, or lived apart at all times during the last 6 months of 2015 (whether or not they are or were married).

  2. The child received over half of his or her support for 2015 from the parents (and the rules on Multiple support agreements, later, do not apply). Support of a child received from a parent's spouse is treated as provided by the parent.

  3. The child is in custody of one or both of the parents for more than half of 2015.

  4. Either of the following applies.

    1. The custodial parent signs Form 8332 or a substantially similar statement that he or she won't claim the child as a dependent for 2015, and the noncustodial parent includes a copy of the form or statement with his or her return. If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to include certain pages from the decree or agreement instead of Form 8332. See Post-1984 and pre-2009 decree or agreement and Post-2008 decree or agreement.

    2. A pre-1985 decree of divorce or separate maintenance or written separation agreement between the parents provides that the noncustodial parent can claim the child as a dependent, and the noncustodial parent provides at least $600 for support of the child during 2015.

  If conditions (1) through (4) apply, only the noncustodial parent can claim the child for purposes of the dependency exemption (line 6c) and the child tax credits (lines 52 and 67). However, this doesn't allow the noncustodial parent to claim head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, the earned income credit, or the health coverage tax credit. See Pub. 501 for details.

Example.

Even if conditions (1) through (4) are met and the custodial parent signs Form 8332 or a substantially similar statement that he or she will not claim the child as a dependent for 2015, this doesn't allow the noncustodial parent to claim the child as a qualifying child for the earned income credit. The custodial parent or another taxpayer, if eligible, can claim the child for the earned income credit.

Custodial and noncustodial parents.

The custodial parent is the parent with whom the child lived for the greater number of nights in 2015. The noncustodial parent is the other parent. If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. See Pub. 501 for an exception for a parent who works at night, rules for a child who is emancipated under state law, and other details.

Post-1984 and pre-2009 decree or agreement.

The decree or agreement must state all three of the following.

  1. The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support.

  2. The other parent won't claim the child as a dependent.

  3. The years for which the claim is released.

The noncustodial parent must include all of the following pages from the decree or agreement.

  • Cover page (include the other parent's SSN on that page).

  • The pages that include all the information identified in (1) through (3) above.

  • Signature page with the other parent's signature and date of agreement.

  
You must include the required information even if you filed it with your return in an earlier year.

Post-2008 decree or agreement.

If the divorce decree or separation agreement went into effect after 2008, the noncustodial parent can't include pages from the decree or agreement instead of Form 8332. The custodial parent must sign either Form 8332 or a substantially similar statement the only purpose of which is to release the custodial parent's claim to an exemption for a child, and the noncustodial parent must include a copy with his or her return. The form or statement must release the custodial parent's claim to the child without any conditions. For example, the release must not depend on the noncustodial parent paying support.

Release of exemption revoked.

A custodial parent who has revoked his or her previous release of a claim to exemption for a child must include a copy of the revocation with his or her return. For details, see Form 8332.

Exception to citizen test.   If you are a U.S. citizen or U.S. national and your adopted child lived with you all year as a member of your household, that child meets the requirement to be a U.S. citizen in Step 2, question 1; Step 3, question 2; and Step 4, question 2.

Exception to gross income test.   If your relative (including a person who lived with you all year as a member of your household) is permanently and totally disabled (defined later), certain income for services performed at a sheltered workshop may be excluded for this test. For details, see Pub. 501.

Exception to time lived with you.   Temporary absences by you or the other person for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the person lived with you. Also see Children of divorced or separated parents, earlier, or Kidnapped child, later.

  If the person meets all other requirements to be your qualifying child but was born or died in 2015, the person is considered to have lived with you for more than half of 2015 if your home was this person's home for more than half the time he or she was alive in 2015.

  Any other person is considered to have lived with you for all of 2015 if the person was born or died in 2015 and your home was this person's home for the entire time he or she was alive in 2015.

Foster child.   A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction.

Kidnapped child.   If your child is presumed by law enforcement authorities to have been kidnapped by someone who isn't a family member, you may be able to take the child into account in determining your eligibility for head of household or qualifying widow(er) filing status, the dependency exemption, the child tax credit, and the earned income credit (EIC). For details, see Pub. 501 (Pub. 596 for the EIC).

Married person.   If the person is married and files a joint return, you can't claim that person as your dependent. However, if the person is married but doesn't file a joint return or files a joint return only to claim a refund of withheld income tax or estimated tax paid, you may be able to claim him or her as a dependent. (See Pub. 501 for details and examples.) In that case, go to Step 2, question 3 (for a qualifying child) or Step 4, question 4 (for a qualifying relative).

Multiple support agreements.   If no one person contributed over half of the support of your relative (or a person who lived with you all year as a member of your household) but you and another person(s) provided more than half of your relative's support, special rules may apply that would treat you as having provided over half of the support. For details, see Pub. 501.

Permanently and totally disabled.   A person is permanently and totally disabled if, at any time in 2015, the person can't engage in any substantial gainful activity because of a physical or mental condition and a doctor has determined that this condition has lasted or can be expected to last continuously for at least a year or can be expected to lead to death.

Qualifying child of more than one person.   Even if a child meets the conditions to be the qualifying child of more than one person, only one person can claim the child as a qualifying child for all of the following tax benefits, unless the special rule for Children of divorced or separated parents, described earlier, applies.
  1. Dependency exemption (line 6c).

  2. Child tax credits (lines 52 and 67).

  3. Head of household filing status (line 4).

  4. Credit for child and dependent care expenses (line 49).

  5. Exclusion for dependent care benefits (Form 2441, Part III).

  6. Earned income credit (lines 66a and 66b).

No other person can take any of the six tax benefits just listed unless he or she has a different qualifying child. If you and any other person can claim the child as a qualifying child, the following rules apply.
  • If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent.

  • If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents.

  • If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time in 2015. If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for 2015.

  • If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for 2015.

  • If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for 2015, but only if that person's AGI is higher than the highest AGI of any parent of the child who can claim the child.

Example.

Your daughter meets the conditions to be a qualifying child for both you and your mother. Your daughter doesn't meet the conditions to be a qualifying child of any other person, including her other parent. Under the rules just described, you can claim your daughter as a qualifying child for all of the six tax benefits just listed for which you otherwise qualify. Your mother can't claim any of those six tax benefits unless she has a different qualifying child. However, if your mother's AGI is higher than yours and you do not claim your daughter as a qualifying child, your daughter is the qualifying child of your mother.

  For more details and examples, see Pub. 501.

  If you will be claiming the child as a qualifying child, go to Step 2. Otherwise, stop; you can't claim any benefits based on this child.

Social security number.   You must enter each dependent's social security number (SSN). Be sure the name and SSN entered agree with the dependent's social security card. Otherwise, at the time we process your return, we may disallow the exemption claimed for the dependent and reduce or disallow any other tax benefits (such as the child tax credit) based on that dependent. If the name or SSN on the dependent's social security card isn't correct or you need to get an SSN for your dependent, contact the Social Security Administration. See Social Security Number (SSN), earlier. If your dependent won't have a number by the date your return is due, see What if You can't File on Time? earlier.

  If your dependent child was born and died in 2015 and you do not have an SSN for the child, enter “Died” in column (2) and include a copy of the child's birth certificate, death certificate, or hospital records. The document must show the child was born alive.

  If you didn't have an SSN (or ITIN) by the due date of your 2015 return (including extensions), you can't claim the child tax credit on either your original or an amended 2015 return, even if you later get an SSN (or ITIN). Also, no child tax credit is allowed on your original or an amended 2015 return with respect to a child who didn't have an SSN, ATIN, or ITIN by the due date of your return (including extensions), even if that child later gets one of those numbers. See the instructions for line 52.

Student.   A student is a child who during any part of 5 calendar months of 2015 was enrolled as a full-time student at a school, or took a full-time, on-farm training course given by a school or a state, county, or local government agency. A school includes a technical, trade, or mechanical school. It doesn't include an on-the-job training course, correspondence school, or school offering courses only through the Internet.

Income

Generally, you must report all income except income that is exempt from tax by law. For details, see the following instructions, especially the instructions for lines 7 through 21. Also see Pub. 525.

Foreign-Source Income

You must report unearned income, such as interest, dividends, and pensions, from sources outside the United States unless exempt by law or a tax treaty. You must also report earned income, such as wages and tips, from sources outside the United States.

If you worked abroad, you may be able to exclude part or all of your foreign earned income. For details, see Pub. 54 and Form 2555 or 2555-EZ.

Foreign retirement plans.   If you were a beneficiary of a foreign retirement plan, you may have to report the undistributed income earned in your plan. However, if you were the beneficiary of a Canadian registered retirement plan, see Revenue Procedure 2014-55, 2014-44 I.R.B. 753, available at www.irs.gov//irb/2014-44_IRB/ar10.html, to find out if you can elect to defer tax on the undistributed income.

  Report distributions from foreign pension plans on lines 16a and 16b.

Foreign accounts and trusts.   You must complete Part III of Schedule B if you:
  • Had a foreign account, or

  • Received a distribution from, or were a grantor of, or a transferor to, a foreign trust.

Foreign financial assets.   If you had foreign financial assets in 2015, you may have to file Form 8938. See Form 8938 and its instructions.

Chapter 11 Bankruptcy Cases

If you are a debtor in a chapter 11 bankruptcy case, income taxable to the bankruptcy estate and reported on the estate's income tax return includes:

  • Earnings from services you performed after the beginning of the case (both wages and self-employment income), and

  • Income from property described in section 541 of title 11 of the U.S. Code that you either owned when the case began or that you acquired after the case began and before the case was closed, dismissed, or converted to a case under a different chapter.

Because this income is taxable to the estate, do not include this income on your own individual income tax return. The only exception is for purposes of figuring your self-employment tax. For that purpose, you must take into account all your self-employment income for the year from services performed both before and after the beginning of the case. Also, you (or the trustee, if one is appointed) must allocate between you and the bankruptcy estate the wages, salary, or other compensation and withheld income tax reported to you on Form W-2. A similar allocation is required for income and withheld income tax reported to you on Forms 1099. You must also include a statement that indicates you filed a chapter 11 case and that explains how income and withheld income tax reported to you on Forms W-2 and 1099 are allocated between you and the estate. For more details, including acceptable allocation methods, see Notice 2006-83, 2006-40 I.R.B. 596, available at 
www.irs.gov/irb/2006-40_IRB/ar12.html.

Community Property States

Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. If you and your spouse lived in a community property state, you must usually follow state law to determine what is community income and what is separate income. For details, see Form 8958 and Pub. 555.

Nevada, Washington, and California domestic partners.   A registered domestic partner in Nevada, Washington, or California generally must report half the combined community income of the individual and his or her domestic partner. See Form 8958 and Pub. 555.

Rounding Off to Whole Dollars

You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.

Line 7

Wages, Salaries, Tips, etc.

Enter the total of your wages, salaries, tips, etc. If a joint return, also include your spouse's income. For most people, the amount to enter on this line should be shown in box 1 of their Form(s) W-2. But the following types of income must also be included in the total on line 7.

  • All wages received as a household employee for which you didn't receive a Form W-2 because an employer paid you less than $1,900 in 2015. Also, enter “HSH” and the total amount not reported on Form(s) W-2 on the dotted line next to line 7.

  • Tip income you didn't report to your employer. This should include any allocated tips shown in box 8 on your Form(s) W-2 unless you can prove that your unreported tips are less than the amount in box 8. Allocated tips aren't included as income in box 1. See Pub. 531 for more details. Also include the value of any noncash tips you received, such as tickets, passes, or other items of value. Although you do not report these noncash tips to your employer, you must report them on line 7.

You may owe social security and Medicare or railroad retirement (RRTA) tax on unreported tips. See the instructions for line 58.

  • Dependent care benefits, which should be shown in box 10 of your Form(s) W-2. But first complete Form 2441 to see if you can exclude part or all of the benefits.

  • Employer-provided adoption benefits, which should be shown in box 12 of your Form(s) W-2 with code T. But see the Instructions for Form 8839 to find out if you can exclude part or all of the benefits. You may also be able to exclude amounts if you adopted a child with special needs and the adoption became final in 2015.

  • Scholarship and fellowship grants not reported on Form W-2. Also, enter “SCH” and the amount on the dotted line next to line 7. However, if you were a degree candidate, include on line 7 only the amounts you used for expenses other than tuition and course-related expenses. For example, amounts used for room, board, and travel must be reported on line 7.

  • Excess salary deferrals. The amount deferred should be shown in box 12 of your Form W-2, and the “Retirement plan” box in box 13 should be checked. If the total amount you (or your spouse if filing jointly) deferred for 2015 under all plans was more than $18,000 (excluding catch-up contributions as explained later), include the excess on line 7. This limit is (a) $12,500 if you have only SIMPLE plans, or (b) $21,000 for section 403(b) plans if you qualify for the 15-year rule in Pub. 571. Although designated Roth contributions are subject to this limit, do not include the excess attributable to such contributions on line 7. They are already included as income in box 1 of your Form W-2.

A higher limit may apply to participants in section 457(b) deferred compensation plans for the 3 years before retirement age. Contact your plan administrator for more information.

If you were age 50 or older at the end of 2015, your employer may have allowed an additional deferral (catch-up contributions) of up to $6,000 ($3,000 for section 401(k)(11) and SIMPLE plans). This additional deferral amount isn't subject to the overall limit on elective deferrals.

You can't deduct the amount deferred. It isn't included as income in box 1 of your Form W-2.

  • Disability pensions shown on Form 1099-R if you have not reached the minimum retirement age set by your employer. But see Insurance Premiums for Retired Public Safety Officers in the instructions for lines 16a and 16b. Disability pensions received after you reach minimum retirement age and other payments shown on Form 1099-R (other than payments from an IRA*) are reported on lines 16a and 16b. Payments from an IRA are reported on lines 15a and 15b.

  • Corrective distributions from a retirement plan shown on Form 1099-R of excess salary deferrals and excess contributions (plus earnings). But do not include distributions from an IRA* on line 7. Instead, report distributions from an IRA on lines 15a and 15b.

  • Wages from Form 8919, line 6.

*This includes a Roth, SEP, or SIMPLE IRA.

Were You a Statutory Employee?

If you were, the “Statutory employee” box in box 13 of your Form W-2 should be checked. Statutory employees include full-time life insurance salespeople and certain agent or commission drivers, traveling salespeople, and homeworkers. If you have related business expenses to deduct, report the amount shown in box 1 of your Form W-2 on Schedule C or C-EZ along with your expenses.

Missing or Incorrect Form W-2?

Your employer is required to provide or send Form W-2 to you no later than  
February 1, 2016. If you do not receive it by early February, use Tax Topic 154 to find out what to do. Even if you do not get a Form W-2, you must still report your earnings on line 7. If you lose your Form W-2 or it is incorrect, ask your employer for a new one.

Line 8a

Taxable Interest

Each payer should send you a Form 1099-INT or Form 1099-OID. Enter your total taxable interest income on line 8a. But you must fill in and attach Schedule B if the total is over $1,500 or any of the other conditions listed at the beginning of the Schedule B instructions apply to you.

For more details about reporting taxable interest, including market discount on bonds, see Pub. 550.

Interest credited in 2015 on deposits that you couldn't withdraw because of the bankruptcy or insolvency of the financial institution may not have to be included in your 2015 income. For details, see Pub. 550.

If you get a 2015 Form 1099-INT for U.S. savings bond interest that includes amounts you reported before 2015, see Pub. 550.

Line 8b

Tax-Exempt Interest

If you received any tax-exempt interest, such as from municipal bonds, each payer should send you a Form 1099-INT. Your tax-exempt interest should be shown in box 8 of Form 1099-INT. Enter the total on line 8b. Also include on line 8b any exempt-interest dividends from a mutual fund or other regulated investment company. This amount should be shown in box 10 of Form 1099-DIV.

Do not include interest earned on your IRA, health savings account, Archer or Medicare Advantage MSA, or Coverdell education savings account.

Line 9a

Ordinary Dividends

Each payer should send you a Form 1099-DIV. Enter your total ordinary dividends on line 9a. This amount should be shown in box 1a of Form(s) 1099-DIV.

You must fill in and attach Schedule B if the total is over $1,500 or you received, as a nominee, ordinary dividends that actually belong to someone else.

Nondividend Distributions

Some distributions are a return of your cost (or other basis). They won't be taxed until you recover your cost (or other basis). You must reduce your cost (or other basis) by these distributions. After you get back all of your cost (or other basis), you must report these distributions as capital gains on Form 8949. For details, see Pub. 550.

Dividends on insurance policies are a partial return of the premiums you paid. Do not report them as dividends. Include them in income on line 21 only if they exceed the total of all net premiums you paid for the contract.

Line 9b

Qualified Dividends

Enter your total qualified dividends on  
line 9b. Qualified dividends are also included in the ordinary dividend total required to be shown on line 9a. Qualified dividends are eligible for a lower tax rate than other ordinary income. Generally, these dividends are shown in box 1b of Form(s) 1099-DIV. See Pub. 550 for the definition of qualified dividends if you received dividends not reported on Form 1099-DIV.

Exception.   Some dividends may be reported as qualified dividends in box 1b of Form 1099-DIV but aren't qualified dividends. These include:
  • Dividends you received as a nominee. See the Schedule B instructions.

  • Dividends you received on any share of stock that you held for less than 61 days during the 121-day period that began 60 days before the ex-dividend date. The ex-dividend date is the first date following the declaration of a dividend on which the purchaser of a stock isn't entitled to receive the next dividend payment. When counting the number of days you held the stock, include the day you disposed of the stock but not the day you acquired it. See the examples that follow. Also, when counting the number of days you held the stock, you can't count certain days during which your risk of loss was diminished. See Pub. 550 for more details.

  • Dividends attributable to periods totaling more than 366 days that you received on any share of preferred stock held for less than 91 days during the 181-day period that began 90 days before the ex-dividend date. When counting the number of days you held the stock, you can't count certain days during which your risk of loss was diminished. See Pub. 550 for more details. Preferred dividends attributable to periods totaling less than 367 days are subject to the 61-day holding period rule just described.

  • Dividends on any share of stock to the extent that you are under an obligation (including a short sale) to make related payments with respect to positions in substantially similar or related property.

  • Payments in lieu of dividends, but only if you know or have reason to know that the payments aren't qualified dividends.

Example 1.

You bought 5,000 shares of XYZ Corp. common stock on July 8, 2015. XYZ Corp. paid a cash dividend of 10 cents per share. The ex-dividend date was July 16, 2015. Your Form 1099-DIV from XYZ Corp. shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). However, you sold the 5,000 shares on August 11, 2015. You held your shares of XYZ Corp. for only 34 days of the 121-day period (from July 9, 2015, through August 11, 2015). The 121-day period began on May 17, 2015 (60 days before the ex-dividend date), and ended on September 14, 2015. You have no qualified dividends from XYZ Corp. because you held the XYZ stock for less than 61 days.

Example 2.

The facts are the same as in Example 1 except that you bought the stock on July 15, 2015 (the day before the ex-dividend date), and you sold the stock on September 16, 2015. You held the stock for 63 days (from July 16, 2015, through September 16, 2015). The $500 of qualified dividends shown in box 1b of Form 1099-DIV are all qualified dividends because you held the stock for 61 days of the 121-day period (from July 16, 2015, through September 14, 2015).

Example 3.

You bought 10,000 shares of ABC Mutual Fund common stock on July 8, 2015. ABC Mutual Fund paid a cash dividend of 10 cents a share. The ex-dividend date was July 16, 2015. The ABC Mutual Fund advises you that the part of the dividend eligible to be treated as qualified dividends equals 2 cents a share. Your Form 1099-DIV from ABC Mutual Fund shows total ordinary dividends of $1,000 and qualified dividends of $200. However, you sold the 10,000 shares on August 11, 2015. You have no qualified dividends from ABC Mutual Fund because you held the ABC Mutual Fund stock for less than 61 days.

Use the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet, whichever applies, to figure your tax. See the instructions for line 44 for details.

Line 10

Taxable Refunds, Credits, or Offsets of State and Local Income Taxes

None of your refund is taxable if, in the year you paid the tax, you either (a) didn't itemize deductions, or (b) elected to deduct state and local general sales taxes instead of state and local income taxes.

If you received a refund, credit, or offset of state or local income taxes in 2015, you may be required to report this amount. If you didn't receive a Form 1099-G, check with the government agency that made the payments to you. Your 2015 Form 1099-G may have been made available to you only in an electronic format, and you will need to get instructions from the agency to retrieve this document. Report any taxable refund you received even if you didn't receive Form 1099-G.

If you chose to apply part or all of the refund to your 2015 estimated state or local income tax, the amount applied is treated as received in 2015. If the refund was for a tax you paid in 2014 and you deducted state and local income taxes on line 5 of your 2014 Schedule A, use the State and Local Income Tax Refund Worksheet in these instructions to see if any of your refund is taxable.

Exception.   See Itemized Deduction Recoveries in Pub. 525 instead of using the State and Local Income Tax Refund Worksheet in these instructions if any of the following applies.
  1. You received a refund in 2015 that is for a tax year other than 2014.

  2. You received a refund other than an income tax refund, such as a general sales tax or real property tax refund, in 2015 of an amount deducted or credit claimed in an earlier year.

  3. The amount on your 2014 Form 1040, line 42, was more than the amount on your 2014 Form 1040, line 41.

  4. You had taxable income on your 2014 Form 1040, line 43, but no tax on your Form 1040, line 44, because of the 0% tax rate on net capital gain and qualified dividends in certain situations.

  5. Your 2014 state and local income tax refund is more than your 2014 state and local income tax deduction minus the amount you could have deducted as your 2014 state and local general sales taxes.

  6. You made your last payment of 2014 estimated state or local income tax in 2015.

  7. You owed alternative minimum tax in 2014.

  8. You couldn't use the full amount of credits you were entitled to in 2014 because the total credits were more than the amount shown on your 2014 Form 1040, line 47.

  9. You could be claimed as a dependent by someone else in 2014.

  10. You received a refund because of a jointly filed state or local income tax return, but you aren't filing a joint 2015 Form 1040 with the same person.

  11. You had to use the Itemized Deductions Worksheet in the 2014 Instructions for Schedule A and both of the following apply.

    1. You couldn't deduct all of the amount on the 2014 Itemized Deductions Worksheet, line 1.

    2. The amount on line 8 of that 2014 worksheet would be more than the amount on line 4 of that worksheet if the amount on line 4 were reduced by 80% of the refund you received in 2015.

Line 11

Alimony Received

Enter amounts received as alimony or separate maintenance. You must let the person who made the payments know your social security number. If you do not, you may have to pay a penalty. For more details, see Pub. 504.

State and Local Income Tax Refund Worksheet—Line 10

Before you begin:

  • Be sure you have read the Exception in the instructions for this line to see if you can use this worksheet instead of Pub. 525 to figure if any of your refund is taxable.

1.     Enter the income tax refund from Form(s) 1099-G (or similar statement). But do not enter more than the amount of your state and local income taxes shown on your 2014 Schedule A, line 5 1.    
2.     Enter your total itemized deductions from your 2014 Schedule A, line 29 2.      
     
  Note. If the filing status on your 2014 Form 1040 was married filing separately and your spouse itemized deductions in 2014, skip lines 3 through 5, enter the amount from line 2 on line 6, and go to line 7.    
3.     Enter the amount shown below for the filing status claimed on your  
2014 Form 1040.
   
   
  • Single or married filing separately—$6,200

  • Married filing jointly or qualifying widow(er)—$12,400

  • Head of household—$9,100

    3.      
4.     Did you fill in line 39a on your 2014 Form 1040?    
 
No.
Enter -0-.       4.      
 
Yes.
Multiply the number in the box on line 39a of your 2014 Form 1040 by $1,200 ($1,550 if your 2014 filing status was single or head of household).      
5.     Add lines 3 and 4 5.      
6.     Is the amount on line 5 less than the amount on line 2?    
 
No.
None of your refund is taxable.
         
 
Yes.
Subtract line 5 from line 2 6.    
7.     Taxable part of your refund. Enter the smaller of line 1 or line 6 here and on Form 1040, line 10 7.    
 

Line 12

Business Income or (Loss)

If you operated a business or practiced your profession as a sole proprietor, report your income and expenses on Schedule C or C-EZ.

Line 13

Capital Gain or (Loss)

If you sold a capital asset, such as a stock or bond, you must complete and attach Form 8949 and Schedule D.

Exception 1.   You do not have to file Form 8949 or Schedule D if both of the following apply.
  1. You have no capital losses, and your only capital gains are capital gain distributions from Form(s) 1099-DIV, box 2a (or substitute statements).

  2. None of the Form(s) 1099-DIV (or substitute statements) have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain).

Exception 2.   You must file Schedule D, but generally do not have to file Form 8949, if Exception 1 doesn't apply and your only capital gains and losses are:
  • Capital gain distributions,

  • A capital loss carryover from 2014,

  • A gain from Form 2439 or 6252 or Part I of Form 4797,

  • A gain or loss from Form 4684, 6781, or 8824,

  • A gain or loss from a partnership, S corporation, estate, or trust, or

  • Gains and losses from transactions for which you received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and for which you do not need to make any adjustments in column (g) of Form 8949 or enter any codes in column (f) of Form 8949.

  If Exception 1 applies, enter your total capital gain distributions (from box 2a of Form(s) 1099-DIV) on line 13 and check the box on that line. If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on line 13 only the amount that belongs to you. Include a statement showing the full amount you received and the amount you received as a nominee. See the Schedule B instructions for filing requirements for Forms 1099-DIV and 1096.

If you do not have to file Schedule D, use the Qualified Dividends and Capital Gain Tax Worksheet in the line 44 instructions to figure your tax.

Line 14

Other Gains or (Losses)

If you sold or exchanged assets used in a trade or business, see the Instructions for Form 4797.

Lines 15a and 15b

IRA Distributions

You should receive a Form 1099-R showing the total amount of any distribution from your IRA before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R. Unless otherwise noted in the line 15a and 15b instructions, an IRA includes a traditional IRA, Roth IRA (including a myRA), simplified employee pension (SEP) IRA, and a savings incentive match plan for employees (SIMPLE) IRA. Except as provided next, leave line 15a blank and enter the total distribution (from Form 1099-R, box 1) on line 15b.

Exception 1.   Enter the total distribution on line 15a if you rolled over part or all of the distribution from one:
  • IRA to another IRA of the same type (for example, from one traditional IRA to another traditional IRA),

  • SEP or SIMPLE IRA to a traditional IRA, or

  • IRA to a qualified plan other than an IRA.

  Also, enter “Rollover” next to line 15b. If the total distribution was rolled over in a qualified rollover, enter -0- on line 15b. If the total distribution wasn't rolled over in a qualified rollover, enter the part not rolled over on line 15b unless Exception 2 applies to the part not rolled over. Generally, a qualified rollover must be made within 60 days after the day you received the distribution. For more details on rollovers, see Pub. 590-A and Pub. 590-B.

  If you rolled over the distribution into a qualified plan other than an IRA or you made the rollover in 2016, include a statement explaining what you did.

Exception 2.   If any of the following apply, enter the total distribution on line 15a and see Form 8606 and its instructions to figure the amount to enter on line 15b.
  1. You received a distribution from an IRA (other than a Roth IRA) and you made nondeductible contributions to any of your traditional or SEP IRAs for 2015 or an earlier year. If you made nondeductible contributions to these IRAs for 2015, also see Pub. 590-A and Pub. 590-B.

  2. You received a distribution from a Roth IRA. But if either (a) or (b) below applies, enter -0- on line 15b; you do not have to see Form 8606 or its instructions.

    1. Distribution code T is shown in box 7 of Form 1099-R and you made a contribution (including a conversion) to a Roth IRA for 2010 or an earlier year.

    2. Distribution code Q is shown in box 7 of Form 1099-R.

  3. You converted part or all of a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2015.

  4. You had a 2014 or 2015 IRA contribution returned to you, with the related earnings or less any loss, by the due date (including extensions) of your tax return for that year.

  5. You made excess contributions to your IRA for an earlier year and had them returned to you in 2015.

  6. You recharacterized part or all of a contribution to a Roth IRA as a traditional IRA contribution, or vice versa.

Exception 3.   If the distribution is a qualified charitable distribution (QCD), enter the total distribution on line 15a. If the total amount distributed is a QCD, enter -0- on line 15b. If only part of the distribution is a QCD, enter the part that is not a QCD on line 15b unless Exception 2 applies to that part. Enter “QCD” next to line 15b.

  A QCD is a distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions (with certain exceptions). You must have been at least age 70½ when the distribution was made.

  Generally, your total QCDs for the year can't be more than $100,000. (On a joint return, your spouse can also have a QCD of up to $100,000.) The amount of the QCD is limited to the amount that would otherwise be included in your income. If your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income. See Pub. 590-A for details.

  
You can't claim a charitable contribution deduction for any QCD not included in your income.

Exception 4.   If the distribution is a health savings account (HSA) funding distribution (HFD), enter the total distribution on line 15a. If the total amount distributed is an HFD and you elect to exclude it from income, enter -0- on line 15b. If only part of the distribution is an HFD and you elect to exclude that part from income, enter the part that isn't an HFD on line 15b unless Exception 2 applies to that part. Enter “HFD” next to line 15b.

   An HFD is a distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to your HSA. If eligible, you generally can elect to exclude an HFD from your income once in your lifetime. You can't exclude more than the limit on HSA contributions or more than the amount that would otherwise be included in your income. If your IRA includes nondeductible contributions, the HFD is first considered to be paid out of otherwise taxable income. See Pub. 969 for details.

  
The amount of an HFD reduces the amount you can contribute to your HSA for the year. If you fail to maintain eligibility for an HSA for the 12 months following the month of the HFD, you may have to report the HFD as income and pay an additional tax. See Form 8889, Part III.

More than one exception applies.   If more than one exception applies, include a statement showing the amount of each exception, instead of making an entry next to line 15b. For example: “Line 15b – $1,000 Rollover and $500 HFD.” But you do not need to attach a statement if only Exception 2 and one other exception apply.

More than one distribution.   If you (or your spouse if filing jointly) received more than one distribution, figure the taxable amount of each distribution and enter the total of the taxable amounts on line 15b. Enter the total amount of those distributions on line 15a.

You may have to pay an additional tax if (a) you received an early distribution from your IRA and the total wasn't rolled over, or (b) you were born before July 1, 1944, and received less than the minimum required distribution from your traditional, SEP, and SIMPLE IRAs. See the instructions for line 59 for details.

More information.   For more information about IRAs, see Pub. 590-A and Pub. 590-B.

Lines 16a and 16b

Pensions and Annuities

You should receive a Form 1099-R showing the total amount of your pension and annuity payments before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R. Pension and annuity payments include distributions from 401(k), 403(b), and governmental 457(b) plans. Rollovers and lump-sum distributions are explained later. Do not include the following payments on lines 16a and 16b. Instead, report them on line 7.

  • Disability pensions received before you reach the minimum retirement age set by your employer.

  • Corrective distributions (including any earnings) of excess salary deferrals or excess contributions to retirement plans. The plan must advise you of the year(s) the distributions are includible in income.

Attach Form(s) 1099-R to  
Form 1040 if any federal 
income tax was withheld.

Fully Taxable Pensions and Annuities

Your payments are fully taxable if (a) you didn't contribute to the cost (see Cost, later) of your pension or annuity, or (b) you got your entire cost back tax free before 2015. But see Insurance Premiums for Retired Public Safety Officers, later. If your pension or annuity is fully taxable, enter the total pension or annuity payments (from Form(s) 1099-R, box 1) on line 16b; do not make an entry on line 16a.

Fully taxable pensions and annuities also include military retirement pay shown on Form 1099-R. For details on military disability pensions, see Pub. 525. If you received a Form RRB-1099-R, see Pub. 575 to find out how to report your benefits.

Partially Taxable Pensions and Annuities

Enter the total pension or annuity payments (from Form 1099-R, box 1) on line 16a. If your Form 1099-R doesn't show the taxable amount, you must use the General Rule explained in Pub. 939 to figure the taxable part to enter on line 16b. But if your annuity starting date (defined later) was after July 1, 1986, see Simplified Method, later, to find out if you must use that method to figure the taxable part.

You can ask the IRS to figure the taxable part for you for a $1,000 fee. For details, see Pub. 939.

If your Form 1099-R shows a taxable amount, you can report that amount on  
line 16b. But you may be able to report a lower taxable amount by using the General Rule or the Simplified Method or if the exclusion for retired public safety officers, discussed next, applies.

Insurance Premiums for Retired Public Safety Officers

If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for coverage by an accident or health plan or a long-term care insurance contract. You can do this only if you retired because of disability or because you reached normal retirement age. The premiums can be for coverage for you, your spouse, or dependents. The distribution must be from a plan maintained by the employer from which you retired as a public safety officer. Also, the distribution must be made directly from the plan to the provider of the accident or health plan or long-term care insurance contract. You can exclude from income the smaller of the amount of the premiums or $3,000. You can make this election only for amounts that would otherwise be included in your income.

An eligible retirement plan is a governmental plan that is a qualified trust or a section 403(a), 403(b), or 457(b) plan.

If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. The amount shown in box 2a of Form 1099-R doesn't reflect the exclusion. Report your total distributions on line 16a and the taxable amount on line 16b. Enter “PSO” next to line 16b.

Simplified Method Worksheet—Lines 16a and 16b

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Simplified Method Worksheet-Lines 16a and 16b

If you are retired on disability and reporting your disability pension on line 7, include only the taxable amount on that line and enter “PSO” and the amount excluded on the dotted line next to line 7.

Simplified Method

You must use the Simplified Method if either of the following applies.

  1. Your annuity starting date was after July 1, 1986, and you used this method last year to figure the taxable part.

  2. Your annuity starting date was after November 18, 1996, and both of the following apply.

    1. The payments are from a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity.

    2. On your annuity starting date, either you were under age 75 or the number of years of guaranteed payments was fewer than 5. See Pub. 575 for the definition of guaranteed payments.

If you must use the Simplified Method, complete the Simplified Method Worksheet in these instructions to figure the taxable part of your pension or annuity. For more details on the Simplified Method, see Pub. 575 (or Pub. 721 for U.S. Civil Service retirement benefits).

If you received U.S. Civil Service retirement benefits and you chose the alternative annuity option, see Pub. 721 to figure the taxable part of your annuity. Do not use the Simplified Method Worksheet in these instructions.

Annuity Starting Date

Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan's obligations became fixed.

Age (or Combined Ages) at Annuity Starting Date

If you are the retiree, use your age on the annuity starting date. If you are the survivor of a retiree, use the retiree's age on his or her annuity starting date. But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, use your combined ages on the annuity starting date.

If you are the beneficiary of an employee who died, see Pub. 575. If there is more than one beneficiary, see Pub. 575 or Pub. 721 to figure each beneficiary's taxable amount.

Cost

Your cost is generally your net investment in the plan as of the annuity starting date. It doesn't include pre-tax contributions. Your net investment should be shown in box 9b of Form 1099-R for the first year you received payments from the plan.

Rollovers

Generally, a qualified rollover is a tax-free distribution of cash or other assets from one retirement plan that is contributed to another plan within 60 days of receiving the distribution. However, a qualified rollover to a Roth IRA or a designated Roth account is generally not a tax-free distribution. Use lines 16a and 16b to report a qualified rollover, including a direct rollover, from one qualified employer's plan to another or to an IRA or SEP.

Enter on line 16a the distribution from Form 1099-R, box 1. From this amount, subtract any contributions (usually shown in box 5) that were taxable to you when made. From that result, subtract the amount of the qualified rollover. Enter the remaining amount on line 16b. If the remaining amount is zero and you have no other distribution to report on line 16b, enter zero on line 16b. Also, enter "Rollover" next to line 16b.

See Pub. 575 for more details on rollovers, including special rules that apply to rollovers from designated Roth accounts, partial rollovers of property, and distributions under qualified domestic relations orders.

Lump-Sum Distributions

If you received a lump-sum distribution from a profit-sharing or retirement plan, your Form 1099-R should have the "Total distribution" box in box 2b checked. You may owe an additional tax if you received an early distribution from a qualified retirement plan and the total amount wasn't rolled over in a qualified rollover. For details, see the instructions for line 59.

Enter the total distribution on line 16a and the taxable part on line 16b. For details, see Pub 575.

If you or the plan participant was born before January 2, 1936, you could pay less tax on the distribution. See Form 4972.

Line 19

Unemployment Compensation

You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you in 2015. Report this amount on line 19. However, if you made contributions to a governmental unemployment compensation program or to a governmental paid family leave program and you aren't itemizing deductions, reduce the amount you report on line 19 by those contributions. If you are itemizing deductions, see the instructions on Form 1099-G.

If you received an overpayment of unemployment compensation in 2015 and you repaid any of it in 2015, subtract the amount you repaid from the total amount you received. Enter the result on line 19. Also, enter “Repaid” and the amount you repaid on the dotted line next to line 19. If, in 2015, you repaid unemployment compensation that you included in gross income in an earlier year, you can deduct the amount repaid on Schedule A, line 23. But if you repaid more than $3,000, see Repayments in Pub. 525 for details on how to report the repayment.

Lines 20a and 20b

Social Security Benefits

You should receive a Form SSA-1099 showing in box 3 the total social security benefits paid to you. Box 4 will show the amount of any benefits you repaid in 2015. If you received railroad retirement benefits treated as social security, you should receive a Form RRB-1099.

Use the Social Security Benefits Worksheet in these instructions to see if any of your benefits are taxable.

Exception.   Do not use the Social Security Benefits Worksheet in these instructions if any of the following applies.
  • You made contributions to a traditional IRA for 2015 and you or your spouse were covered by a retirement plan at work or through self-employment. Instead, use the worksheets in Pub. 590-A to see if any of your social security benefits are taxable and to figure your IRA deduction.

  • You repaid any benefits in 2015 and your total repayments (box 4) were more than your total benefits for 2015 (box 3). None of your benefits are taxable for 2015. Also, you may be able to take an itemized deduction or a credit for part of the excess repayments if they were for benefits you included in gross income in an earlier year. For more details, see Pub. 915.

  • You file Form 2555, 2555-EZ, 4563, or 8815, or you exclude employer-provided adoption benefits or income from sources within Puerto Rico. Instead, use the worksheet in Pub. 915.

Benefits for earlier year received in 2015? If any of your benefits are taxable for 2015 and they include a lump-sum benefit payment that was for an earlier year, you may be able to reduce the taxable amount. See Lump-Sum Election in Pub. 915 for details.

Social security information.   Social security beneficiaries can now get a variety of information from the SSA website with a my Social Security account, including getting a replacement Form SSA‐1099 if needed. For more information and to set up an account, go to www.socialsecurity.gov/myaccount.

Form RRB-1099.   If you need a replacement Form RRB-1099, call the Railroad Retirement Board at 1-877-772-5772 or go to www.rrb.gov.

Social Security Benefits Worksheet—Lines 20a and 20b

Before you begin:

  • Complete Form 1040, lines 21 and 23 through 32, if they apply to you.

  • Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36).

  • If you are married filing separately and you lived apart from your spouse for all of 2015, enter “D” to the right of the word “benefits” on line 20a. If you do not, you may get a math error notice from the IRS.

  • Be sure you have read the Exception in the line 20a and 20b instructions to see if you can use this worksheet instead of a publication to find out if any of your benefits are taxable.

   
1.   Enter the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099. Also, enter this amount on Form 1040, line 20a 1.        
2.   Multiply line 1 by 50% (0.50) 2.      
3.   Combine the amounts from Form 1040, lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 3.      
4.   Enter the amount, if any, from Form 1040, line 8b 4.      
5.   Combine lines 2, 3, and 4 5.      
6.   Enter the total of the amounts from Form 1040, lines 23 through 32, plus any write-in adjustments you entered on the dotted line next to line 36 6.      
7.   Is the amount on line 6 less than the amount on line 5?    
   
No.
None of your social security benefits are taxable. Enter -0- on Form 1040, line 20b.        
   
Yes. Subtract line 6 from line 5 7.      
8.   If you are:
  • Married filing jointly, enter $32,000

  • Single, head of household, qualifying widow(er), or married filing  
    separately and you lived apart from your spouse for all of 2015, 
    enter $25,000

  8.      
   
  • Married filing separately and you lived with your spouse at any time 
    in 2015, skip lines 8 through 15; multiply line 7 by 85% (0.85) and  
    enter the result on line 16. Then go to line 17

   
9.   Is the amount on line 8 less than the amount on line 7?    
   
No.
None of your social security benefits are taxable. Enter -0- on Form 1040, line 20b. If you are married filing separately and you lived apart from your spouse for all of 2015, be sure you entered “D” to the right of the word “benefits” on line 20a.    
   
Yes. Subtract line 8 from line 7 9.      
10.   Enter: $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2015 10.      
11.   Subtract line 10 from line 9. If zero or less, enter -0- 11.      
12.   Enter the smaller of line 9 or line 10 12.      
13.   Enter one-half of line 12 13.      
14.   Enter the smaller of line 2 or line 13 14.      
15.   Multiply line 11 by 85% (0.85). If line 11 is zero, enter -0- 15.      
16.   Add lines 14 and 15 16.      
17.   Multiply line 1 by 85% (0.85) 17.      
18.   Taxable social security benefits. Enter the smaller of line 16 or line 17. Also enter this amount on Form 1040, line 20b 18.      
If any of your benefits are taxable for 2015 and they include a lump-sum benefit payment that was for an earlier year, you may be able to reduce the taxable amount. See Lump-Sum Election in Pub. 915 for details.  

Line 21

Other Income

Do not report on this line any income from self-employment or fees received as a notary public. Instead, you must use Schedule C, C-EZ, or F, even if you do not have any business expenses. Also, do not report on line 21 any nonemployee compensation shown on Form 1099-MISC (unless it isn't self-employment income, such as income from a hobby or a sporadic activity). Instead, see the instructions on Form 1099-MISC to find out where to report that income.

Taxable income.   Use line 21 to report any taxable income not reported elsewhere on your return or other schedules. List the type and amount of income. If necessary, include a statement showing the required information. For more details, see Miscellaneous Income in Pub. 525.

  Examples of income to report on line 21 include the following.
  • Most prizes and awards.

  • Jury duty pay. Also see the instructions for line 36.

  • Alaska Permanent Fund dividends.

  • Reimbursements or other amounts received for items deducted in an earlier year, such as medical expenses, real estate taxes, general sales taxes, or home mortgage interest. See Recoveries in Pub. 525 for details on how to figure the amount to report.

  • Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property. Also see the instructions for line 36.

  • Income from an activity not engaged in for profit. See Pub. 535.

  

Attach Form(s) W-2G to  
Form 1040 if any federal income tax was withheld.

You may have to pay an additional tax if you received a taxable distribution from a Coverdell ESA or a QTP. See the Instructions for Form 5329.

You may have to pay an additional tax if you received a taxable distribution from an HSA or an Archer MSA. See the Instructions for Form 8889 for HSAs or the Instructions for Form 8853 for Archer MSAs.

You may have to pay an additional tax if you received a taxable distribution from an ABLE account. See the Instructions for Form 5329.

  • Amounts deemed to be income from a health savings account (HSA) because you didn't remain an eligible individual during the testing period. See Form 8889, Part III.

  • Gambling winnings, including lotteries, raffles, a lump-sum payment from the sale of a right to receive future lottery payments, etc. For details on gambling losses, see the instructions for Schedule A, line 28.

  • Reemployment trade adjustment assistance (RTAA) payments. These payments should be shown in box 5 of Form 1099-G.

  • Loss on certain corrective distributions of excess deferrals. See Retirement Plan Contributions in Pub. 525.

  • Dividends on insurance policies if they exceed the total of all net premiums you paid for the contract.

  • Recapture of a charitable contribution deduction relating to the contribution of a fractional interest in tangible personal property. See Fractional Interest in Tangible Personal Property in Pub. 526. Interest and an additional 10% tax apply to the amount of the recapture. See the instructions for line 62.

  • Recapture of a charitable contribution deduction if the charitable organization disposes of the donated property within 3 years of the contribution. See Recapture if no exempt use in Pub. 526.

  • Canceled debts. These amounts may be shown in box 2 of Form 1099-C. However, part or all of your income from the cancellation of debt may be nontaxable. See Pub. 4681 or go to IRS.gov and enter “canceled debt” or “foreclosure” in the search box.

  • Taxable part of disaster relief payments. See Pub. 525 to figure the taxable part, if any. If any of your disaster relief payment is taxable, attach a statement showing the total payment received and how you figured the taxable part.

  • Taxable distributions from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). Distributions from these accounts may be taxable if (a) they are more than the qualified higher education expenses of the designated beneficiary in 2015, and (b) they were not included in a qualified rollover. See Pub. 970. Nontaxable distributions from these accounts, including rollovers, do not have to be reported on Form 1040.

  • Taxable distributions from a health savings account (HSA) or an Archer MSA. Distributions from these accounts may be taxable if (a) they are more than the unreimbursed qualified medical expenses of the account beneficiary or account holder in 2015, and (b) they were not included in a qualified rollover. See Pub. 969.

  • Taxable distributions from an ABLE account. Distributions from this type of account may be taxable if (a) they are more than the designated beneficiary's qualified disability expenses, and (b) they were not included in a qualified rollover. Enter “ABLE” and the taxable amount on the dotted line next to line 21. See Pub. 907 for more information.

Nontaxable income.   Do not report any nontaxable income on line 21. Examples of nontaxable income include the following.
  • Child support.

  • Payments you received to help you pay your mortgage loan under the HFA Hardest Hit Fund or the Emergency Homeowners' Loan Program or similar state program.

  • Any Pay-for-Performance Success Payments that reduce the principal balance of your home mortgage under the Home Affordable Modification Program.

  • Life insurance proceeds received because of someone's death (other than from certain employer-owned life insurance contracts).

  • Gifts and bequests. However, if you received a gift or bequest from a foreign person of more than $15,601, you may have to report information about it on Form 3520, Part IV. See the Instructions for Form 3520.

Net operating loss (NOL) deduction.   Include on line 21 any NOL deduction from an earlier year. Subtract it from any income on line 21 and enter the result. If the result is less than zero, enter it in parentheses. On the dotted line next to line 21, enter “NOL” and show the amount of the deduction in parentheses. See Pub. 536 for details.

Medicaid waiver payments to care provider.   Certain Medicaid waiver payments you received for caring for someone living in your home with you may be nontaxable. If these payments were incorrectly reported to you in box 1 of Form(s) W-2, and you can't get a corrected Form W-2, include the amount on line 7. On line 21, subtract the nontaxable amount of the payments from any income on line 21 and enter the result. If the result is less than zero, enter it in parentheses. Enter “Notice 2014-7” and the nontaxable amount on the dotted line next to line 21. For more information about these payments, see Pub. 525.

Adjusted Gross Income

Line 23

Educator Expenses

If you were an eligible educator in 2015, you can deduct on line 23 up to $250 of qualified expenses you paid in 2015. If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. However, neither spouse can deduct more than $250 of his or her qualified expenses on line 23. You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A, line 21. An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year.

Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your profession as an educator. An expense does not have to be required to be considered necessary.

Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education.

You must reduce your qualified expenses by the following amounts.

  • Excludable U.S. series EE and I savings bond interest from Form 8815.

  • Nontaxable qualified tuition program earnings or distributions.

  • Any nontaxable distribution of Coverdell education savings account earnings.

  • Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2.

For more details, use Tax Topic 458 or see Pub. 529.

Line 24

Certain Business Expenses of Reservists, Performing Artists, and Fee-Basis Government Officials

Include the following deductions on  
line 24.

  • Certain business expenses of National Guard and reserve members who traveled more than 100 miles from home to perform services as a National Guard or reserve member.

  • Performing-arts-related expenses as a qualified performing artist.

  • Business expenses of fee-basis state or local government officials.

For more details, see Form 2106 or 2106-EZ.

Line 25

Health Savings Account (HSA) Deduction

You may be able to take this deduction if contributions (other than employer contributions, rollovers, and qualified HSA funding distributions from an IRA) were made to your HSA for 2015. See Form 8889.

Line 26

Moving Expenses

If you moved in connection with your job or business or started a new job, you may be able to take this deduction. But your new workplace must be at least 50 miles farther from your old home than your old home was from your old workplace. If you had no former workplace, your new workplace must be at least 50 miles from your old home. Use Tax Topic 455 or see Form 3903.

Line 27

Deductible Part of Self-Employment Tax

If you were self-employed and owe self-employment tax, fill in Schedule SE to figure the amount of your deduction. If you completed Section A of Schedule SE, the deductible part of your self-employment tax is on line 6. If you completed Section B of Schedule SE, it is on line 13.

Line 28

Self-Employed SEP, SIMPLE, and Qualified Plans

If you were self-employed or a partner, you may be able to take this deduction. See Pub. 560 or, if you were a minister, Pub. 517.

Line 29

Self-Employed Health Insurance Deduction

You may be able to deduct the amount you paid for health insurance for yourself, your spouse, and your dependents. The insurance can also cover your child who was under age 27 at the end of 2015, even if the child wasn't your dependent. A child includes your son, daughter, stepchild, adopted child, or foster child (defined in the line 6c instructions).

Self-Employed Health Insurance Deduction Worksheet—Line 29

Before you begin:

  • If, during 2015, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation pension payee, do not include on line 1 of this worksheet any amounts you included on Form 8885, line 4.

  • Be sure you have read the Exceptions in the instructions for this line to see if you can use this worksheet instead of Pub. 535 to figure your deduction.

1. Enter the total amount paid in 2015 for health insurance coverage established under your business      
  (or the S corporation in which you were a more-than-2% shareholder) for 2015 for you, your spouse, and your dependents. Your insurance can also cover your child who was under age 27 at the end of 2015, even if the child wasn't your dependent. But do not include amounts for any month you were eligible to participate in an employer-sponsored health plan or amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer 1.    
2. Enter your net profit* and any other earned income** from the business under which the insurance plan is established, minus any deductions on Form 1040, lines 27 and 28. Do not include Conservation Reserve Program payments exempt from self-employment tax 2.    
3. Self-employed health insurance deduction. Enter the smaller of line 1 or line 2 here and on  
Form 1040, line 29. Do not include this amount in figuring any medical expense deduction on Schedule A
3.    
*If you used either optional method to figure your net earnings from self-employment, do not enter your net profit. Instead, enter the amount from Schedule SE, Section B, line 4b.  
**Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. However, it doesn't include capital gain income. If you were a more-than-2% shareholder in the S corporation under which the insurance plan is established, earned income is your Medicare wages (box 5 of Form W-2) from that corporation.

One of the following statements must be true.

  • You were self-employed and had a net profit for the year reported on Schedule C, C-EZ, or F.

  • You were a partner with net earnings from self-employment.

  • You used one of the optional methods to figure your net earnings from self-employment on Schedule SE.

  • You received wages in 2015 from an S corporation in which you were a more-than-2% shareholder. Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2.

The insurance plan must be established under your business. Your personal services must have been a material income-producing factor in the business. If you are filing Schedule C, C-EZ, or F, the policy can be either in your name or in the name of the business.

If you are a partner, the policy can be either in your name or in the name of the partnership. You can either pay the premiums yourself or your partnership can pay them and report them as guaranteed payments. If the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premiums as guaranteed payments.

If you are a more-than-2% shareholder in an S corporation, the policy can be either in your name or in the name of the S corporation. You can either pay the premiums yourself or the S corporation can pay them and report them as wages. If the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you. You can deduct the premiums only if the S corporation reports the premiums paid or reimbursed as wages in box 1 of your Form W-2 in 2015 and you also report the premium payments or reimbursements as wages on Form 1040, line 7.

But if you were also eligible to participate in any subsidized health plan maintained by your or your spouse's employer for any month or part of a month in 2015, amounts paid for health insurance coverage for that month can't be used to figure the deduction. Also, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2015, do not use amounts paid for coverage for that month to figure the deduction.

Example.

If you were eligible to participate in a subsidized health plan maintained by your spouse's employer from September 30 through December 31, you can't use amounts paid for health insurance coverage for September through December to figure your deduction.

Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer can't be used to figure the deduction.

For more details, see Pub. 535.

If you qualify to take the deduction, use the Self-Employed Health Insurance Deduction Worksheet to figure the amount you can deduct.

Exceptions.   Use Pub. 535 instead of the Self-Employed Health Insurance Deduction Worksheet in these instructions to figure your deduction if any of the following applies.
  • You had more than one source of income subject to self-employment tax.

  • You file Form 2555 or 2555-EZ.

  • You are using amounts paid for qualified long-term care insurance to figure the deduction.

  Use Pub. 974 instead of the worksheet in these instructions if the insurance plan established, or considered to be established, under your business was obtained through the Marketplace and you are claiming the premium tax credit.

Line 30

Penalty on Early Withdrawal of Savings

The Form 1099-INT or Form 1099-OID you received will show the amount of any penalty you were charged.

Lines 31a and 31b

Alimony Paid

If you made payments to or for your spouse or former spouse under a divorce or separation instrument, you may be able to take this deduction. Use Tax Topic 452 or see Pub. 504.

Line 32

IRA Deduction

If you made any nondeductible contributions to a traditional individual retirement arrangement (IRA) for 2015, you must report them on Form 8606.

If you made contributions to a traditional IRA for 2015, you may be able to take an IRA deduction. But you, or your spouse if filing a joint return, must have had earned income to do so. For IRA purposes, earned income includes alimony and separate maintenance payments reported on line 11. If you were a member of the U.S. Armed Forces, earned income includes any nontaxable combat pay you received. If you were self-employed, earned income is generally your net earnings from self-employment if your personal services were a material income-producing factor. For more details, see Pub. 590-A. A statement should be sent to you by May 31, 2016, that shows all contributions to your traditional IRA for 2015.

Use the IRA Deduction Worksheet to figure the amount, if any, of your IRA deduction. But read the following 11-item list before you fill in the worksheet.

  1. If you were age 70½ or older at the end of 2015, you can't deduct any contributions made to your traditional IRA for 2015 or treat them as nondeductible contributions.

  2. You can't deduct contributions to a Roth IRA. But you may be able to take the retirement savings contributions credit (saver's credit). See the instructions for line 51.

  3. If you are filing a joint return and you or your spouse made contributions to both a traditional IRA and a Roth IRA for 2015, do not use the IRA Deduction Worksheet in these instructions. Instead, see Pub. 590-A to figure the amount, if any, of your IRA deduction.

  4. You can't deduct elective deferrals to a 401(k) plan, 403(b) plan, section 457 plan, SIMPLE plan, or the federal Thrift Savings Plan. These amounts aren't included as income in box 1 of your Form W-2. But you may be able to take the retirement savings contributions credit. See the instructions for line 51.

  5. If you made contributions to your IRA in 2015 that you deducted for 2014, do not include them in the worksheet.

  6. If you received income from a nonqualified deferred compensation plan or nongovernmental section 457 plan that is included in box 1 of your Form W-2, or in box 7 of Form 1099-MISC, do not include that income on line 8 of the worksheet. The income should be shown in (a) box 11 of your Form W-2, (b) box 12 of your Form W-2 with code Z, or (c) box 15b of Form 1099-MISC. If it isn't, contact your employer or the payer for the amount of the income.

  7. You must file a joint return to deduct contributions to your spouse's IRA. Enter the total IRA deduction for you and your spouse on line 32.

  8. Do not include qualified rollover contributions in figuring your deduction. Instead, see the instructions for lines 15a and 15b.

  9. Do not include trustees' fees that were billed separately and paid by you for your IRA. These fees can be deducted only as an itemized deduction on Schedule A.

  10. Do not include any repayments of qualified reservist distributions. You can't deduct them. For information on how to report these repayments, see Qualified reservist repayments in Pub. 590-A.

  11. If the total of your IRA deduction on line 32 plus any nondeductible contribution to your traditional IRAs shown on Form 8606 is less than your total traditional IRA contributions for 2015, see Pub. 590-A for special rules.

By April 1 of the year after the year in which you turn age  
70½, you must start taking minimum required distributions from your traditional IRA. If you do not, you may have to pay a 50% additional tax on the amount that should have been distributed. For details, including how to figure the minimum required distribution, see Pub. 590-B.

Were You Covered by a Retirement Plan?

If you were covered by a retirement plan (qualified pension, profit-sharing (including 401(k)), annuity, SEP, SIMPLE, etc.) at work or through self-employment, your IRA deduction may be reduced or eliminated. But you can still make contributions to an IRA even if you can't deduct them. In any case, the income earned on your IRA contributions isn't taxed until it is paid to you.

The “Retirement plan” box in box 13 of your Form W-2 should be checked if you were covered by a plan at work even if you were not vested in the plan. You are also covered by a plan if you were self-employed and had a SEP, SIMPLE, or qualified retirement plan.

If you were covered by a retirement plan and you file Form 2555, 2555-EZ, or 8815, or you exclude employer-provided adoption benefits, see Pub. 590-A to figure the amount, if any, of your IRA deduction.

Married persons filing separately.   If you were not covered by a retirement plan but your spouse was, you are considered covered by a plan unless you lived apart from your spouse for all of 2015.

You may be able to take the retirement savings contributions credit. See the line 51 instructions.

IRA Deduction Worksheet—Line 32

If you were age 70½ or older at the end of 2015, you can't deduct any contributions made to your traditional IRA or treat them as nondeductible contributions. Do not complete this worksheet for anyone age 70½ or older at the end of 2015. If you are married filing jointly and only one spouse was under age 70½ at the end of 2015, complete this worksheet only for that spouse.

Before you begin:

  • Be sure you have read the 11-item list in the instructions for this line. You may not be able to use this worksheet.

  • Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36).

  • If you are married filing separately and you lived apart from your spouse for all of 2015, enter “D” on the dotted line next to Form 1040, line 32. If you do not, you may get a math error notice from the IRS.

  Your IRA Spouse's IRA  
1a.   Were you covered by a retirement plan (see Were You Covered by a Retirement Plan?)? 1a.  
Yes
No
   
b.   If married filing jointly, was your spouse covered by a retirement plan? 1b.  
Yes
No
 
  Next. If you checked “No” on line 1a (and “No” on line 1b if married filing jointly), skip lines 2 through 6, enter the applicable amount below on line 7a (and line 7b if applicable), and go to line 8.
  • $5,500, if under age 50 at the end of 2015.

  • $6,500, if age 50 or older but under age 70½ at the end of 2015.

Otherwise, go to line 2.
   
2.   Enter the amount shown below that applies to you.    
 
  • Single, head of household, or married filing separately and you lived apart 
    from your spouse for all of 2015, enter $71,000.

   
 
  • Qualifying widow(er), enter $118,000.

  2a.     2b.      
 
  • Married filing jointly, enter $118,000 in both columns. But if you checked 
    No” on either line 1a or 1b, enter $193,000 for the person who wasn't  
    covered by a plan.

  • Married filing separately and you lived with your spouse at any time in  
    2015, enter $10,000.

   
3.   Enter the amount from Form 1040, line 22 3.        
4.   Enter the total of the amounts from Form 1040, lines 23 through 31a, plus any write-in adjustments you entered on the dotted line next to line 36 4.        
5.   Subtract line 4 from line 3. If married filing jointly, enter the result in both columns 5a.     5b.      
6.   Is the amount on line 5 less than the amount on line 2?    
   
No.
None of your IRA contributions are deductible. For details on nondeductible IRA contributions, see Form 8606.    
   
Yes.
Subtract line 5 from line 2 in each column. Follow the instruction below that applies to you.    
     
  • If single, head of household, or married filing separately,  
    and the result is $10,000 or more, enter the applicable  
    amount below on line 7 for that column and go to line 8. 
    i. $5,500, if under age 50 at the end of 2015. 
    ii. $6,500, if age 50 or older but under age 70½ at the  
    end of 2015.  
    If the result is less than $10,000, go to line 7.

  6a.     6b.      
     
  • If married filing jointly or qualifying widow(er), and the  
    result is $20,000 or more ($10,000 or more in the column  
    for the IRA of a person who wasn't covered by a  
    retirement plan), enter the applicable amount below on  
    line 7 for that column and go to line 8. 
    i. $5,500, if under age 50 at the end of 2015. 
    ii. $6,500 if age 50 or older but under age 70½ at the  
    end of 2015.  
    Otherwise, go to line 7.

   

IRA Deduction Worksheet—Continued

          Your IRA Spouse's IRA  
7.   Multiply lines 6a and 6b by the percentage below that applies to you. If the result isn't a multiple of $10, increase it to the next multiple of $10 (for example, increase $490.30 to $500). If the result is $200 or more, enter the result. But if it is less than $200, enter $200.    
 
  • Single, head of household, or married filing separately, multiply by 55%  
    (0.55) (or by 65% (0.65) in the column for the IRA of a person who is age  
    50 or older at the end of 2015).

               
 
  • Married filing jointly or qualifying widow(er), multiply by 27.5% (0.275) 
    (or by 32.5% (0.325) in the column for the IRA of a person who is age 50 or  
    older at the end of 2015). But if you checked “No” on either line 1a  
    or 1b, then in the column for the IRA of the person who wasn't covered by a  
    retirement plan, multiply by 55% (0.55) (or by 65% (0.65) if age 50 or  
    older at the end of 2015).

  7a.     7b.      
   
8.   Enter the total of your (and your spouse's if filing jointly):          
 
  • Wages, salaries, tips, etc. Generally, this is the  
    amount reported in box 1 of Form W-2. Exceptions  
    are explained earlier in these instructions for line 32.

8.        
 
  • Alimony and separate maintenance payments  
    reported on Form 1040, line 11.

       
 
  • Nontaxable combat pay. This amount should be 
    reported in box 12 of Form W-2 with code Q.

                     
9.   Enter the earned income you (and your spouse if filing jointly) received as a self-employed individual or a partner. Generally, this is your (and your spouse's if filing jointly) net earnings from self-employment if your personal services were a material income-producing factor, minus any deductions on Form 1040, lines 27 and 28. If zero or less, enter -0-. For more details, see Pub. 590-A 9.        
10.   Add lines 8 and 9 10.        
                   
   
If married filing jointly and line 10 is less than $11,000 ($12,000 if one spouse is age 50 or older at the end of 2015; $13,000 if both spouses are age 50 or older at the end of 2015), stop here and use the worksheet in Pub. 590-A to figure your IRA deduction.    
11.   Enter traditional IRA contributions made, or that will be made by the due date of your 2015 return not counting extensions (April 18, 2016, for most people), for 2015 to your IRA on line 11a and to your spouse's IRA on line 11b 11a.     11b.      
12.   On line 12a, enter the smallest of line 7a, 10, or 11a. On line 12b, enter the smallest of line 7b, 10, or 11b. This is the most you can deduct. Add the amounts on lines 12a and 12b and enter the total on Form 1040, line 32. Or, if you want, you can deduct a smaller amount and treat the rest as a nondeductible contribution (see Form 8606) 12a.     12b.      
         

Line 33

Student Loan Interest Deduction

You can take this deduction only if all of the following apply.

  • You paid interest in 2015 on a qualified student loan (defined later).

  • Your filing status is any status except married filing separately.

  • Your modified adjusted gross income (AGI) is less than: $80,000 if single, head of household, or qualifying widow(er); $160,000 if married filing jointly. Use lines 2 through 4 of the worksheet in these instructions to figure your modified AGI.

  • You, or your spouse if filing jointly, aren't claimed as a dependent on someone else's (such as your parent's) 2015 tax return.

Use the worksheet in these instructions to figure your student loan interest deduction.

Exception.   Use Pub. 970 instead of the worksheet in these instructions to figure your student loan interest deduction if you file Form 2555, 2555-EZ, or 4563, or you exclude income from sources within Puerto Rico.

Qualified student loan.   A qualified student loan is any loan you took out to pay the qualified higher education expenses for any of the following individuals who was an eligible student.
  1. Yourself or your spouse.

  2. Any person who was your dependent when the loan was taken out.

  3. Any person you could have claimed as a dependent for the year the loan was taken out except that:

    1. The person filed a joint return,

    2. The person had gross income that was equal to or more than the exemption amount for that year ($4,000 for 2015), or

    3. You, or your spouse if filing jointly, could be claimed as a dependent on someone else's return.

  However, a loan isn't a qualified student loan if (a) any of the proceeds were used for other purposes, or (b) the loan was from either a related person or a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan. For details, see Pub. 970.

Qualified higher education expenses.   Qualified higher education expenses generally include tuition, fees, room and board, and related expenses such as books and supplies. The expenses must be for education in a degree, certificate, or similar program at an eligible educational institution. An eligible educational institution includes most colleges, universities, and certain vocational schools. For details, see Pub. 970.

Student Loan Interest Deduction Worksheet—Line 33

Before you begin:

  • Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36).

  • Be sure you have read the Exception in the instructions for this line to see if you can use this worksheet instead of Pub. 970 to figure your deduction.

   
1.   Enter the total interest you paid in 2015 on qualified student loans (see the instructions for line 33). Do not enter more than $2,500 1.    
2.   Enter the amount from Form 1040, line 22 2.      
3.   Enter the total of the amounts from Form 1040, lines 23 through 32, plus any write-in adjustments you entered on the dotted line next to line 36 3.      
4.   Subtract line 3 from line 2 4.      
5.   Enter the amount shown below for your filing status.    
 
  • Single, head of household, or qualifying  
    widow(er)—$65,000

  • Married filing jointly—$130,000

    5.      
6.   Is the amount on line 4 more than the amount on line 5?        
   
No.
Skip lines 6 and 7, enter -0- on line 8, and go to line 9.        
   
Yes.
Subtract line 5 from line 4 6.      
7.   Divide line 6 by $15,000 ($30,000 if married filing jointly). Enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000 7. .  
8.   Multiply line 1 by line 7 8.    
9.   Student loan interest deduction. Subtract line 8 from line 1. Enter the result here and on  
Form 1040, line 33. Do not include this amount in figuring any other deduction on your return (such as on Schedule A, C, E, etc.)
9.    
   

Line 34

Tuition and Fees

If you paid qualified tuition and fees for yourself, your spouse, or your dependent(s), you may be able to take this deduction. See Form 8917.

You may be able to take a credit for your educational expenses instead of a deduction. See the instructions for lines 50 and 68 for details.

Line 35

Domestic Production Activities Deduction

You may be able to deduct up to 9% of your qualified production activities income from the following activities.

  1. Construction of real property performed in the United States.

  2. Engineering or architectural services performed in the United States for construction of real property in the United States.

  3. Any lease, rental, license, sale, exchange, or other disposition of:

    1. Tangible personal property, computer software, and sound recordings that you manufactured, produced, grew, or extracted in whole or in significant part in the United States,

    2. Any qualified film you produced, or

    3. Electricity, natural gas, or potable water you produced in the United States.

Your deduction may be reduced if you had oil-related qualified production activities income.

The deduction doesn't apply to income derived from:

  • The sale of food and beverages you prepared at a retail establishment;

  • Property you leased, licensed, or rented for use by any related person;

  • The transmission or distribution of electricity, natural gas, or potable water; or

  • The lease, rental, license, sale, exchange, or other disposition of land.

For details, see Form 8903 and its instructions.

Line 36

Include in the total on line 36 any of the following write-in adjustments. To find out if you can take the deduction, see the form or publication indicated. On the dotted line next to line 36, enter the amount of your deduction and identify it as indicated.

  • Archer MSA deduction (see Form 8853). Identify as “MSA.

  • Jury duty pay if you gave the pay to your employer because your employer paid your salary while you served on the jury. Identify as “Jury Pay.

  • Deductible expenses related to income reported on line 21 from the rental of personal property engaged in for profit. Identify as “PPR.

  • Reforestation amortization and expenses (see Pub. 535). Identify as “RFST.

  • Repayment of supplemental unemployment benefits under the Trade Act of 1974 (see Pub. 525). Identify as “Sub-Pay TRA.

  • Contributions to section 501(c)(18)(D) pension plans (see Pub. 525). Identify as “501(c)(18)(D).

  • Contributions by certain chaplains to section 403(b) plans (see Pub. 517). Identify as “403(b).

  • Attorney fees and court costs for actions involving certain unlawful discrimination claims, but only to the extent of gross income from such actions (see Pub. 525). Identify as “UDC.

  • Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations, up to the amount of the award includible in your gross income. Identify as “WBF.

Line 37

If line 37 is less than zero, you may have a net operating loss that you can carry to another tax year. See the Instructions for Form 1045 for details.

Tax and Credits

Line 39a

If you were born before January 2, 1951, or were blind at the end of 2015, check the appropriate box(es) on line 39a. If you were married and checked the box on Form 1040, line 6b, and your spouse was born before January 2, 1951, or was blind at the end of 2015, also check the appropriate box(es) for your spouse. Be sure to enter the total number of boxes checked. Do not check any box(es) for your spouse if your filing status is head of household.

Death of spouse in 2015.   If your spouse was born before January 2, 1951, but died in 2015 before reaching age 65, do not check the box that says “Spouse was born before January 2, 1951.

  A person is considered to reach age 65 on the day before his or her 65th birthday.

Example.

Your spouse was born on February 14, 1950, and died on February 13, 2015. Your spouse is considered age 65 at the time of death. Check the appropriate box for your spouse on line 39a. However, if your spouse died on February 12, 2015, your spouse isn't considered age 65. Do not check the box.

Death of taxpayer in 2015.   If you are preparing a return for someone who died in 2015, see Pub. 501 before completing line 39a.

Blindness

If you were not totally blind as of December 31, 2015, you must get a statement certified by your eye doctor (ophthalmologist or optometrist) that:

  • You can't see better than 20/200 in your better eye with glasses or contact lenses, or

  • Your field of vision is 20 degrees or less.

If your eye condition isn't likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor (ophthalmologist or optometrist) to this effect instead.

You must keep the statement for your records.

Line 39b

If your filing status is married filing separately (box 3 is checked), and your spouse itemizes deductions on his or her return, check the box on line 39b. Also check that box if you were a dual-status alien. But if you were a dual-status alien and you file a joint return with your spouse who was a U.S. citizen or resident alien at the end of 2015 and you and your spouse agree to be taxed on your combined worldwide income, do not check the box.

Line 40

Itemized Deductions or Standard Deduction

In most cases, your federal income tax will be less if you take the larger of your itemized deductions or standard deduction.

Itemized Deductions

To figure your itemized deductions, fill in Schedule A.

Standard Deduction

Most people can find their standard deduction by looking at the amounts listed under “All others” to the left of line 40.

Exception 1 – dependent.   If you, or your spouse if filing jointly, can be claimed as a dependent on someone else's 2015 return, use the Standard Deduction Worksheet for Dependents to figure your standard deduction.

Exception 2 – box on line 39a checked.   If you checked any box on line 39a, figure your standard deduction using the Standard Deduction Chart for People Who Were Born Before January 2, 1951, or Were Blind.

Exception 3 – box on line 39b checked.   If you checked the box on line 39b, your standard deduction is zero, even if you were born before January 2, 1951, or were blind.

Line 42

Exemptions

If the amount on line 38 is over $154,950, use the Deduction for Exemptions Worksheet to figure your deduction for exemptions.

Standard Deduction Worksheet for Dependents—Line 40

Use this worksheet only if someone can claim you, or your spouse if filing jointly, as a dependent.

1.   Is your earned income* more than $700?      
   
Yes.
Add $350 to your earned income. Enter the total     1.    
   
No.
Enter $1,050
2.   Enter the amount shown below for your filing status.      
 
  • Single or married filing separately—$6,300

  • Married filing jointly—$12,600

  • Head of household—$9,250

    2.    
3.   Standard deduction.          
  a. Enter the smaller of line 1 or line 2. If born after January 1, 1951, and not blind, stop here and enter this amount on Form 1040, line 40. Otherwise, go to line 3b 3a.    
  b. If born before January 2, 1951, or blind, multiply the number on Form 1040, line 39a, by $1,250 ($1,550 if single or head of household) 3b.    
  c. Add lines 3a and 3b. Enter the total here and on Form 1040, line 40 3c.    
* Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also includes any taxable scholarship or fellowship grant. Generally, your earned income is the total of the amount(s) you reported on Form 1040, lines 7, 12, and 18, minus the amount, if any, on line 27.
Standard Deduction Chart for People Who Were Born Before January 2, 1951, or Were Blind
Do not use this chart if someone can claim you, or your spouse if filing jointly, as a dependent. Instead, use the worksheet above.
Enter the number from the box on  
Form 1040, line 39a
 
Do not use the number of exemptions from line 6d.  
IF your filing  
status is . . .
AND the number in  
the box above is . . .
  THEN your standard  
deduction is . . .
 
Single
2
  $7,850 
9,400
   
Married filing jointly  
or  
Qualifying widow(er)



4
  $13,850 
15,100 
16,350 
17,600
   
Married filing separately


4
  $7,550 
8,800 
10,050 
11,300
   
Head of household
2
  $10,800 
12,350
   

Deduction for Exemptions Worksheet—Line 42

1.   Is the amount on Form 1040, line 38, more than the amount shown on line 4 below for your filing status?  
   
No.
Multiply $4,000 by the total number of exemptions claimed on Form 1040, line 6d, and enter the result on line 42.
 
   
Yes.
Continue.                
2.   Multiply $4,000 by the total number of exemptions claimed on Form 1040, line 6d 2.    
3.   Enter the amount from Form 1040, line 38 3.    
4.   Enter the amount shown below for your filing status.
  • Single —$258,250

  • Married filing jointly or qualifying  
    widow(er)—$309,900

  • Married filing separately—$154,950

  • Head of household—$284,050

    4.    
5.   Subtract line 4 from line 3. If the result is more than $122,500 ($61,250 if married filing separately) ,
Enter -0- on line 42
5.    
6.   Divide line 5 by $2,500 ($1,250 if married filing separately). If the result isn't a whole number, increase it to the next higher whole number (for example, increase .00004 to 1) 6.    
7.   Multiply line 6 by 2% (0.02) and enter the result as a decimal (rounded to at least three places) 7.    
8.   Multiply line 2 by line 7 8.    
9.   Deduction for exemptions. Subtract line 8 from line 2. Enter the result here and on Form 1040, line 42 9.    

Line 44

Tax

Include in the total on line 44 all of the following taxes that apply.

  • Tax on your taxable income. Figure the tax using one of the methods described here.

  • Tax from Form(s) 8814 (relating to the election to report child's interest or dividends). Check the appropriate box.

  • Tax from Form 4972 (relating to lump-sum distributions). Check the appropriate box.

  • Tax due to making a section 962 election (the election made by a domestic shareholder of a controlled foreign corporation to be taxed at corporate rates). See section 962 for details. Check box c and enter the amount and “962” in the space next to that box. Attach a statement showing how you figured the tax.

  • Recapture of an education credit. You may owe this tax if you claimed an education credit in an earlier year, and either tax-free educational assistance or a refund of qualified expenses was received in 2015 for the student. See Form 8863 for more details. Check box c and enter the amount and “ECR” in the space next to that box.

  • Any tax from Form 8621, line 16e, relating to a section 1291 fund. Check box c and enter the amount of the tax and “1291TAX” in the space next to that box.

Do you want the IRS to figure the tax on your taxable income for you?

Yes.   See chapter 30 of Pub. 17 for details, including who is eligible and what to do. If you have paid too much, we will send you a refund. If you didn't pay enough, we will send you a bill.

No.   Use one of the following methods to figure your tax.

Tax Table or Tax Computation Worksheet.   If your taxable income is less than $100,000, you must use the Tax Table, later in these instructions, to figure your tax. Be sure you use the correct column. If your taxable income is $100,000 or more, use the Tax Computation Worksheet right after the Tax Table.

However, do not use the Tax Table or Tax Computation Worksheet to figure your tax if any of the following applies.

Form 8615.   Form 8615 generally must be used to figure the tax for any child who had more than $2,100 of unearned income, such as taxable interest, ordinary dividends, or capital gains (including capital gain distributions), and who either:
  1. Was under age 18 at the end of 2015,

  2. Was age 18 at the end of 2015 and didn't have earned income that was more than half of the child's support, or

  3. Was a full-time student at least age 19 but under age 24 at the end of 2015 and didn't have earned income that was more than half of the child's support.

  But if the child files a joint return for 2015 or if neither of the child's parents was alive at the end of 2015, do not use Form 8615 to figure the child's tax.

  A child born on January 1, 1998, is considered to be age 18 at the end of 2015; a child born on January 1, 1997, is considered to be age 19 at the end of 2015; a child born on January 1, 1992, is considered to be age 24 at the end of 2015.

Schedule D Tax Worksheet.   If you have to file Schedule D, and line 18 or 19 of Schedule D is more than zero, use the Schedule D Tax Worksheet in the Instructions for Schedule D to figure the amount to enter on Form 1040, line 44. But if you are filing Form 2555 or 2555-EZ, you must use the Foreign Earned Income Tax Worksheet instead.

Qualified Dividends and Capital Gain Tax Worksheet.   Use the Qualified Dividends and Capital Gain Tax Worksheet, later, to figure your tax if you do not have to use the Schedule D Tax Worksheet and if any of the following applies.
  • You reported qualified dividends on Form 1040, line 9b.

  • You do not have to file Schedule D and you reported capital gain distributions on Form 1040, line 13.

  • You are filing Schedule D and Schedule D, lines 15 and 16, are both more than zero.

  But if you are filing Form 2555 or 2555-EZ, you must use the Foreign Earned Income Tax Worksheet instead.

Schedule J.   If you had income from farming or fishing (including certain amounts received in connection with the Exxon Valdez litigation), your tax may be less if you choose to figure it using income averaging on Schedule J.

Foreign Earned Income Tax Worksheet.   If you claimed the foreign earned income exclusion, housing exclusion, or housing deduction on Form 2555 or 2555-EZ, you must figure your tax using the Foreign Earned Income Tax Worksheet.

Foreign Earned Income Tax Worksheet—Line 44

If Form 1040, line 43, is zero, do not complete this worksheet.
1. Enter the amount from Form 1040, line 43 1.  
2a. Enter the amount from your (and your spouse's, if filing jointly) Form 2555, lines 45 and 50, or Form 2555-EZ, line 18 2a.  
b. Enter the total amount of any itemized deductions or exclusions you couldn't claim because they are related to excluded income b.  
c. Subtract line 2b from line 2a. If zero or less, enter -0- c.  
3. Add lines 1 and 2c 3.  
4. Figure the tax on the amount on line 3. Use the Tax Table, Tax Computation Worksheet, Qualified Dividends and Capital Gain Tax Worksheet*, Schedule D Tax Worksheet*, or Form 8615, whichever applies. See the instructions for line 44 to see which tax computation method applies. (Do not use a second Foreign Earned Income Tax Worksheet to figure the tax on this line) 4.  
5. Figure the tax on the amount on line 2c. If the amount on line 2c is less than $100,000, use the Tax Table to figure this tax. If the amount on line 2c is $100,000 or more, use the Tax Computation Worksheet 5.  
6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on Form 1040, line 44 6.  
*Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet or Schedule D Tax Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Next, you must determine if you have a capital gain excess. To find out if you have a capital gain excess, subtract Form 1040, line 43, from line 6 of your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess.
If you do not have a capital gain excess, complete the rest of either of those worksheets according to the worksheet's instructions. Then complete lines 5 and 6 above.
If you have a capital gain excess, complete a second Qualified Dividends and Capital Gain Tax Worksheet or Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5 and 6 above. These modifications are to be made only for purposes of filling out the Foreign Earned Income Tax Worksheet above.
1. Reduce (but not below zero) the amount you would otherwise enter on line 3 of your Qualified Dividends and Capital Gain Tax Worksheet or line 9 of your Schedule D Tax Worksheet by your capital gain excess.
2. Reduce (but not below zero) the amount you would otherwise enter on line 2 of your Qualified Dividends and Capital Gain Tax Worksheet or line 6 of your Schedule D Tax Worksheet by any of your capital gain excess not used in (1) above.
3. Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess.
4. Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet in the Instructions for Schedule D (Form 1040).

Qualified Dividends and Capital Gain Tax Worksheet—Line 44

Before you begin:

  • See the earlier instructions for line 44 to see if you can use this worksheet to figure your tax.

  • Before completing this worksheet, complete Form 1040 through line 43.

  • If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on line 13 of Form 1040.

1.   Enter the amount from Form 1040, line 43. However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet 1.        
2.   Enter the amount from Form 1040, line 9b* 2.        
3.   Are you filing Schedule D?*        
   
Yes.
Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0-   3.        
   
No.
Enter the amount from Form 1040, line 13        
4.   Add lines 2 and 3 4.        
5.   If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, enter -0- 5.        
6.   Subtract line 5 from line 4. If zero or less, enter -0- 6.        
7.   Subtract line 6 from line 1. If zero or less, enter -0- 7.        
8.   Enter:    
    $37,450 if single or married filing separately,            
    $74,900 if married filing jointly or qualifying widow(er), 
$50,200 if head of household.
    8.        
9.   Enter the smaller of line 1 or line 8 9.        
10.   Enter the smaller of line 7 or line 9 10.        
11.   Subtract line 10 from line 9. This amount is taxed at 0% 11.        
12.   Enter the smaller of line 1 or line 6 12.        
13.   Enter the amount from line 11 13.        
14.   Subtract line 13 from line 12 14.        
15.   Enter:    
    $413,200 if single, 
$232,425 if married filing separately, 
$464,850 if married filing jointly or qualifying widow(er), 
$439,000 if head of household.
             
    15.        
16.   Enter the smaller of line 1 or line 15 16.        
17.   Add lines 7 and 11 17.            
18.   Subtract line 17 from line 16. If zero or less, enter -0- 18.            
19.   Enter the smaller of line 14 or line 18 19.            
20.   Multiply line 19 by 15% (0.15)         20.    
21.   Add lines 11 and 19 21.            
22.   Subtract line 21 from line 12 22.            
23.   Multiply line 22 by 20% (0.20)         23.    
24.   Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet 24.      
25.   Add lines 20, 23, and 24 25.      
26.   Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet 26.      
27.   Tax on all taxable income. Enter the smaller of line 25 or line 26. Also include this amount on Form 1040, line 44. If you are filing Form 2555 or 2555-EZ, do not enter this amount on Form 1040, line 44. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet 27.      
*If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line.
 

Line 45

Alternative Minimum Tax (AMT)

If you aren't sure whether you owe the AMT, complete the Worksheet To See if You Should Fill in Form 6251.

Exception.   Fill in Form 6251 instead of using the worksheet if you claimed or received any of the following items.
  • Accelerated depreciation.

  • Tax-exempt interest from private activity bonds.

  • Intangible drilling, circulation, research, experimental, or mining costs.

  • Amortization of pollution-control facilities or depletion.

  • Income or (loss) from tax-shelter farm activities, passive activities, partnerships, S corporations, or activities for which you aren't at risk.

  • Income from long-term contracts not figured using the percentage-of-completion method.

  • Interest paid on a home mortgage not used to buy, build, or substantially improve your home.

  • Investment interest expense reported on Form 4952.

  • Net operating loss deduction.

  • Alternative minimum tax adjustments from an estate, trust, electing large partnership, or cooperative.

  • Section 1202 exclusion.

  • Stock by exercising an incentive stock option and you didn't dispose of the stock in the same year.

  • Any general business credit claimed on Form 3800 if either line 6 (in Part I) or line 25 of Form 3800 is more than zero.

  • Qualified electric vehicle credit.

  • Alternative fuel vehicle refueling property tax.

  • Credit for prior year minimum tax.

  • Foreign tax credit.

Form 6251 should be filled in for certain children who are under age 24 at the end of 2015. See the Instructions for Form 6251 for more information.

For help with the alternative minimum tax, go to www.irs.gov/AMT.

Worksheet To See if You Should Fill in Form 6251—Line 45

Before you begin:

  • Be sure you have read the Exception in the instructions for this line to see if you must fill in Form 6251 instead of using this worksheet.

1. Are you filing Schedule A?      
 
No.
Skip lines 1 through 3; enter on line 4 the amount from Form 1040, line 38, and go to line 5      
 
Yes.
Enter the amount from Form 1040, line 41 1.    
2. If you or your spouse was age 65 or older, enter the smaller of the amount on Schedule A, line 4, or 2.5% (0.025) of the amount on Form 1040, line 38. If zero or less, enter -0- 2.    
3. Enter the total of the amounts from Schedule A, lines 9 and 27 3.    
4. Add lines 1 through 3 4.    
5. Enter any tax refund from Form 1040, lines 10 and 21 5.    
6. If you completed the Itemized Deductions Worksheet in the Instructions for Schedule A, enter the amount from line 9 of that worksheet 6.    
7. Add lines 5 and 6 7.    
8. Subtract line 7 from line 4 8.    
9. Enter the amount shown below for your filing status      
 
  • Single or head of household—$53,600

  • Married filing jointly or qualifying widow(er)—$83,400

  • Married filing separately—$41,700

    9.    
10. Is the amount on line 8 more than the amount on line 9?      
 
No.
You do not need to fill in Form 6251. Do not complete the rest of this worksheet.
     
 
Yes.
Subtract line 9 from line 8 10.    
11. Enter the amount shown below for your filing status.      
 
  • Single or head of household—$119,200

  • Married filing jointly or qualifying widow(er)—$158,900

  • Married filing separately—$79,450

    11.    
12. Is the amount on line 8 more than the amount on line 11?      
 
No.
Enter -0-. Skip line 13. Enter on line 14 the amount from line 10, and go to line 15.      
 
Yes.
Subtract line 11 from line 8 12.    
13. Multiply line 12 by 25% (0.25) and enter the smaller of the result or line 9 13.    
14. Add lines 10 and 13 14.    
15. Is the amount on line 14 more than $185,400 ($92,700 if married filing separately)?      
 
Yes.
Fill in Form 6251 to see if you owe the alternative minimum tax.
     
 
No.
Multiply line 14 by 26% (0.26) 15.    
16. Add Form 1040, line 44 (minus any tax from Form 4972), and Form 1040, line 46. (If you used Schedule J to figure your tax on Form 1040, line 44, refigure that tax without using Schedule J before including it in this calculation) 16.    
Next. Is the amount on line 15 more than the amount on line 16?  
 
Yes.
Fill in Form 6251 to see if you owe the alternative minimum tax.  
 
No.
You do not owe alternative minimum tax and do not need to fill out Form 6251. Leave line 45 blank.  

Line 46

Excess Advance Premium Tax Credit Repayment

The premium tax credit helps pay premiums for health insurance purchased from the Marketplace. If advance payments were made for coverage for you, your spouse, or your dependent, complete Form 8962. If the advance payments were more than the premium tax credit you can claim, enter the amount from Form 8962, line 29.

You may have to repay excess advance premium tax credit payments even if someone else enrolled you, your spouse, or your dependent. You may also have to repay excess advance premium tax credit payments if you enrolled someone in coverage through the Marketplace whom you do not claim as a dependent on your return. For more information, see the instructions for Form 8962.

Line 48

Foreign Tax Credit

If you paid income tax to a foreign country or U.S. possession, you may be able to take this credit. Generally, you must complete and attach Form 1116 to do so.

Exception.   You do not have to complete Form 1116 to take this credit if all of the following apply.
  1. All of your foreign source gross income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement).

  2. The total of your foreign taxes wasn't more than $300 (not more than $600 if married filing jointly).

  3. You held the stock or bonds on which the dividends or interest were paid for at least 16 days and were not obligated to pay these amounts to someone else.

  4. You are not filing Form 4563 or excluding income from sources within Puerto Rico.

  5. All of your foreign taxes were:

    1. Legally owed and not eligible for a refund or reduced tax rate under a tax treaty, and

    2. Paid to countries that are recognized by the United States and do not support terrorism.

  For more details on these requirements, see the Instructions for Form 1116.

   Do you meet all five requirements just listed?

Yes.   Enter on line 48 the smaller of (a) your total foreign taxes, or (b) the total of the amounts on Form 1040, lines 44 and 46.

No.   See Form 1116 to find out if you can take the credit and, if you can, if you have to file Form 1116.

Line 49

Credit for Child and Dependent Care Expenses

You may be able to take this credit if you paid someone to care for:

  • Your qualifying child under age 13 whom you claim as your dependent,

  • Your disabled spouse or any other disabled person who couldn't care for himself or herself, or

  • Your child whom you couldn't claim as a dependent because of the rules for Children of divorced or separated parents in the instructions for line 6c.

For details, use Tax Topic 602 or see Form 2441.

Line 50

Education Credits

If you (or your dependent) paid qualified expenses in 2015 for yourself, your spouse, or your dependent to enroll in or attend an eligible educational institution, you may be able to take an education credit. See Form 8863 for details. However, you can't take an education credit if any of the following applies.

  • You, or your spouse if filing jointly, are claimed as a dependent on someone else's (such as your parent's) 2015 tax return.

  • Your filing status is married filing separately.

  • The amount on Form 1040, line 38, is $90,000 or more ($180,000 or more if married filing jointly).

  • You, or your spouse, were a nonresident alien for any part of 2015 unless your filing status is married filing jointly.

You may be able to increase an education credit if the student chooses to include all or part of a Pell grant or certain other scholarships or fellowships in income.

For more information, see Pub. 970, the instructions for line 68, and www.irs.gov/uac/Am-I-Eligible-to-Claim-an-Education-Credit%3F.

Line 51

Retirement Savings Contributions Credit (Saver's Credit)

You may be able to take this credit if you, or your spouse if filing jointly, made (a) contributions, other than rollover contributions, to a traditional or Roth IRA (including a myRA); (b) elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan; (c) voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan); or (d) contributions to a 501(c)(18)(D) plan.

However, you can't take the credit if either of the following applies.

  1. The amount on Form 1040, line 38, is more than $30,500 ($45,750 if head of household; $61,000 if married filing jointly).

  2. The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1998, (b) is claimed as a dependent on someone else's 2015 tax return, or (c) was a student (defined next).

You were a student if during any part of 5 calendar months of 2015 you:

  • Were enrolled as a full-time student at a school, or

  • Took a full-time, on-farm training course given by a school or a state, county, or local government agency.

A school includes a technical, trade, or mechanical school. It doesn't include an on-the-job training course, correspondence school, or school offering courses only through the Internet.

For more details, use Tax Topic 610 or see Form 8880.

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Line 53

Residential Energy Credits

Residential energy efficient property credit.   You may be able to take this credit by completing and attaching Form 5695 if you paid for any of the following during 2015.
  • Qualified solar electric property for use in your home located in the United States.

  • Qualified solar water heating property for use in your home located in the United States.

  • Qualified fuel cell property installed on or in connection with your main home located in the United States.

  • Qualified small wind energy property for use in connection with your home located in the United States.

  • Qualified geothermal heat pump property installed on or in connection with your home located in the United States.

Nonbusiness energy property credit.   You may be able to take this credit by completing and attaching Form 5695 for any of the following improvements to your main home located in the United States in 2015 if they are new and meet certain requirements for energy efficiency.
  • Any insulation material or system primarily designed to reduce heat gain or loss in your home.

  • Exterior windows (including skylights).

  • Exterior doors.

  • A metal roof or asphalt roof with pigmented coatings or cooling granules primarily designed to reduce the heat gain in your home.

  You may also be able to take this credit for the cost of the following items if the items meet certain performance and quality standards.
  • Certain electric heat pump water heaters, electric heat pumps, central air conditioners, and natural gas, propane, or oil water heaters.

  • A qualified furnace or hot water boiler that uses natural gas, propane, or oil.

  • A stove that burns biomass fuel to heat your home or to heat water for use in your home.

  • An advanced main air circulating fan used in a natural gas, propane, or oil furnace.

Condos and co-ops.   If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of such association or corporation for purposes of these credits.

More details.   For details, see Form 5695.

Line 54

Other Credits

Enter the total of the following credits on line 54 and check the appropriate box(es). Check all boxes that apply. If box c is checked, also enter the applicable form number. To find out if you can take the credit, see the form or publication indicated.

  • General business credit. This credit consists of a number of credits that usually apply only to individuals who are partners, shareholders in an S corporation, self-employed, or who have rental property. See Form 3800 or Pub. 334.

  • Credit for prior year minimum tax. If you paid alternative minimum tax in a prior year, see Form 8801.

  • Mortgage interest credit. If a state or local government gave you a mortgage credit certificate, see Form 8396.

  • Credit for the elderly or the disabled. See Schedule R.

  • Adoption credit. You may be able to take this credit if you paid expenses to adopt a child or you adopted a child with special needs and the adoption became final in 2015. See the Instructions for Form 8839.

  • District of Columbia first-time homebuyer credit. You can't claim this credit for a home you bought after 2011. You can claim it only if you have a credit carryforward from 2014. See Form 8859.

  • Qualified plug-in electric drive motor vehicle credit. See Form 8936.

  • Qualified electric vehicle credit. You can't claim this credit for a vehicle placed in service after 2006. You can claim this credit only if you have an electric vehicle passive activity credit carried forward from a prior year. See Form 8834.

  • Alternative motor vehicle credit. See Form 8910 if you placed a new fuel cell motor vehicle in service during 2015.

  • Alternative fuel vehicle refueling property credit. See Form 8911.

  • Credit to holders of tax credit bonds. See Form 8912.

Other Taxes

Line 58

Unreported Social Security and Medicare Tax from Forms 4137 and 8919

Enter the total of any taxes from Form 4137 and Form 8919. Check the appropriate box(es).

Form 4137.   If you received tips of $20 or more in any month and you didn't report the full amount to your employer, you must pay the social security and Medicare or railroad retirement (RRTA) tax on the unreported tips.

  Do not include the value of any noncash tips, such as tickets or passes. You do not pay social security and Medicare taxes or RRTA tax on these noncash tips.

  To figure the social security and Medicare tax, use Form 4137. If you owe RRTA tax, contact your employer. Your employer will figure and collect the RRTA tax.

  
You may be charged a penalty equal to 50% of the social security and Medicare or RRTA tax due on tips you received but didn't report to your employer.

Form 8919.   If you are an employee who received wages from an employer who didn't withhold social security and Medicare tax from your wages, use Form 8919 to figure your share of the unreported tax. Include on line 58 the amount from line 13 of Form 8919. Include the amount from line 6 of Form 8919 on Form 1040, line 7.

Line 59

Additional Tax on IRAs, Other Qualified Retirement Plans, etc.

If any of the following apply, see Form 5329 and its instructions to find out if you owe this tax and if you must file Form 5329. Also see Form 5329 and its instructions for definitions of the terms used here.

  1. You received an early distribution from (a) an IRA or other qualified retirement plan, (b) an annuity, or (c) a modified endowment contract entered into after June 20, 1988, and the total distribution wasn't rolled over in a qualified rollover contribution.

  2. Excess contributions were made to your IRA, Coverdell education savings account (ESA), Archer MSA, health savings account (HSA), or ABLE account.

  3. You received a taxable distribution from a Coverdell ESA, qualified tuition program, or ABLE account.

  4. You were born before July 1, 1944, and didn't take the minimum required distribution from your IRA or other qualified retirement plan.

Exception.   If only item (1) applies and distribution code 1 is correctly shown in box 7 of all your Forms 1099-R, you do not have to file Form 5329. Instead, multiply the taxable amount of the distribution by 10% (0.10) and enter the result on line 59. The taxable amount of the distribution is the part of the distribution you reported on Form 1040, line 15b or line 16b, or on Form 4972. Also, enter “No” under the heading Other Taxes to the left of line 59 to indicate that you do not have to file Form 5329. But you must file Form 5329 if distribution code 1 is incorrectly shown in box 7 of Form 1099-R or you qualify for an exception, such as the exceptions for qualified medical expenses, qualified higher education expenses, qualified first-time homebuyer distributions, or a qualified reservist distribution.

Line 60a

Household Employment Taxes

Enter the household employment taxes you owe for having a household employee. If any of the following apply, see Schedule H and its instructions to find out if you owe these taxes.

  1. You paid any one household employee (defined below) cash wages of $1,900 or more in 2015. Cash wages include wages paid by check, money order, etc. But do not count amounts paid to an employee who was under age 18 at any time in 2015 and was a student.

  2. You withheld federal income tax during 2015 at the request of any household employee.

  3. You paid total cash wages of $1,000 or more in any calendar quarter of 2014 or 2015 to household employees.

Any person who does household work is a household employee if you can control what will be done and how it will be done. Household work includes work done in or around your home by babysitters, nannies, health aides, housekeepers, yard workers, and similar domestic workers.

Line 60b

First-time Homebuyer Credit Repayment

Enter the first-time homebuyer credit you have to repay if:

  • You bought the home in 2008, or

  • The home you bought was destroyed, condemned, or sold under threat of condemnation in 2013 and that event occurred during the 36-month period that began on the date you bought the home.

If you bought the home in 2008 and owned and used it as your main home for all of 2015, you can enter your 2015 repayment on this line without attaching Form 5405.

See the Form 5405 instructions for details and for exceptions to the repayment rule.

Line 61

Health Care: Individual Responsibility

You must either:

  • Have qualifying health care coverage for every month of 2015 for yourself, your spouse (if filing jointly), and anyone you can or do claim as a dependent (you are treated as having coverage for any month in which you have coverage for at least 1 day of the month),

  • Qualify for an exemption from the requirement to have health care coverage, or

  • Make a shared responsibility payment with your return and enter the amount on this line.

If you had qualifying health care coverage (called minimum essential coverage) for every month of 2015 for yourself, your spouse (if filing jointly), and anyone you can or do claim as a dependent, check the box on this line and leave the entry space blank.

Otherwise, do not check the box on this line. If you, your spouse (if filing jointly), or someone you can or do claim as a dependent didn’t have coverage for each month of 2015 you must either claim a coverage exemption on Form 8965 or report a shared responsibility payment on line 61. See the instructions for Form 8965 for information on coverage exemptions and figuring the shared responsibility payment.

You can check the box even if:

  • A dependent child who was born or adopted during the year was not covered by your insurance during the month of or months before birth or adoption (but the child must have had minimum essential coverage every month of 2015 following the birth or adoption), or

  • A spouse or dependent who died during the year was not covered by your insurance during the month of death and months after death (but he or she must have had minimum essential coverage every month of 2015 he or she was alive).

If you can be claimed as a dependent, do not check the box on this line. Leave the entry space blank. You do not need to attach Form 8965 or see its instructions.

If you or someone in your household had minimum essential coverage in 2015, the provider of that coverage is required to send you a Form 1095-A, 1095-B, or 1095-C (with Part III completed) that lists individuals in your family who were enrolled in the coverage and shows their months of coverage.

  • Individuals enrolled in health insurance coverage through the Marketplace generally receive this information on Form 1095-A, Health Insurance Marketplace Statement.

  • Individuals enrolled in health insurance coverage provided by their employer generally receive this information on either Form 1095-B, Health Coverage, or on Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.

  • Individuals enrolled in a government-sponsored health program or in other types of coverage generally receive this information on Form 1095-B, Health Coverage.

Even if you haven’t received one of these forms, you may have had health care coverage and can rely on other information you have about your coverage to complete line 61.

Your health care coverage provider may have asked for your social security number. To understand why, go to www.irs.gov/ACASSN.

Minimum essential coverage.   Most health care coverage that people have is minimum essential coverage.

  Minimum essential coverage includes:
  • Most types of health care coverage provided by your employer,

  • Many types of government-sponsored health care coverage including Medicare, most Medicaid coverage, and most health care coverage provided to veterans and active duty service members,

  • Certain types of health care coverage you buy directly from an insurance company, and

  • Health care coverage you buy through the Marketplace.

See the instructions for Form 8965 for more information on what qualifies as minimum essential coverage.

Reminder - health care coverage.   If you need health care coverage, go to www.HealthCare.gov to learn about health insurance options for you and your family, how to buy health insurance, and how you might qualify to get financial assistance to buy health insurance.

Premium tax credit.   If you, your spouse, or a dependent enrolled in health insurance through the Marketplace, you may be able to claim the premium tax credit. See the instructions for line 69 and Form 8962.

Line 62

Other Taxes

Use line 62 to report any taxes not reported elsewhere on your return or other schedules. To find out if you owe the tax, see the form or publication indicated. Enter on line 62 the total of all of the following taxes you owe.

Additional Medicare Tax.   See Form 8959 and its instructions if the total of your 2015 wages and any self-employment income was more than:
  • $125,000 if married filing separately,

  • $250,000 if married filing jointly, or

  • $200,000 if single, head of household, or qualifying widow(er).

Also see Form 8959 if you had railroad retirement (RRTA) compensation that was more than the amount just listed that applies to you.

  If you are married filing jointly and either you or your spouse had wages or RRTA compensation of more than $200,000, your employer may have withheld Additional Medicare Tax even if you do not owe the tax. In that case, you may be able to get a refund of the tax withheld. See the Instructions for Form 8959 to find out how to report the withheld tax on Form 8959.

  Check box a if you owe the tax.

Net Investment Income Tax.   See Form 8960 and its instructions if the amount on Form 1040, line 38, is more than:
  • $125,000 if married filing separately,

  • $250,000 if married filing jointly or qualifying widow(er), or

  • $200,000 if single or head of household.

If you file Form 2555 or 2555-EZ, see Form 8960 and its instructions if the amount on Form 1040, line 38, is more than:
  • $24,200 if married filing separately,

  • $149,200 if married filing jointly or qualifying widow(er), or

  • $99,200 if single or head of household.

  Check box b if you owe the tax.

Other taxes.   For the following taxes, check box c and, in the space next to that box, enter the amount of the tax and the code that identifies it. If you need more room, attach a statement listing the amount of each tax and the code.

  1. Additional tax on health savings account (HSA) distributions (see Form 8889, Part II). Identify as “HSA.

  2. Additional tax on an HSA because you didn't remain an eligible individual during the testing period (see Form 8889, Part III). Identify as “HDHP.

  3. Additional tax on Archer MSA distributions (see Form 8853). Identify as “MSA.

  4. Additional tax on Medicare Advantage MSA distributions (see Form 8853). Identify as “Med MSA.

  5. Recapture of the following credits.

    1. Investment credit (see Form 4255). Identify as “ICR.

    2. Low-income housing credit (see Form 8611). Identify as “LIHCR.

    3. Indian employment credit (see Form 8845). Identify as “IECR.

    4. New markets credit (see Form 8874). Identify as “NMCR.

    5. Credit for employer-provided child care facilities (see Form 8882). Identify as “ECCFR.

    6. Alternative motor vehicle credit (see Form 8910). Identify as “AMVCR.

    7. Alternative fuel vehicle refueling property credit (see Form 8911). Identify as “ARPCR.

    8. Qualified plug-in electric drive motor vehicle credit (see Form 8936). Identify as “8936R.

  6. Recapture of federal mortgage subsidy. If you sold your home in 2015 and it was financed (in whole or in part) from the proceeds of any tax-exempt qualified mortgage bond or you claimed the mortgage interest credit, see Form 8828. Identify as “FMSR.

  7. Section 72(m)(5) excess benefits tax (see Pub. 560). Identify as “Sec. 72(m)(5).

  8. Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. This tax should be shown in box 12 of Form W-2 with codes A and B or M and N. Identify as “UT.

  9. Golden parachute payments. If you received an excess parachute payment (EPP), you must pay a 20% tax on it. This tax should be shown in box 12 of Form W-2 with code K. If you received a Form 1099-MISC, the tax is 20% of the EPP shown in box 13. Identify as “EPP.

  10. Tax on accumulation distribution of trusts (see Form 4970). Identify as “ADT.

  11. Excise tax on insider stock compensation from an expatriated corporation. See section 4985. Identify as “ISC.

  12. Interest on the tax due on installment income from the sale of certain residential lots and timeshares. Identify as “453(l)(3).

  13. Interest on the deferred tax on gain from certain installment sales with a sales price over $150,000. Identify as “453A(c).

  14. Additional tax on recapture of a charitable contribution deduction relating to a fractional interest in tangible personal property. See Pub. 526. Identify as “FITPP.

  15. Look-back interest under section 167(g) or 460(b). See Form 8697 or 8866. Identify as “8697” or “8866.

  16. Additional tax on income you received from a nonqualified deferred compensation plan that fails to meet the requirements of section 409A. This income should be shown in box 12 of Form W-2 with code Z, or in box 15b of Form 1099-MISC. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 409A(a)(1)(B)(ii). See section 409A(a)(1)(B) for details. Identify as “NQDC.

  17. Additional tax on compensation you received from a nonqualified deferred compensation plan described in section 457A if the compensation would have been includible in your income in an earlier year except that the amount wasn't determinable until 2015. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 457A(c)(2). See section 457A for details. Identify as “457A.

  18. Tax on noneffectively connected income for any part of the year you were a nonresident alien (see the Instructions for Form 1040NR). Identify as “1040NR.

  19. Any interest amount from Form 8621, line 16f, relating to distributions from, and dispositions of, stock of a section 1291 fund. Identify as “1291INT.

  20. Any interest amount from Form 8621, line 24. Identify as “1294INT.

Payments

Line 64

Federal Income Tax Withheld

Add the amounts shown as federal income tax withheld on your Forms W-2, W-2G, and 1099-R. Enter the total on line 64. The amount withheld should be shown in box 2 of Form W-2 and in box 4 of Form W-2G or 1099-R. Attach your Form(s) W-2 to the front of your return. Attach Forms W-2G and 1099-R to the front of your return if federal income tax was withheld.

If you received a 2015 Form 1099 showing federal income tax withheld on dividends, taxable or tax-exempt interest income, unemployment compensation, social security benefits, railroad retirement benefits, or other income you received, include the amount withheld in the total on line 64. This should be shown in box 4 of Form 1099, box 6 of Form SSA-1099, or box 10 of Form RRB-1099.

If you had Additional Medicare Tax withheld, include the amount shown on Form 8959, line 24, in the total on line 64. Attach Form 8959.

Also include on line 64 any federal income tax withheld that is shown on a Schedule K-1.

Line 65

2015 Estimated Tax Payments

Enter any estimated federal income tax payments you made for 2015. Include any overpayment that you applied to your 2015 estimated tax from:

  • Your 2014 return, or

  • An amended return (Form 1040X).

If you and your spouse paid joint estimated tax but are now filing separate income tax returns, you can divide the amount paid in any way you choose as long as you both agree. If you can't agree, you must divide the payments in proportion to each spouse's individual tax as shown on your separate returns for 2015. For an example and more information, see Pub. 505. Be sure to show both social security numbers (SSNs) in the space provided on the separate returns. If you or your spouse paid separate estimated tax but you are now filing a joint return, add the amounts you each paid. Follow these instructions even if your spouse died in 2015 or in 2016 before filing a 2015 return.

Divorced taxpayers.   If you got divorced in 2015 and you made joint estimated tax payments with your former spouse, enter your former spouse's SSN in the space provided on the front of Form 1040. If you were divorced and remarried in 2015, enter your present spouse's SSN in the space provided on the front of Form 1040. Also, under the heading Payments to the left of line 65, enter your former spouse's SSN, followed by “DIV.

Name change.   If you changed your name and you made estimated tax payments using your former name, attach a statement to the front of Form 1040 that explains all the payments you and your spouse made in 2015 and the name(s) and SSN(s) under which you made them.

Lines 66a and 66b—Earned Income Credit (EIC)

What Is the EIC?

The EIC is a credit for certain people who work. The credit may give you a refund even if you do not owe any tax or did not have any tax withheld.

To Take the EIC:

  • Follow the steps below.

  • Complete the worksheet that applies to you or let the IRS figure the credit for you.

  • If you have a qualifying child, complete and attach Schedule EIC.

For help in determining if you are eligible for the EIC, go to  
www.irs.gov/eitc and click on “EITC Assistant.” This service is available in English and Spanish.

If you take the EIC even though you aren't eligible and it is determined that your error is due to reckless or intentional disregard of the EIC rules, you won't be allowed to take the credit for 2 years even if you are otherwise eligible to do so. If you fraudulently take the EIC, you won't be allowed to take the credit for 10 years. See Form 8862, who must file, later. You may also have to pay penalties.

Step 1. All Filers

1. If, in 2015:

  • 3 or more children lived with you, is the amount on Form 1040, line 38, less than $47,747 ($53,267 if married filing jointly)?
  • 2 children lived with you, is the amount on Form 1040, line 38, less than $44,454 ($49,974 if married filing  
    jointly)?
  • 1 child lived with you, is the amount on Form 1040, line 38, less than $39,131 ($44,651 if married filing jointly)?
  • No children lived with you, is the amount on Form 1040, line 38, less than $14,820 ($20,330 if married filing  
    jointly)?

3 or more children lived with you, is the amount on Form 1040, line 38, less than $47,747 ($53,267 if married filing jointly)? 2 children lived with you, is the amount on Form 1040, line 38, less than $44,454 ($49,974 if married filing  
jointly)? 1 child lived with you, is the amount on Form 1040, line 38, less than $39,131 ($44,651 if married filing jointly)? No children lived with you, is the amount on Form 1040, line 38, less than $14,820 ($20,330 if married filing  
jointly)?

 [ ]
Yes.

 [ ]
No.

You can't take the credit.

2. Do you, and your spouse if filing a joint return, have a social security number that allows you to work and is valid for EIC purposes (explained later under Definitions and Special Rules)?

 [ ]
Yes.

 [ ]
No.

You can't take the credit. 
Enter “No” on the dotted line next to line 66a.

3. Is your filing status married filing separately?

 [ ]
Yes.

You can't take the credit.

 [ ]
No.

4. Are you filing Form 2555 or 2555-EZ (relating to foreign earned income)?

 [ ]
Yes.

You can't take the credit.

 [ ]
No.

5. Were you or your spouse a nonresident alien for any part of 2015?

 [ ]
Yes.

See Nonresident aliens, later, under Definitions and Special Rules.

 [ ]
No.

Go to Step 2.

Step 2. Investment Income

1. Add the amounts from  
Form 1040:

  Line 8a      
  Line 8b +    
  Line 9a +    
  Line 13* +    
         
Investment Income =    
*If line 13 is a loss, enter -0-.      

2. Is your investment income more than $3,400?

 [ ]
Yes.

 [ ]
No.

Skip question 3; go to question 4.

3. Are you filing Form 4797 (relating to sales of business property)?

 [ ]
Yes.

See Form 4797 filers, later, under Definitions and Special Rules.

 [ ]
No.

You can't take the credit.

4. Do any of the following apply for 2015?

  • You are filing Schedule E.
  • You are reporting income from the rental of personal property not used in a trade or business.
  • You are filing Form 8814 (relating to election to report child's interest and dividends on your return).
  • You have income or loss from a passive activity.

You are filing Schedule E. You are reporting income from the rental of personal property not used in a trade or business. You are filing Form 8814 (relating to election to report child's interest and dividends on your return). You have income or loss from a passive activity.

 [ ]
Yes.

Use Worksheet 1 in Pub. 596 to see if you can take the credit.

 [ ]
No.

Go to Step 3.

Step 3. Qualifying Child

A qualifying child for the EIC is a child who is your...
Son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew)
was ...
Under age 19 at the end of 2015 and younger than you  
(or your spouse, if filing jointly)
or
Under age 24 at the end of 2015, a student (defined later), and younger than you (or your spouse, if filing jointly)
or
Any age and permanently and totally disabled (defined later)
Who isn't filing a joint return for 2015  
or is filing a joint return for 2015 only to claim a refund of withheld income tax or estimated tax paid (see Pub. 596 for examples)
Who lived with you in the United States for more than half of 2015.
You can't take the credit for a child who didn't live with you for more than half the year, even if you paid most of the child's living expenses. The IRS may ask you for documents to show you lived with each qualifying child. Documents you might want to keep for this purpose include school and child care records and other records that show your child's address.
If the child didn't live with you for more than half of 2015 because of a temporary absence, birth, death, or kidnapping, see Exception to time lived with you, later.
If the child meets the conditions to be a qualifying child of any other person (other than your spouse if filing a joint return) for 2015, see Qualifying child of more than one person, later. If the child was married, see Married child, later.

1. Do you have at least one child who meets the conditions to be your qualifying child?

 [ ]
Yes.

The child must have a valid social security number (SSN) as defined later, unless the child was born and died in 2015. If at least one qualifying child has a valid SSN (or was born or died in 2015), go to question 2. Otherwise, you can't take the credit.

 [ ]
No.

Skip questions 2 and 3; go to Step 4.

2. Are you filing a joint return for 2015?

 [ ]
Yes.

Skip question 3 and Step 4; go to Step 5.

 [ ]
No.

3. Could you be a qualifying child of another person for 2015? (Check “No” if the other person isn't required to file, and isn't filing, a 2015 tax return or is filing a 2015 return only to claim a refund of withheld income tax or estimated tax paid (see Pub. 596 for examples).)

 [ ]
Yes.

You can't take the credit. Enter “No” on the dotted line next to line 66a.

 [ ]
No.

Skip Step 4; go to Step 5.

Step 4. Filers Without a Qualifying Child

1. Is the amount on Form 1040, line 38, less than $14,820 ($20,330 if married filing jointly)?

 [ ]
Yes.

 [ ]
No.

You can't take the credit.

2. Were you, or your spouse if filing a joint return, at least age 25 but under age 65 at the end of 2015? (Check “Yes” if you, or your spouse if filing a joint return, were born after December 31, 1950, and before January 2, 1991.) If your spouse died in 2015 or if you are preparing a return for someone who died in 2015, see Pub. 596 before you answer.

 [ ]
Yes.

 [ ]
No.

You can't take the credit.

3. Was your main home, and your spouse's if filing a joint return, in the United States for more than half of 2015? Members of the military stationed outside the United States, see Members of the military, later, before you answer.

 [ ]
Yes.

 [ ]
No.

You can't take the credit. Enter “No” on the dotted line next to line 66a.

4. Are you filing a joint return for 2015?

 [ ]
Yes.

Skip questions 5 and 6; go to Step 5.

 [ ]
No.

5. Could you be a qualifying child of another person for 2015? (Check “No” if the other person isn't required to file, and isn't filing, a 2015 tax return or is filing a 2015 return only to claim a refund of withheld income tax or estimated tax paid (see Pub. 596 for examples).)

 [ ]
Yes.

You can't take the credit. Enter “No” on  
the dotted line next to line 66a.

 [ ]
No.

6. Can you be claimed as a dependent on someone else's 2015 tax return?

 [ ]
Yes.

You can't take the credit.

 [ ]
No.

Go to Step 5.

Step 5. Earned Income

1. Are you filing Schedule SE because you were a member of the clergy or you had church employee income of $108.28 or more?

 [ ]
Yes.

See Clergy or Church employees, whichever applies.

 [ ]
No.

Complete the following worksheet.

1. Enter the amount from Form 1040, line 7 1.    
2. Enter any amount included on Form 1040, line 7, that is a taxable scholarship or fellowship grant not reported on a Form W-2 2.    
3. Enter any amount included on Form 1040, line 7, that you received for work performed while an inmate in a penal institution. (Enter “PRI” and the same amount on the dotted line next to Form 1040, line 7) 3.    
4. Enter any amount included on Form 1040, line 7, that you received as a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan. (Enter “DFC” and the same amount on the dotted line next to Form 1040, line 7.) This amount may be shown in box 11 of Form W-2. If you received such an amount but box 11 is blank, contact your employer for the amount received 4.    
5. Enter any amount included on Form 1040, line 7, that is a Medicaid waiver payment you exclude from income. (See the instructions for line 21) 5.    
6. Add lines 2, 3, 4, and 5 6.    
7. Subtract line 6 from line 1 7.    
8. Enter all of your nontaxable combat pay if you elect to include it in earned income. Also enter this amount on Form 1040, line 66b. See Combat pay, nontaxable, later 8.    
   
Electing to include nontaxable combat pay may increase or decrease your EIC. Figure the credit with and without your nontaxable combat pay before making the election.
     
9. Add lines 7 and 8. This is your earned income 9.    

2. Were you self-employed at any time in 2015, or are you filing Schedule SE because you were a member of the clergy or you had church employee income, or are you filing Schedule C or C-EZ as a statutory employee?

 [ ]
Yes.

Skip question 3 and Step 6; go to Worksheet B.

 [ ]
No.

3. If you have:

  • 3 or more qualifying children, is your earned income less than $47,747 ($53,267 if married filing jointly)?
  • 2 qualifying children, is your earned income less than $44,454 ($49,974 if married filing jointly)?
  • 1 qualifying child, is your earned income less than $39,131 ($44,651 if married filing jointly)?
  • No qualifying children, is your earned income less than $14,820 ($20,330 if married filing jointly)?

3 or more qualifying children, is your earned income less than $47,747 ($53,267 if married filing jointly)? 2 qualifying children, is your earned income less than $44,454 ($49,974 if married filing jointly)? 1 qualifying child, is your earned income less than $39,131 ($44,651 if married filing jointly)? No qualifying children, is your earned income less than $14,820 ($20,330 if married filing jointly)?

 [ ]
Yes.

Go to Step 6.

 [ ]
No.

You can't take the credit.

Step 6. How To Figure the Credit

1. Do you want the IRS to figure the credit for you?

 [ ]
Yes.

See Credit figured by the IRS, later.

 [ ]
No.

Go to Worksheet A.

Definitions and Special Rules

Adopted child.   An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.

Church employees.   Determine how much of the amount on Form 1040, line 7, was also reported on Schedule SE, Section B, line 5a. Subtract that amount from the amount on Form 1040, line 7, and enter the result on line 1 of the worksheet in Step 5 (instead of entering the actual amount from Form 1040, line 7). Be sure to answer “Yes” to question 2 in Step 5.

Clergy.   The following instructions apply to ministers, members of religious orders who have not taken a vow of poverty, and Christian Science practitioners. If you are filing Schedule SE and the amount on line 2 of that schedule includes an amount that was also reported on Form 1040, line 7:
  1. Enter “Clergy” on the dotted line next to Form 1040, line 66a.

  2. Determine how much of the amount on Form 1040, line 7, was also reported on Schedule SE, Section A, line 2, or Section B, line 2.

  3. Subtract that amount from the amount on Form 1040, 
    line 7. Enter the result on line 1 of the worksheet in Step 5 (instead of entering the actual amount from Form 1040, line 7).

  4. Be sure to answer “Yes” to question 2 in Step 5.

Combat pay, nontaxable.   If you were a member of the U.S. Armed Forces who served in a combat zone, certain pay is excluded from your income. See Combat Zone Exclusion in Pub. 3. You can elect to include this pay in your earned income when figuring the EIC. The amount of your nontaxable combat pay should be shown in box 12 of Form(s) W-2 with code Q. If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. In other words, if one of you makes the election, the other one can also make it but doesn't have to.

Credit figured by the IRS.   To have the IRS figure your EIC:
  1. Enter “EIC” on the dotted line next to Form 1040, line 66a.

  2. Be sure you enter the nontaxable combat pay you elect to include in earned income on Form 1040, line 66b. See Combat pay, nontaxable, earlier.

  3. If you have a qualifying child, complete and attach Schedule EIC. If your EIC for a year after 1996 was reduced or disallowed, see Form 8862, who must file, later.

Exception to time lived with you.   Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you. Also see Kidnapped child in the instructions for line 6c and Members of the military, later. A child is considered to have lived with you for more than half of 2015 if the child was born or died in 2015 and your home was this child's home for more than half the time he or she was alive in 2015.

Form 4797 filers.   If the amount on Form 1040, line 13, includes an amount from Form 4797, you must use Worksheet 1 in Pub. 596 to see if you can take the EIC. Otherwise, stop; you can't take the EIC.

Form 8862, who must file.   You must file Form 8862 if your EIC for a year after 1996 was reduced or disallowed for any reason other than a math or clerical error. But do not file Form 8862 if either of the following applies.
  • You filed Form 8862 for another year, the EIC was allowed for that year, and your EIC hasn't been reduced or disallowed again for any reason other than a math or clerical error.

  • You are taking the EIC without a qualifying child and the only reason your EIC was reduced or disallowed in the other year was because it was determined that a child listed on Schedule EIC wasn't your qualifying child.

Also, do not file Form 8862 or take the credit for the:
  • 2 years after the most recent tax year for which there was a final determination that your EIC claim was due to reckless or intentional disregard of the EIC rules, or

  • 10 years after the most recent tax year for which there was a final determination that your EIC claim was due to fraud.

Foster child.   A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. For more details on authorized placement agencies, see Pub. 596.

Married child.   A child who was married at the end of 2015 is a qualifying child only if (a) you can claim him or her as your dependent on Form 1040, line 6c, or (b) you could have claimed him or her as your dependent except for the special rule for Children of divorced or separated parents in the instructions for line 6c.

Members of the military.   If you were on extended active duty outside the United States, your main home is considered to be in the United States during that duty period. Extended active duty is military duty ordered for an indefinite period or for a period of more than 90 days. Once you begin serving extended active duty, you are considered to be on extended active duty even if you do not serve more than 90 days.

Nonresident aliens.   If your filing status is married filing jointly, go to Step 2. Otherwise, stop; you can't take the EIC. Enter “No” on the dotted line next to line 66a.

Permanently and totally disabled.   A person is permanently and totally disabled if, at any time in 2015, the person couldn't engage in any substantial gainful activity because of a physical or mental condition and a doctor has determined that this condition (a) has lasted or can be expected to last continuously for at least a year, or (b) can be expected to lead to death.

Qualifying child of more than one person.   Even if a child meets the conditions to be the qualifying child of more than one person, only one person can claim the child as a qualifying child for all of the following tax benefits, unless the special rule for Children of divorced or separated parents in the instructions for line 6c applies.
  1. Dependency exemption (line 6c).

  2. Child tax credits (lines 52 and 67).

  3. Head of household filing status (line 4).

  4. Credit for child and dependent care expenses (line 49).

  5. Exclusion for dependent care benefits (Form 2441, Part III).

  6. Earned income credit (lines 66a and 66b).

No other person can take any of the six tax benefits just listed unless he or she has a different qualifying child. If you and any other person can claim the child as a qualifying child, the following rules apply.
  • If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent.

  • If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents.

  • If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time in 2015. If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for 2015.

  • If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for 2015.

  • If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for 2015, but only if that person's AGI is higher than the highest AGI of any parent of the child who can claim the child.

Example.

Your daughter meets the conditions to be a qualifying child for both you and your mother. Your daughter doesn't meet the conditions to be a qualifying child of any other person, including her other parent. Under the rules just described, you can claim your daughter as a qualifying child for all of the six tax benefits listed here for which you otherwise qualify. Your mother can't claim any of the six tax benefits listed here unless she has a different qualifying child. However, if your mother's AGI is higher than yours and you do not claim your daughter as a qualifying child, your daughter is the qualifying child of your mother.

  For more details and examples, see Pub. 596.

  If you won't be taking the EIC with a qualifying child, enter “No” on the dotted line next to line 66a. Otherwise, go to Step 3, question 1.

Social security number (SSN).   For the EIC, a valid SSN is a number issued by the Social Security Administration unless “Not Valid for Employment” is printed on the social security card and the number was issued solely to allow the recipient of the SSN to apply for or receive a federally funded benefit. However, if “Valid for Work Only With DHS Authorization” is printed on your social security card, your SSN is valid for EIC purposes only as long as the DHS authorization is still valid.

  To find out how to get an SSN, see Social Security Number (SSN) near the beginning of these instructions. If you won't have an SSN by the date your return is due, see What if You Can't File on Time?

  If you didn't have an SSN by the due date of your 2015 return (including extensions), you can't claim the EIC on either your original or an amended 2015 return, even if you later get an SSN. Also, if a child didn't have an SSN by the due date of your return (including extensions), you can't count that child as a qualifying child in figuring the EIC on either your original or an amended 2015 return, even if that child later gets an SSN.

Student.   A student is a child who during any part of 5 calendar months of 2015 was enrolled as a full-time student at a school, or took a full-time, on-farm training course given by a school or a state, county, or local government agency. A school includes a technical, trade, or mechanical school. It doesn't include an on-the-job training course, correspondence school, or school offering courses only through the Internet.

Welfare benefits, effect of credit on.   Any refund you receive as a result of taking the EIC can't be counted as income when determining if you or anyone else is eligible for benefits or assistance, or how much you or anyone else can receive, under any federal program or under any state or local program financed in whole or in part with federal funds. These programs include Temporary Assistance for Needy Families (TANF), Medicaid, Supplemental Security Income (SSI), and Supplemental Nutrition Assistance Program (food stamps). In addition, when determining eligibility, the refund can't be counted as a resource for at least 12 months after you receive it. Check with your local benefit coordinator to find out if your refund will affect your benefits.

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Worksheet A-Earned Income Credit (EIC)

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Worksheet B-Earned Income Credit (EIC)

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Worksheet B (continued)-Earned Income Credit (EIC)

EIC Table

2015 Earned Income Credit (EIC) Table 
Caution. This is not a tax table.

EIC Table Excerpt Example

1. To find your credit, read down the “At least - But less than” columns and find the line that includes the amount you were told to look up from your EIC Worksheet. 2. Then, go to the column that includes your filing status and the number of qualifying children you have. Enter the credit from that column on your EIC Worksheet. Example. If your filing status is single, you have one qualifying child, and the amount you are looking up from your EIC Worksheet is $2,455, you would enter $842.
  And your filing status is–
If the amount you are looking up from the worksheet is– Single, head of household, or qualifying widow(er) and the number of children you have is– Married filing jointly and the number of children you have is–
  0 1 2 3 0 1 2 3
At least But less than Your credit is– Your credit is–
$1 $50 $2 $9 $10 $11 $2 $9 $10 $11
50 100 6 26 30 34 6 26 30 34
100 150 10 43 50 56 10 43 50 56
150 200 13 60 70 79 13 60 70 79
200 250 17 77 90 101 17 77 90 101
250 300 21 94 110 124 21 94 110 124
300 350 25 111 130 146 25 111 130 146
350 400 29 128 150 169 29 128 150 169
400 450 33 145 170 191 33 145 170 191
450 500 36 162 190 214 36 162 190 214
500 550 40 179 210 236 40 179 210 236
550 600 44 196 230 259 44 196 230 259
600 650 48 213 250 281 48 213 250 281
650 700 52 230 270 304 52 230 270 304
700 750 55 247 290 326 55 247 290 326
750 800 59 264 310 349 59 264 310 349
800 850 63 281 330 371 63 281 330 371
850 900 67 298 350 394 67 298 350 394
900 950 71 315 370 416 71 315 370 416
950 1,000 75 332 390 439 75 332 390 439
1,000 1,050 78 349 410 461 78 349 410 461
1,050 1,100 82 366 430 484 82 366 430 484
1,100 1,150 86 383 450 506 86 383 450 506
1,150 1,200 90 400 470 529 90 400 470 529
1,200 1,250 94 417 490 551 94 417 490 551
1,250 1,300 98 434 510 574 98 434 510 574
1,300 1,350 101 451 530 596 101 451 530 596
1,350 1,400 105 468 550 619 105 468 550 619
1,400 1,450 109 485 570 641 109 485 570 641
1,450 1,500 113 502 590 664 113 502 590 664
1,500 1,550 117 519 610 686 117 519 610 686
1,550 1,600 120 536 630 709 120 536 630 709
1,600 1,650 124 553 650 731 124 553 650 731
1,650 1,700 128 570 670 754 128 570 670 754
1,700 1,750 132 587 690 776 132 587 690 776
1,750 1,800 136 604 710 799 136 604 710 799
1,800 1,850 140 621 730 821 140 621 730 821
1,850 1,900 143 638 750 844 143 638 750 844
1,900 1,950 147 655 770 866 147 655 770 866
1,950 2,000 151 672 790 889 151 672 790 889
2,000 2,050 155 689 810 911 155 689 810 911
2,050 2,100 159 706 830 934 159 706 830 934
2,100 2,150 163 723 850 956 163 723 850 956
2,150 2,200 166 740 870 979 166 740 870 979
2,200 2,250 170 757 890 1,001 170 757 890 1,001
2,250 2,300 174 774 910 1,024 174 774 910 1,024
2,300 2,350 178 791 930 1,046 178 791 930 1,046
2,350 2,400 182 808 950 1,069 182 808 950 1,069
2,400 2,450 186 825 970 1,091 186 825 970 1,091
2,450 2,500 189 842 990 1,114 189 842 990 1,114
2,500 2,550 193 859 1,010 1,136 193 859 1,010 1,136
2,550 2,600 197 876 1,030 1,159 197 876 1,030 1,159
2,600 2,650 201 893 1,050 1,181 201 893 1,050 1,181
2,650 2,700 205 910 1,070 1,204 205 910 1,070 1,204
2,700 2,750 208 927 1,090 1,226 208 927 1,090 1,226
2,750 2,800 212 944 1,110 1,249 212 944 1,110 1,249
2,800 2,850 216 961 1,130 1,271 216 961 1,130 1,271
2,850 2,900 220 978 1,150 1,294 220 978 1,150 1,294
2,900 2,950 224 995 1,170 1,316 224 995 1,170 1,316
2,950 3,000 228 1,012 1,190 1,339 228 1,012 1,190 1,339
3,000 3,050 231 1,029 1,210 1,361 231 1,029 1,210 1,361
3,050 3,100 235 1,046 1,230 1,384 235 1,046 1,230 1,384
3,100 3,150 239 1,063 1,250 1,406 239 1,063 1,250 1,406
3,150 3,200 243 1,080 1,270 1,429 243 1,080 1,270 1,429
3,200 3,250 247 1,097 1,290 1,451 247 1,097 1,290 1,451
3,250 3,300 251 1,114 1,310 1,474 251 1,114 1,310 1,474
3,300 3,350 254 1,131 1,330 1,496 254 1,131 1,330 1,496
3,350 3,400 258 1,148 1,350 1,519 258 1,148 1,350 1,519
3,400 3,450 262 1,165 1,370 1,541 262 1,165 1,370 1,541
3,450 3,500 266 1,182 1,390 1,564 266 1,182 1,390 1,564
3,500 3,550 270 1,199 1,410 1,586 270 1,199 1,410 1,586
3,550 3,600 273 1,216 1,430 1,609 273 1,216 1,430 1,609
3,600 3,650 277 1,233 1,450 1,631 277 1,233 1,450 1,631