Instructions for Form 1040-SS (2017)

U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico)

Section references are to the Internal Revenue Code unless otherwise noted.

2017


General Instructions

Future Developments

For the latest information about developments related to Form 1040-SS and its instructions, such as legislation enacted after they were published, go to IRS.gov/form1040ss.

What's New

Additional child tax credit.

Disaster tax relief was enacted for those impacted by Hurricane Harvey, Irma, or Maria, including provisions that may allow bona fide residents of Puerto Rico to calculate their additional child tax credit differently. See the instructions for Part II, later.

Days of presence.

Due to Hurricane Irma and Hurricane Maria, the 14-day period of absence resulting from a major disaster, which does not count against your days of presence outside a relevant U.S. territory, has been extended to 117 days. For more information see Disaster Relief, later.

Additional disaster tax relief provisions.

See Publication 976, Disaster Relief, for information about other disaster tax relief provisions that are not covered in these instructions. Also go to IRS.gov/DisasterTaxRelief .

Repayment of excess advance payments of the health coverage tax credit.

If you received the benefit of advance payments of the health coverage tax credit, you must file Form 8885, Health Coverage Tax Credit, with your tax return and may be required to report advance payments for months you were not eligible as an additional amount of tax. For more information see the instructions for Part I, Line 6.

Access your online account.

To securely log in to your federal tax account go to IRS.gov/account. You must authenticate your identity. View the amount you owe, review 18 months of payment history, access online payment options, and create or modify an online payment agreement. You can also access your tax records online.

Maximum income subject to social security tax for 2017.

For 2017, the maximum amount of self-employment income subject to social security is $127,200.

Optional methods to figure net earnings.

For 2017, the maximum income for using the optional methods is $5,200.

Reminders

Additional Medicare Tax.

You may be required to pay Additional Medicare Tax. See the instructions for Part I, Line 5, for more information. Also, you may need to report Additional Medicare Tax withheld by your employer. See the instructions for Part I, Line 11, for more information.

Maximum income subject to social security tax for 2018.

For 2018, the maximum amount of self-employment income subject to social security is $128,400.

Due date of return.

File Form 1040-SS by April 17, 2018. The due date is April 17, instead of April 15, because April 15 is on a Sunday, and April 16 is the Emancipation Day holiday in the District of Columbia.

Estimated tax payments.

If you expect to owe self-employment (SE) tax of $1,000 or more for 2018, you may need to make estimated tax payments. Use Form 1040-ES, Estimated Tax for Individuals, to figure your required payments and for the vouchers to send with your payments.

Individual taxpayer identification number (ITIN) renewal.

You may need to renew your ITIN. For more information, see the Instructions for Form W-7, Application for IRS Individual Taxpayer Identification Number.

Additional child tax credit (ACTC).

You must have a social security number (SSN) or an ITIN, and your qualifying child must have an SSN, an adoption taxpayer identification number (ATIN), or an ITIN, by the due date of your return (including extensions), or you can't claim the additional child tax credit on either your original or an amended tax return. See Identification requirements under Part II--Bona Fide Residents of Puerto Rico Claiming Additional Child Tax Credit, later.

Refunds for returns that claim the ACTC.

Refunds for returns claiming the ACTC, will not be issued before February 15, 2018. This delay applies to the entire refund, not just the portion associated with the ACTC. For more information, see IRS.gov/refunds.

Electronic filing.

You can e-file Form 1040-SS. For general information about electronic filing, visit IRS.gov/efile.

Direct Pay.

The best way to pay your taxes is with IRS Direct Pay. It's the safe, easy, and free way to pay from your checking or savings account in one online session. Go to IRS Direct Pay on IRS.gov.

Purpose of Form

This form is for residents of the U.S. Virgin Islands (USVI), Guam, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI), and the Commonwealth of Puerto Rico (Puerto Rico) who are not required to file a U.S. income tax return but who have self-employment income or are eligible to claim certain credits. Residents of Puerto Rico may file Form 1040-PR in place of Form 1040-SS.

One purpose of the form is to report net earnings from self-employment to the United States and, if necessary, pay SE tax on that income. The Social Security Administration (SSA) uses this information to figure your benefits under the social security program. SE tax applies no matter how old you are and even if you already are receiving social security or Medicare benefits.

See Who Must File below for additional uses of this form.

You may also be required to file an income tax return with the government of Guam, American Samoa, the USVI, the CNMI, or Puerto Rico. Check with your local tax office for more details.

Who Must File

You must file Form 1040-SS if you meet all three requirements below.

  1. You, or your spouse if filing a joint return, had net earnings from self-employment (from other than church employee income) of $400 or more (or you had church employee income of $108.28 or more—see Church Employees, later). However, see Exceptions, later.

  2. You do not have to file Form 1040 with the United States.

  3. You are a resident of:

    1. Guam,

    2. American Samoa,

    3. The USVI,

    4. The CNMI, or

    5. Puerto Rico (you can file either Form 1040-PR (in Spanish) or Form 1040-SS).

 

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Even if you have a loss or little income from self-employment, it may benefit you to file Form 1040-SS and use either "optional method" in Part VI. See Part VI—Optional Methods To Figure Net Earnings, later.

Exceptions.

If (2) and (3) above apply, you also must file Form 1040-SS (or Form 1040-PR if you are a resident of Puerto Rico) to:

  • Report and pay household employment taxes;

  • Report and pay employee social security and Medicare tax on: (a) unreported tips, (b) wages from an employer with no social security or Medicare tax withheld, (c) uncollected social security and Medicare tax on tips or group-term life insurance (see the instructions for Part I;Line 6, later);

  • Report and pay the Additional Medicare Tax (see the instructions for Part I, Line 5, later);

  • Claim excess social security tax withheld;

  • Claim the additional child tax credit (bona fide residents of Puerto Rico only, see Days of presence in a U.S. territory, later);

  • Claim the health coverage tax credit or reconcile advance payments of the health coverage tax credit made for you, your spouse, or a dependent (bona fide residents of Puerto Rico only).

 

Who Must Pay SE Tax

Self-Employed Persons

You must pay SE tax if you had net earnings of $400 or more as a self-employed person. If you are in business (farm or nonfarm) for yourself, you are self-employed.

You must also pay SE tax on your share of certain partnership income and your guaranteed payments. See Partnership Income or Loss in the instructions for Part V, later.

Church Employees

If you had church employee income of $108.28 or more, you must pay SE tax on that income. Church employee income is wages you received as an employee (other than as a minister or member of a religious order) of a church or qualified church-controlled organization that has a certificate in effect electing exemption from employer social security and Medicare taxes.

If your only income subject to self-employment tax is church employee income, skip lines 1a through 4b in Part V. Enter "-0-" on line 4c and go to line 5a.

Ministers and Members of Religious Orders

In most cases, you must pay SE tax on salaries and other income for services you performed as a minister, a member of a religious order who has not taken a vow of poverty, or a Christian Science practitioner. But if you filed Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, and received IRS approval, you will be exempt from paying SE tax on those net earnings. If you had no other income subject to SE tax and do not owe any of the taxes listed earlier under Who Must File, you aren't required to file Form 1040-SS. However, if you had other earnings of $400 or more subject to SE tax, see Part V, line A.

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If you have ever filed Form 2031, to elect social security coverage on your earnings as a minister, you cannot revoke that election.

If you must pay SE tax, include this income in Part IV, line 1. But do not report it in Part V, line 5a; it isn't considered church employee income.

Also include in Part IV, line 1:

  • The rental value of a home or allowance for a home furnished to you (including payments for utilities), and

  • The value of meals and lodging provided to you, your spouse, and your dependents for your employer's convenience.

 

However, do not include in Part IV,
line 1:

  • Retirement benefits you received from a church plan after retirement, or

  • The rental value of or allowance for a home furnished to you (including payments for utilities) after retirement.

 

If you were an ordained minister, a member of a religious order who has not taken a vow of poverty, or a Christian Science practitioner, and were employed by a church (congregation) for a salary, do not include that income in Form 1040-SS, Part IV. Instead, figure your SE tax by completing Part V, including on line 2 this income and any rental (parsonage) allowance or the value of meals and lodging provided to you. On the same line, subtract the allowable amount of any unreimbursed business expenses you incurred as a church employee. Attach an explanation.

For details, see Pub. 517.

Members of Recognized Religious Sects

If you have conscientious objections to social security insurance because of your membership in and belief in the teachings of a religious sect recognized as being in existence at all times since December 31, 1950, and which has provided a reasonable level of living for its dependent members, you can request exemption from SE tax by filing Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits. If you filed Form 4029 and have received IRS approval, do not file Form 1040-SS. See Pub. 517 for details.

Employees of Foreign Governments or International Organizations

You must pay SE tax on income you earned as a U.S. citizen or a resident of Puerto Rico employed by a foreign government (or, in certain cases, by a wholly owned instrumentality of a foreign government or an international organization under the International Organizations Immunities Act) for services performed in the United States, Puerto Rico, Guam, American Samoa, the USVI, or the CNMI. Report income from this employment onPart IV, line 1. Enter the net amount from Part IV, line 27, on Part V, line 2. If you performed services elsewhere as an employee of a foreign government or an international organization, those earnings are exempt from SE tax.

Commonwealth or Territory Residents Living Abroad

In most cases, if you are a bona fide resident of Guam, American Samoa, the USVI, the CNMI, or Puerto Rico living outside the CNMI or territories, you must still pay any applicable SE Tax.

Exception.

The United States has social security agreements with many countries to eliminate dual taxes under two social security systems. Under these agreements, in most cases ,you must pay social security and Medicare taxes only to the country you live in.

If you have questions about international social security agreements, you can:

  1. Visit the SSA International Programs website at SSA.gov/international;

  2. Call the SSA Office of International Programs if you speak English at 410-965-3322 (not toll free) for questions about the agreements; or

  3. Write to:

    Social Security Administration
    Office of International Programs
    P.O. Box 17741
    Baltimore, MD 21235-7741 USA.

    Do not send Form 1040-SS to this address. Instead, see Where To File , later.

 

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Even if you do not have to pay SE tax because of a social security agreement, you may still have to file a tax return with the Internal Revenue Service.

Chapter 11 Bankruptcy Cases

While you are a debtor in a Chapter 11 bankruptcy case, your net profit or loss from self-employment will be included on the income tax return (Form 1041) of the bankruptcy estate. However, you—not the bankruptcy estate—are responsible for paying self-employment tax on your net earnings from self-employment.

Enter on the dotted line next to line 3 of Form 1040-SS, Part V, "Chap. 11 bankruptcy income" and the amount of your net profit or (loss). Combine that amount with the total of lines 1a, 1b, and 2 (if any) and enter the result on line 3.

For other reporting requirements, see the Instructions for Form 1040.

More Than One Business

If you were a farmer and had at least one other business or you had two or more nonfarm businesses, your net earnings from self-employment are the combined net earnings from all of your businesses. If you had a loss in one business, it reduces the income from another. Complete and file only one Form 1040-SS for any 1 year. Attach a separate Part III or Part IV for each trade or business, and combine the net earnings in a single Part V.

Joint returns.

If both you and your spouse have self-employment income from separate farm or nonfarm businesses, each of you must complete and file a separate Part III or Part IV. Be sure to enter at the top of each Part III or Part IV the name and SSN of the spouse who owns the business. Each of you must also complete a separate Part V. Attach these pages to a single Form 1040-SS.

Business Owned and Operated by Spouses

If you and your spouse jointly own and operate an unincorporated business (farm or nonfarm) and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. Do not use Part III or Part IV. Instead, file the appropriate partnership return.

Exception—Qualified joint venture (QJV).


If you and your spouse materially participate (see Material participation in the 2017 Instructions for Schedule C (Form 1040)) as the only members of a jointly owned and operated business, and you file a joint Form 1040-SS for the tax year, you can make a joint election to be taxed as a QJV instead of a partnership. To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. Each of you must file a separate Part III or Part IV, as well as a separate Part V. On each line of your separate Part III or Part IV, you must enter your share of the applicable income, deduction, or loss. For complete information on this election, see the 2017 Instructions for Schedule E (Form 1040).

For more information on QJVs, go to IRS.gov and enter "qualified joint venture" in the search box.

Rental real estate business.

If you and your spouse make the QJV election for your rental real estate business, in most cases the income isn't subject to SE tax (for an exception, see item 3 under Other Income and Losses Included in Net Earnings From Self-Employment in the instructions for Part V, later).

If the QJV election is made for a farm rental business that isn't included in self-employment, the income isn't subject to SE tax. Do not include the income on Form 1040-SS. Depending on the source of the income (possession, U.S. source, or other foreign source), you may need to file other tax forms. See Pub. 570, and Form 4835, for more information.

Exception—Community income.

If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U.S. possession, the income and deductions are reported based on the following.

  • If only one spouse participates in the business, all of the income from that business is the self-employment earnings of the spouse who carried on the business.

  • If both spouses participate, the income and deductions are allocated to the spouses based on their distributive shares.

  • If either or both you and your spouse are partners in a partnership, see Partnership Income or Loss in the instructions for Part V, later.

  • If you and your spouse elected to treat the business as a QJV, see Exception—Qualified joint venture (QJV), earlier.

 

Where To File

If you are enclosing a payment, send your Form 1040-SS to:

Department of the Treasury
P. O. Box 1303
Charlotte, NC 28201-1303

 

If you aren't enclosing a payment, send your Form 1040-SS to:

Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0215

 

When To File

If you file on a calendar year basis, file by April 17, 2018.

If you file on a fiscal year basis, file by the 15th day of the 4th month after the close of your fiscal year.

Extension of Time To File

If you can't file Form 1040-SS by the due date, you can get an extension of time to file the form. In some cases, you can get an extension of time to file and pay any tax due.

Bona fide residents of Puerto Rico.

You can apply for an automatic 6-month extension of time to file Form 1040-SS (until October 15, 2018, for calendar year taxpayers). To get this automatic extension, you must file Form 4868, by the regular due date of your return (April 17, 2018, for calendar year taxpayers). You can file Form 4868 either by paper or electronically through IRS e-file. For details, see the instructions on Form 4868.

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This 6-month extension to file does not extend the time to pay your tax. Any interest due on unpaid taxes is calculated from the original due date of the return.

Bona fide residents of American Samoa, the CNMI, Guam, or the USVI.

You can apply for the automatic 6-month extension described above, or you can receive an automatic 2-month extension and then apply for an additional 4-month extension if you still need more time.

Automatic 2-month extension.

You are allowed an automatic 2-month extension to file your return and pay your tax if you are outside the United States and Puerto Rico on the day Form 1040-SS is due (April 17, 2018, for calendar year taxpayers). Although you have an extension of time to pay your tax, interest on any unpaid tax will be charged from the original due date of the return.

To get this automatic extension, you must file Form 1040-SS by the extended due date (June 15, 2018, for calendar year taxpayers) and attach a statement explaining that on the regular due date of your return you were a bona fide resident of American Samoa, the CNMI, Guam, or the USVI.

Additional 4-month extension.

If you can't file your return within the automatic 2-month extension period, in most cases you can get an additional 4 months to file your return, for a total of 6 months. File Form 4868 by the extended due date allowed by the 2-month extension (June 15, 2018, for calendar year taxpayers). Follow the instructions for completing Form 4868, and be sure to check the box on line 8.

Unlike the original 2-month extension, the additional 4 months of time to file is not an extension of time to pay. You must make an accurate estimate of your tax based on the information available to you. If you find you can't pay the full amount due with Form 4868, you can still get the extension. You will owe interest on the unpaid amount from the original due date of the return.

Where to file extension requests.


If you are enclosing a payment, send Form 4868 with your payment to:

Department of the Treasury
Internal Revenue Service
P.O. Box 1302
Charlotte, NC 28201-1302

 

If you aren't enclosing a payment, send Form 4868 to:

Department of the Treasury
Internal Revenue Service
Austin, TX 73301-0045

 

Disaster Relief

Disaster tax relief was enacted for those impacted by Hurricane Harvey, Irma, or Maria. Several provisions have a direct affect on bona fide residents of Puerto Rico and the U.S. Virgin Islands.

Days of presence in a U.S. territory.

Generally, you are considered to be present in a relevant possession on any day you are outside the relevant possession because you leave or are unable to return during any 14-day period within which a major disaster occurs in the relevant possession for which a Federal Emergency Management Agency (FEMA) notice or a federal declaration of a major disaster is issued in the Federal register.

Due to Hurricane Irma and Hurricane Maria, the 14-day period of absence resulting from a major disaster, which does not count against your days of presence outside a relevant U.S. territory, has been extended to 117 days effective beginning September 6, 2017, and ending December 31, 2017.

Therefore, an individual who is outside of Puerto Rico or the U.S. Virgin Islands on any day during this 117-day period will be treated as leaving or being unable to return to the relevant U.S. territory as a result of Hurricanes Irma or Maria, and will not lose their status as a bona fide resident of Puerto Rico or the U.S. Virgin Islands during this period. For more information, see Notice 2017-56.

Additional child tax credit (ACTC).

As part of the disaster tax relief enacted for those impacted by Hurricane Irma or Hurricane Maria, certain bona fide residents of Puerto Rico may elect to calculate their ACTC differently.

Hurricane disaster relief.

You may be able to increase your ACTC by electing to use your withheld 2016 social security, Medicare, and Additional Medicare tax, one-half of your 2016 self-employment tax, and any 2016 social security tax amounts listed under the instructions for Part I, line 6, to figure your ACTC. You can make this election if:

  1. Your total withheld 2016 social security, Medicare, Additional Medicare tax, one-half of your 2016 self-employment tax, and any 2016 social security tax amounts listed under the instructions for Part I, line 6, are greater than your withheld 2017 social security, Medicare, Additional Medicare tax, one-half of your 2017 self-employment tax, and any 2017 social security tax amounts listed under Part I, line 6, and

  2. On the date listed, one of the following applied to your main home or the main home of your spouse if filing jointly:

    1. On September 4, 2017, the home was located in an area of Puerto Rico later designated by FEMA as warranting individual or individual and public assistance due to Hurricane Irma, or

    2. On September 4, 2017, the home was located in another area of Puerto Rico, and you (or your spouse if filing jointly) were displaced from the home because of Hurricane Irma, or

    3. On September 16, 2017, the home was located in an area of Puerto Rico later designated by FEMA as warranting individual or individual and public assistance due to Hurricane Maria, or

    4. On September 16, 2017, the home was located in another area of Puerto Rico, and you (or your spouse if filing jointly) were displaced from the home because of Hurricane Maria.

 

Note.

Residents of the U.S. Virgin Islands whose main home was in the disaster area for Hurricanes Irma and/or Maria may be eligible to apply the ACTC rules described above if their tax home was in Puerto Rico. See Pub. 570 for a definition of tax home.

 

For more information on claiming the ACTC, see the instructions for Part II, later.

Publication 976.

See Pub. 976, Disaster Relief, for more information.

Specific Instructions

Fiscal Year Filers

If your tax year is a fiscal year, use the tax rate and earnings base that apply at the time the fiscal year begins. Do not prorate the tax or earnings base for a fiscal year that overlaps the date of a rate or earnings base change.

Name and SSN

To ensure proper credit to your social security account, enter your name and SSN, and your spouse's if filing a joint return, exactly as shown on your social security card. If you do not have an SSN, get Form SS-5, Application for a Social Security Card, from an SSA district office or online at SSA.gov/forms/ss-5.pdf.

If you are not eligible for an SSN, you must apply for an ITIN. For more information on ITINs, go to IRS.gov/itin. Also, see Form W-7 and its instructions.

Part I—Total Tax and Credits

Line 1

Check the filing status that applies to you.

Single.

Your filing status is single if:

  1. On the last day of the year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree, or

  2. You meet all of the following conditions.

    1. You lived apart from your spouse for the last 6 months of 2017. Temporary absences for special circumstances, such as business, medical care, school, or military service, count as time lived in the home.

    2. You file a separate return from your spouse.

    3. You paid over half the cost of keeping up your home for 2017.

    4. Your home was the main home of your child, adopted child, stepchild, or eligible foster child for more than half of 2017. 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, a child is considered to have lived with you for more than half of 2017 if the child was born or died in 2017 and your home was the child's home for more than half of the time he or she was alive.

    5. If you filed Form 1040, you could claim the child as your dependent or could claim the child except that the child's other parent can claim the child under the rules for children of divorced or separated parents (see Pub. 501).

 

Married filing jointly.

You can choose this filing status if you were married at the end of 2017 and both you and your spouse agree to file a joint return. You can also choose this filing status if your spouse died in 2017 and you did not remarry in 2017.

If you choose to file a joint return, check the box for married filing jointly and be sure to include your spouse's name and SSN on the lines provided below your name and SSN. If your spouse also had self-employment income, complete and attach a separate Part V and, if applicable, Part VI. If necessary, attach a separate Part III or Part IV for your spouse's farm or nonfarm business.

Joint and several tax liability.

If you file a joint return, both you and your spouse generally are responsible for the tax and any interest or penalties due on the return. This means that if one spouse doesn't pay the tax due, the other may have to.

However, you may qualify for relief from an existing tax liability on your joint return if:

  • There is an understatement of the amount of tax because your spouse omitted income or claimed false deductions or credits;

  • You are divorced, separated, or no longer living with your spouse; or

  • Given all the facts and circumstances, it would not be fair to hold you liable for the tax.

 

File Form 8857 to request relief. Some requests for relief may need to be filed within two years of the date on which the IRS first attempted to collect the tax from you. For more information, go to IRS.gov/InnocentSpouse.

Married filing separately.

You can choose this filing status if you were married at the end of 2017. This method may benefit you if you want to be responsible only for your own tax.

Line 4

If either of the following applies, see Schedule H (Form 1040), and its instructions to find out if you owe household employment taxes.

  • You paid any one household employee cash wages of $2,000 or more in 2017.

  • You paid total cash wages of $1,000 or more in any calendar quarter of 2016 or 2017 to all household employees.

 

Line 5

Enter the total Additional Medicare Tax from line 18 of Form 8959 on line 5. Attach Form 8959. See Form 8959 and the Instructions for Form 8959 for more information.

Line 6

Include the following taxes in the line 6 total.

Employee social security and Medicare tax on tips not reported to employer.

Complete Form 4137 if you received cash and charge tips of $20 or more in a calendar month and did not report all of those tips to your employer. On the dotted line next to line 6, enter "Tax on Tips," and the amount of tax due (from Form 4137, line 13). Be sure to include this tax in the total for line 6. Attach to Form 1040-SS the completed Form 4137.

Uncollected employee social security and Medicare tax on tips.

If you did not have enough wages to cover the social security and Medicare tax due on tips you reported to your employer, the amount of tax due should be identified with codes A and B in box 12 of your Form W-2AS, W-2CM, W-2GU, or W-2VI; or entered in boxes 22 and 23 of your Form 499R-2/W-2PR. Include this tax in the total for line 6. Enter the amount of this tax and "Uncollected Tax" on the dotted line next to line 6.

Uncollected employee social security and Medicare tax on group-term life insurance.

If you had group-term life insurance through a former employer, you may have to pay social security and Medicare tax on part of the cost of the life insurance. The amount of tax due should be identified with codes M and N in box 12 of your Form W-2AS, W-2CM, W-2GU, or W-2VI. If you are a bona fide resident of Puerto Rico, contact your employer for this amount. Include this tax in the total for line 6. Enter the amount of this tax and "Uncollected Tax" on the dotted line next to line 6.

Uncollected employee social security and Medicare tax on wages.

If you are an employee who received wages from an employer who did not withhold social security and Medicare tax from your wages, complete Form 8919 to figure your share of the unreported tax. Enter the amount of tax due (from Form 8919, line 13) and "Uncollected Tax" on the dotted line next to line 6, and include this tax in the total for line 6. Attach to Form 1040-SS the completed Form 8919.

Repayment of excess advance payments of the health coverage tax credit.

If you received the benefit of advance payments of the health coverage tax credit for months you were not eligible, the amount on line 5 of Form 8885, may be negative. On the dotted line next to line 6, enter "HCTC" and the additional tax as a positive amount. Include this tax in the total for line 6. Attach the completed Form 8885 to Form 1040-SS.

Line 7

Enter any estimated tax payments you made for 2017 including any overpayment from your 2016 return that you applied to your 2017 estimated tax. If you or your spouse paid separate estimated tax but are now filing a joint return, add the amounts you each paid and enter the total on line 7. If you and your spouse paid joint estimated tax but are now filing separate 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 2017. For an example of how to do this, see Pub. 505.

Line 8

If you, or your spouse if filing a joint return, had more than one employer for 2017, and total wages of more than $127,200, too much social security tax may have been withheld. You can take a credit on this line for the amount withheld in excess of $7,886.40. But if any one employer withheld more than $7,886.40, you must ask that employer to refund the excess to you. You can't claim it on Form 1040-SS. Figure this amount separately for you and your spouse. You must attach Forms W-2AS, W-2CM, W-2GU, W-2VI, or 499R-2/W-2PR. See Pub. 505 for more information.

Line 10

If, during 2017, you were a bona fide resident of Puerto Rico and an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, Pension Benefit Guaranty Corporation (PBGC) payee, or qualifying family member, see the 2017 Form 8885, and its instructions to figure the amount of your credit, if any.

See chapter 1 of Pub. 570, for the bona fide residency rules.

Line 11

Add lines 7 through 10. Enter the total on line 11.

Additional Medicare Tax withheld.

If you had Additional Medicare Tax withheld by your employer in 2017, include the amount shown on Form 8959, line 24, in the total for line 11. On the dotted line next to line 11, enter "Form 8959" and show the amount. Attach Form 8959. See Form 8959 and the Instructions for Form 8959 for more information.

Amount paid with request for extension of time to file.

If you got an automatic extension of time to file Form 1040-SS by filing Form 4868 or by making a payment, enter the amount of the payment or any amount you paid with Form 4868. If you paid by credit or debit card, do not include on line 11 the convenience fee you were charged. On the dotted line next to line 11, enter "Form 4868" and show the amount paid.

Lines 13a Through 13d

If you want us to directly deposit the amount shown on line 13a to your checking or savings account at a U.S. bank or other U.S. financial institution (such as a mutual fund, brokerage firm, or credit union):

  • Check the box on line 13a and attach Form 8888, if you want to split the direct deposit of your refund into more than one account or use all or part of your refund to buy paper Series I savings bonds; or

  • Complete lines 13b through 13d if you want your refund deposited to only one account.

 

If you do not want your refund directly deposited to your account, do not check the box on line 13a. Draw a line through the boxes on lines 13b and 13d. We will send you a check instead.

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The IRS isn't responsible for a lost refund if you enter the wrong account information. Check with your financial institution to make sure your direct deposit will be accepted and to get the correct routing and account numbers.

Do not request a deposit of your refund to an account that isn't in your name (such as your tax preparer's own account).

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If you file a joint return and check the box on line 13a and attach Form 8888 or fill in lines 13b through 13d, your spouse may get at least part of the refund.

TreasuryDirect®.

You can request a deposit of your refund (or part of it) to a TreasuryDirect® online account to buy U.S. Treasury marketable securities and savings bonds. For more information, go to Treasurydirect.gov.

Form 8888.

You can have your refund directly deposited into more than one account or use it to buy up to $5,000 in paper Series I savings bonds. You do not need a TreasuryDirect® account to do this. See the Instructions for Form 8888 for more details.

Line 13b

The routing number for your financial institution must be nine digits. The first two digits must be 01 through 12 or 21 through 32. Otherwise, the direct deposit will be rejected and a check sent instead.

Ask your financial institution for the correct routing number to enter on line 13b if:

  • The routing number on a deposit slip is different from the routing number on your checks,

  • Your deposit is to a savings account that doesn't allow you to write checks, or

  • Your checks state they are payable through a financial institution different from the one at which you have your checking account.

 

Line 13c

Check the appropriate box for the type of account. Do not check more than one box. You must check the correct box to ensure your deposit is accepted. For a TreasuryDirect® online account, check the "Savings" box.

Line 13d

The account number can be up to 17 characters (both numbers and letters). Include hyphens but omit spaces and special symbols. Enter the number from left to right and leave any unused boxes blank. Do not include the check number.

If the direct deposit to your account(s) is different from the amount you expected, you will receive an explanation in the mail about 2 weeks after your refund is deposited.

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If you are asking to have a joint refund deposited to an individual account and your financial institution won’t allow this, your direct deposit will be rejected back to the IRS. The IRS isn’t responsible if a financial institution rejects a direct deposit.

Line 14

Enter on line 14 the amount, if any, of the overpayment on line 12 you want applied to your 2018 estimated tax. The election to apply part or all of the overpaid amount to your 2018 estimated tax can't be changed later.

Amount You Owe

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To avoid interest and penalties, pay your taxes in full by April 17, 2018. You do not have to pay if line 15 is under $1.

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Do not include any estimated tax payment for 2018 in this payment. Instead, make the estimated tax payment separately.

Line 15—Amount You Owe

IRS offers several payment options. You can pay online, by phone, mobile device, cash (maximum $1000 per day and per transaction), check, or money order. Go to IRS.gov/payments for payment options.

Pay Online

IRS offers an electronic payment option that is right for you. Paying online is convenient and secure and helps make sure we get your payments on time. To pay your taxes online or for more information, go to IRS.gov/payments. You can pay using any of the following methods.

  • IRS Direct Pay for online transfers directly from your checking or savings account at no cost to you, go to IRS.gov/payments/direct-pay.

  • Pay by Card. To pay by debit or credit card go to IRS.gov/payments/pay-taxes-by-credit-or-debit-card. A convenience fee is charged by these service providers.

  • Electronic Funds Withdrawal (EFW) is an integrated e-file/e-pay option offered when filing your federal taxes electronically using tax preparation software, through a tax professional, or the IRS at IRS.gov/payments/pay-taxes-by-electronic-funds-withdrawal.

  • Online Payment Agreement. If you cannot pay in full by the due date of your tax return you can apply for an online monthly installment agreement at IRS.gov/payments/online-payment-agreement-application. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved. A user fee is charged.

  • IRS2Go is the mobile application of the IRS; you can access Direct Pay or Pay By Card by downloading the application.

 

Pay by Phone

Paying by phone is another safe and secure method of paying electronically. Use one of the following methods:

  1. Call one of the debit or credit card service providers, or

  2. Use the Electronic Federal Tax Payment System (EFTPS).

 

Debit or credit card.

Call one of our service providers. Each charges a fee that varies by provider, card type, and payment amount.

WorldPay US, Inc.
1-844-PAY-TAX-8TM (1-844-729-8298)
PayUSAtax.com

 

Link2Gov Corporation
1-888-PAY-1040TM (1-888-729-1040)
PAY1040.com

 

EFTPS.

To use EFTPS, you must be enrolled either online or have an enrollment form mailed to you. To make a payment using EFTPS, call 1-800-555-4477 (English) or 1-800-244-4829 (Español). People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-733-4829. For more information about EFTPS, go to IRS.gov/payments or Eftps.gov.

Mobile Device

To pay through your mobile device, download the IRS2Go app.

Pay by Check or Money Order

Before submitting a payment through the mail, please consider alternative methods. One of our safe, quick, and easy electronic payment options might be right for you. If you choose to mail a tax payment make your check or money order payable to "United States Treasury" for the full amount due. Do not send cash. Do not attach the payment to your return. Write "2017 Form 1040-SS," your name, address, daytime phone number, and SSN on your payment. If you are filing a joint return, enter the SSN shown first on your tax return.

To help us process your payment, enter the amount on the right side of the check like this: $ XXX.XX. Do not use dashes or lines (for example, do not enter "$ XXX–" or "$ XXXxx/100 ").

Mail your 2017 Form 1040-SS and payment to the address shown under Where To File, earlier.

Bad check or payment.

The penalty for writing a bad check to the IRS is $25 or 2% of the check, whichever is more. However, if the amount of the check is less than $25, the penalty equals the amount of the check. This penalty also applies to other forms of payment if the IRS doesn't receive the funds. See Tax Topic 206 at IRS.gov/taxtopics.

What If You Can't Pay?

If you can't pay the full amount shown on line 15 when you file, you can ask for:

  • An installment agreement, or

  • An extension of time to pay.

 

Installment agreement.

Under an installment agreement, you can pay all or part of the tax you owe in monthly installments. However, even if an installment agreement is granted, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 17, 2018. You must also pay a fee. To limit the interest and penalty charges, pay as much of the tax as possible when you file. But before requesting an installment agreement, you should consider other less costly alternatives, such as a bank loan or credit card payment.

To ask for an installment agreement, you can apply online or use Form 9465. To apply online, go to Apply for an Online Payment Agreement.

Extension of time to pay.

If paying the tax when it is due would cause you an undue hardship, you can ask for an extension of time to pay by filing Form 1127 by April 17, 2018. In most cases, an extension won't be granted for more than 6 months. You will be charged interest on the tax not paid by April 15, 2018. You must pay the tax before the extension runs out. Penalties and interest will be imposed until taxes are paid in full. To get Form 1127, and the most up-to-date information, go to IRS.gov/form1127.

Part II—Bona Fide Residents of Puerto Rico Claiming Additional Child Tax Credit

If you were a bona fide resident of Puerto Rico for the tax year and you qualify to claim the additional child tax credit, you must list each qualifying child (defined later) in Part I, line 2. Also complete Part II and the Additional Child Tax Credit Worksheet—Part II, Line 3, later, to figure the amount of your credit.

If you take the additional child tax credit even though you aren't eligible and it is determined that your error is due to reckless or intentional disregard of the additional child tax credit rules, you won't be allowed to take the child tax credit or the additional child tax credit for 2 years even if you are otherwise eligible to do so. If you fraudulently take the additional child tax credit, you won't be allowed to take either credit for 10 years. See the Form 8862 and its instructions for more information. You may also have to pay penalties.

Disaster tax relief.

If you were a resident of Puerto Rico affected by Hurricanes Irma or Maria, you can elect to calculate your ACTC based on your withheld 2016 social security, Medicare, Additional Medicare tax, one-half of your 2016 self-employment tax, and any social security tax amounts listed under the instructions for Part I, line 6. See Additional child tax credit (ACTC) under Disaster Relief, for the requirements.

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If you make the election, you must complete the Additional Child Tax Credit Worksheet—Part II, Line 3, later. Also, write "Hurricane Irma" and/or "Hurricane Maria" at the top of page 1 of Form 1040-SS.

Qualifying for the Credit

You may be able to claim the additional child tax credit for 2017 if all of the following apply.

  • You were a bona fide resident of Puerto Rico (see Pub. 570). Also, see Days of presence in a U.S. territory, earlier.

  • Social security and Medicare taxes were withheld from your wages or you paid SE tax.

  • Neither you nor your spouse, if filing a joint return, can be claimed as a dependent on someone else's U.S. income tax return.

  • You had three or more qualifying children (defined below).

 

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You must have three or more qualifying children to claim the additional child tax credit.

Qualifying child.

A qualifying child for purposes of the additional child tax credit is a child who:

Note.

Your adopted child is always treated as your own child. A child lawfully placed for legal adoption is treated the same as an adopted child.

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

  2. Was under 17 at the end of 2017.

  3. Was younger than you (or your spouse, if filing jointly) or was permanently and totally disabled (see Age Test in Pub. 501).

  4. Did not provide over half of his or her own support for 2017.

  5. Lived with you for more than half of 2017. If the child did not live with you for the required time, see Residency Test in Pub. 501.

  6. Is not filing a joint return for 2017 or is filing a joint return for 2017 only to claim a refund of estimated or withheld taxes. See examples under Joint Return Test (To Be a Qualifying Child) in Pub. 501.

  7. Was a U.S. citizen, U.S. national, or a U.S. resident alien.

 

Note.

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 an exception and may be a qualifying child although the child is a nonresident alien.

 

Information about your qualifying child.

In Part I, line 2, enter each qualifying child's name, identifying number (SSN, ITIN or ATIN), and relationship to you. If you have more than six qualifying children, attach a statement to Form 1040-SS with the required information. If the child meets the conditions to be a qualifying child of any other person (other than your spouse if filing jointly) for 2017, see Qualifying Child of More Than One Person in Pub. 501.

Identification requirements.

If you didn't have an SSN (or ITIN), by the due date of your 2017 Form 1040-SS (including extensions), you can't claim the additional child tax credit on either your original or an amended 2017 Form 1040-SS, even if you later get an SSN (or ITIN). Also, no additional child tax credit is allowed on your original or an amended 2017 Form 1040-SS with respect to a child who didn't have an SSN, ATIN, or ITIN by the due date of your 2017 Form 1040-SS (including extensions), even if that child later gets one of those numbers.

If you apply for an ATIN or an ITIN on or before the due date of your 2017 return (including extensions) and the IRS issues you an ATIN or an ITIN as a result of the application, the IRS will consider your ATIN or ITIN as issued on or before the due date of your return.

Line 1

For purposes of figuring the additional child tax credit, you must report all of your income derived from sources within Puerto Rico that is excluded from U.S. tax because you were a bona fide resident of Puerto Rico (see Days of presence in a U.S. territory, earlier).

This includes items such as wages, interest, dividends, taxable pensions and annuities, and taxable social security benefits. Also include any profit or (loss) from Part III, line 36, and Part IV, line 27. For more information on these and other types of income to include on line 1, see the Form 1040 instructions. See Pub. 570, for the rules to use in determining your Puerto Rico source income.

Line 2

Enter the amount of your 2017 withheld social security, Medicare, and Additional Medicare taxes from Puerto Rico Form(s) 499R-2/W-2PR, boxes 18 and 20. If married filing jointly, include your spouse’s amounts with yours.

For information about Form 499R-2/W-2PR go to the Departamento de Hacienda website at Hacienda.gobierno.pr/.

Disaster tax relief.

You can elect to use your withheld 2016 social security, Medicare, and Additional Medicare taxes to determine the ACTC (see Additional child tax credit (ACTC) under Disaster Relief, earlier).

Complete the Additional Child Tax Credit Worksheet on the next page. If you have an amount on line 19 of the worksheet, and line 13 of the worksheet is greater than line 10, to the left of the entry space for line 2, enter "PYET" and your withheld 2016 social security, Medicare, and Additional Medicare tax from Part II, line 2, of your 2016 Form 1040-SS.

Do not enter this amount in the entry space for line 2.

Line 3

Use the Additional Child Tax Credit Worksheet—Part II, Line 3 to figure your additional child tax credit. Enter the amount from line 19 of the worksheet on Part II, line 3.

Additional Child Tax Credit Worksheet—Part II, Line 3

1. Do you have three or more qualifying children?    
  No. Stop. You can't claim the credit.
Yes. Go to line 2.
   
2. Number of qualifying children: _______ × $1,000. Enter the result 2.  
3. Enter the amount from Part II, line 1 3.      
4. Enter the amount shown below for your filing status 4.      
  • Married filing jointly — $110,000
• Single — $75,000
• Married filing separately — $55,000
     
5. Is the amount on line 3 more than the amount on line 4?      
  No. Leave line 5 blank. Enter -0- on line 6, and go to line 7.
Yes. Subtract line 4 from line 3. If the result isn't a multiple of
$1,000, increase it to the next multiple of $1,000 (for example,
increase $425 to $1,000, increase $1,025 to $2,000, etc.)
5.      
6. Multiply the amount on line 5 by 5% (0.05). Enter the result 6.  
7. Is the amount on line 2 more than the amount on line 6?    
 
No. Stop. You can't claim the credit.
Yes. Subtract line 6 from line 2
7.  
8. Enter the total, if any, for 2017:
• One-half of Part V, line 12, self-employment tax plus
• One-half of the Additional Medicare Tax you paid on
self-employment income (2017 Form 8959, line 13 )
8.      
9. Enter the total, if any, for 2017:
• Amount from Part II, line 2, plus
• Employee social security and Medicare tax on tips not reported to employer
from your 2017 Form 4137 and shown on the dotted line next to Part I, line 6, plus
• Uncollected employee social security and Medicare tax on wages from
your 2017 Form 8919 shown on the dotted line next to Part I, line 6, plus
• Uncollected employee social security tax and Medicare tax on tips and
group-term life insurance (see instructions for Part I, line 6) shown on
the dotted line next to Part I, line 6, plus
• Amount on your 2017 Form 8959, line 7
9.      
10. Add lines 8 and 9 10.  
  Caution. If you are a qualified Hurricane Irma or Hurricane Maria individual (see instructions), and you qualify to determine your additional child tax credit using certain 2016 amounts, complete lines 11 through 13. Otherwise, take the amount from line 10 and enter it on line 14.
11. Enter the total, if any, for 2016:
  • One‐half of your self‐employment tax from Part V, line 12, of your 2016 Form 1040-SS plus

  • One‐half of the Additional Medicare Tax you paid on self‐employment income (2016 Form 8959, line 13)

11.      
12. Enter the total, if any, for 2016:
  • Amount from Part II, line 2 of your 2016 Form 1040-SS, plus

  • Employee social security and Medicare tax on tips not reported to employer from your 2016 Form 4137 and shown on the dotted line next to Part I, line 6 of your 2016 Form 1040-SS, plus

  • Uncollected employee social security and Medicare tax on wages from your 2016 Form 8919 shown on the dotted line next to Part I, line 6 of your 2016 Form 1040-SS, plus

  • Uncollected employee social security and Medicare tax on tips and group‐term life insurance (see instructions for Part I, line 6) shown on the dotted line next to Part I, line 6 of your 2016 Form 1040-SS, plus

  • Amount on your 2016 Form 8959, line 7

12.      
13. Add lines 11 and 12. 13.  
14. Enter the larger of line 10 or line 13 14.  
15. If line 13 is larger than line 10, enter the amount, if any, of Additional Medicare Tax withheld from line 22 of your 2016 Form 8959. If line 10 is larger than line 13, enter the amount from line 22 of your 2017 Form 8959 (see instructions) 15.  
16. Subtract line 15 from line 14 16.  
17. If line 13 is larger than line 10, enter the amount, if any, from Part I, line 8 of your 2016 Form 1040-SS. If line 10 is larger than line 13, enter the amount from Part I, line 8 of your 2017 Form 1040-SS (see instructions) 17.  
18. Is the amount on line 16 more than the amount on line 17?
No. Stop. You can't claim the credit.
Yes. Subtract line 17 from line 16
18.  
19. Additional child tax credit. Enter the smaller of line 7 or line 18 here and on
Form 1040-SS, Part II, line 3
19.  

 

Disaster tax relief.

You can elect to use your withheld 2016 social security, Medicare, Additional Medicare taxes, one-half of your 2016 self-employment tax, and any 2016 social security tax amounts listed under the instructions for Part I, line 6, to determine the ACTC (see Additional child tax credit (ACTC) under Disaster Relief, earlier).

Complete the Additional Child Tax Credit Worksheet on the next page. If you have an amount on line 19 of the worksheet, and line 13 of the worksheet is greater than line 10, to the left of the entry space for line 3, enter "PYSET" and 50% (0.5) of your 2016 self-employment tax from Part V, line 12, of your 2016 Form 1040-SS.

Do not enter this amount in the entry space for line 3.

Part III—Profit or Loss From Farming

For assistance with Part III (Profit or Loss From Farming), see the 2017 Instructions for Schedule F (Form 1040), and Pub. 225.

Accounting Methods

The accounting method you used to record your farm income determines whether you complete, in addition to Section B, Section A or C.

Cash method.

Include in income both the cash actually or constructively received and the fair market value of goods or other property you received. In most cases, you deduct your expenses when you pay them.

Accrual method.

Include your income in the year you earned it. It doesn't matter when you get it. Deduct your expenses when you incur them.

Section A or C—Sales of Livestock

Form 4797 is used to report sales of livestock held for draft, breeding, sport, or dairy purposes, and is attached to Form 1040. This income is taxable, but isn't subject to SE tax. You should check to see if this additional amount of gross income will require you to file Form 1040 instead of Form 1040-SS.

Line 12

If you claim any car or truck expenses (actual or the standard mileage rate), you must provide the information requested in Part V of Form 4562. Be sure to attach Form 4562 to your return.

Line 34

List your other expenses and the amounts on lines 34a through 34e. If you cannot enter all of the expenses on lines 34a through 34e, enter the first four expenses on lines 34a through 34d. On line 34e, enter "Other" and the total of the expenses not already included on lines 34a through 34d.

Part IV—Profit or Loss From Business (Sole Proprietorship)

For assistance with Part IV (Profit or Loss From Business (Sole Proprietorship)), see the 2017 Instructions for Schedule C (Form 1040), Profit or Loss From Business, and Pub. 334.

Line 7

If you claim any car or truck expenses (actual or the standard mileage rate), you must provide the information requested in Part V of Form 4562. Be sure to attach Form 4562 to your return.

Line 25a

List your other expenses and the amounts on line 25a. If you cannot enter all of your other expenses on the lines provided, enter "Other" and the total of the expenses not already listed on line 25a on the last line under line 25a. Combine the amounts reported on line 25a and enter the total on line 25b.

Part V—Self-Employment Tax

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If you are filing a joint return and both you and your spouse have income subject to SE tax, you must each complete a separate Part V. This includes those who made a joint election to be taxed as a QJV.

What Is Included in Net Earnings From Self-Employment

In most cases, net earnings include your net profit from a farm or nonfarm business. If you were a partner in a partnership, see the following instructions.

Partnership Income or Loss

When figuring your total net earnings from self-employment, include your share of partnership income or loss attributable to a trade or business and any guaranteed payments for services or the use of capital. However, if you were a limited partner, include only guaranteed payments for services you actually rendered to or on behalf of the partnership.

If you were a general partner, reduce lines 1a and 2 of Part V for any section 179 expense deduction, oil or gas depletion, and unreimbursed partnership expenses. Attach an explanation of these deductions.

If your partnership was engaged solely in the operation of a group investment program, earnings from the operation aren't self-employment earnings for either the general or limited partners.

If a partner died and the partnership continued, include in self-employment income the deceased partner's distributive share of the partnership's ordinary income or loss through the end of the month in which he or she died. See section 1402(f).

If you were married and both you and your spouse were partners in a partnership, each of you must report your net earnings from self-employment from the partnership. Each of you must complete a separate Part V. If only one of you was a partner in a partnership, the spouse who was the partner must pay SE tax on all of his or her share of partnership income.

Community income.

Your own distributive share of partnership income is included in figuring your net earnings from self-employment. Unlike the division of that income between spouses for figuring income tax, no part of your share can be included in figuring your spouse's net earnings from self-employment.

Share Farming

You are considered self-employed if you produced crops or livestock on someone else's land for a share of the crops or livestock produced (or a share of the proceeds from the sale of them). This applies even if you paid another person (an agent) to do the actual work or management for you. For details, see Pub. 225.

Other Income and Losses Included in Net Earnings From Self-Employment

 

  1. Rental income from a farm if, as landlord, you materially participated in the production or management of the production of farm products on the land. This income is farm earnings. To determine if you materially participated in farm management or production, do not consider the activities of any agent who acted for you. The material participation tests for landlords are explained in Pub. 225.

  2. Cash or a payment-in-kind from the Department of Agriculture for participating in a land diversion program.

  3. Payments for the use of rooms or other space when you also provided substantial services for the convenience of your tenants. Examples are hotel rooms, boarding houses, tourist camps or homes, parking lots, warehouses, and storage garages. See Pub. 334 for more information.

  4. Income from the retail sale of newspapers and magazines if you were age 18 or older and kept the profits.

  5. Income you receive as a direct seller. Newspaper carriers or distributors of any age are direct sellers if certain conditions apply. See Pub. 334 for details.

  6. Amounts received by current or former self-employed insurance agents and salespersons that are:

    1. Paid after retirement but figured as a percentage of commissions received from the paying company before retirement,

    2. Renewal commissions, or

    3. Deferred commissions paid after retirement for sales made before retirement.

    However, certain termination payments received by former insurance salespersons aren't included in net earnings from self-employment (as explained in item 10 under Income and Losses Not Included in Net Earnings From Self-Employment).

  7. Income of certain crew members of fishing vessels with crews of normally fewer than 10 people. See Pub. 334 for details.

  8. Fees as a state or local government employee if you were paid only on a fee basis and the job was not covered under a federal-state social security coverage agreement.

  9. Interest received in the course of any trade or business, such as interest on notes or accounts receivable.

  10. Fees and other payments received by you for services as a director of a corporation.

  11. Recapture amounts under sections 179 and 280F included in gross income because the business use of the property dropped to 50% or less. Do not include amounts you recaptured on the disposition of property. See Form 4797.

  12. Fees you received as a professional fiduciary. This may also apply to fees paid to you as a nonprofessional fiduciary if the fees relate to active participation in the operation of the estate's business or the management of an estate that required extensive management activities over a long period of time.

  13. Gain or loss from section 1256 contracts or related property by an options or commodities dealer in the normal course of dealing in or trading section 1256 contracts.

 

Income and Losses Not Included in Net Earnings From Self-Employment

 

  1. Salaries, fees, etc., subject to social security or Medicare tax that you received for performing services as an employee, including services performed as a public official (except as a fee basis government employee as discussed in item 8 under Other Income and Losses Included in Net Earnings From Self-Employment, earlier).

  2. Fees received for services performed as a notary public. However, if you have other earnings of $400 or more subject to SE tax, on the dotted line next to Part V, line 3, enter "Exempt—Notary" and the amount of your net profit as a notary public included in line 2. Subtract that amount from the total of lines 1a, 1b, and 2 and enter the result on line 3.

  3. Income you received as a retired partner under a written partnership plan that provides lifelong periodic retirement payments if you had no other interest in the partnership and did not perform services for it during the year.

  4. Income from real estate rentals if you did not receive the income in the course of a trade or business as a real estate dealer. Report this income in Part IV if you and your spouse made an election to be taxed as a QJV.

  5. Income from farm rentals (including rentals paid in crop shares) if, as landlord, you did not materially participate in the production, or management of the production, of farm products on the land. See Pub. 225 for details.

  6. Payments you receive from the Conservation Reserve Program (CRP) if you are receiving social security benefits for retirement or disability. Deduct these payments on line 1b of Part V.

  7. Dividends on shares of stock and interest on bonds, notes, etc., if you did not receive the income in the course of your trade or business as a dealer in stocks or securities.

  8. Gain or loss from:

    1. The sale or exchange of a capital asset;

    2. Certain transactions in timber, coal, or domestic iron ore; or

    3. The sale, exchange, involuntary conversion, or other disposition of property unless the property is stock in trade or other property that would be includible in inventory, or held mainly for sale to customers in the ordinary course of the business.

  9. Net operating losses from other years.

  10. Termination payments you received as a former insurance salesperson if all of the following conditions are met.

    1. The payment was received from an insurance company because of services you performed as an insurance salesperson for the company.

    2. The payment was received after termination of your agreement to perform services for the company.

    3. You did not perform any services for the company after termination and before the end of the year in which you received the payment.

    4. You entered into a covenant not to compete against the company for at least a 1-year period beginning on the date of termination.

    5. The amount of the payment depended primarily on policies sold by or credited to your account during the last year of the agreement, or the extent to which those policies remain in force for some period after termination, or both.

    6. The amount of the payment did not depend to any extent on length of service or overall earnings from services performed for the company (regardless of whether eligibility for the payment depended on length of service).

 

Line 1b

If you were receiving social security retirement or social security disability benefits at the time you received your Conservation Reserve Program (CRP) payment(s), include the amount of your taxable CRP payment(s) in the total on line 1b. The amount of these payments is included in Part III, line 6, and in information received from farm partnerships showing your distributive share.

Lines 4a Through 4c

If both lines 4a and 4c are less than $400 and you have deducted CRP payments on line 1b, combine lines 1a and 2.

  • If the total of lines 1a and 2 is $434 or more, complete Part V through line 4c. Enter "-0-" in Part I, line 3, unless you also have church employee income. If you also have church employee income, see Church Employees, earlier. Also complete lines 5a and 5b and the rest of Part V, as appropriate.

  • If the total of lines 1a and 2 is less than $434, do not complete Part V unless you choose to use an optional method to figure your SE tax or you have church employee income. If you have church employee income see Church Employees, earlier. Also complete lines 5a and 5b and the rest of Part V, as appropriate.

 

Line 8b

If you received tips of $20 or more in any month and did not report the full amount to your employer, you must file Form 4137 with Form 1040-SS (see instructions for Part I, Line 6, earlier). Enter on line 8b the amount from Form 4137, line 10.

Line 8c

If you are an employee who received wages from an employer who did not withhold social security and Medicare tax, you must file Form 8919 with Form 1040-SS (see instructions for Part I, Line 5, earlier). Enter on line 8c the amount from Form 8919, line 10.

Part VI—Optional Methods To Figure Net Earnings

The optional methods may give you credit toward your social security coverage even though you have a loss or a small amount of income from self-employment. But the optional methods may require you to pay SE tax when you would otherwise not be required to pay.

If you are filing a joint return and both you and your spouse choose to use an optional method to figure net earnings from self-employment, you must each complete and attach a separate Part VI.

You can change the method after you file your return. That is, you can change from the regular to the optional method or from the optional to the regular method. To do this, file a new Form 1040-SS. See the instructions under Amended Returns, later.

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Using the optional methods may qualify bona fide residents of Puerto Rico (see Days of presence in a U.S. territory, under Disaster Relief, earlier) to claim the additional child tax credit or give them a larger credit.

Farm Optional Method

You may use this method to figure your net earnings from farm self-employment if your gross farm income was $7,800 or less, or your net farm profits were less than $5,631. Net farm profits are the total of the amounts from Part III, line 36, and your distributive share from farm partnerships, minus the amount you would have entered in Part V, line 1b, had you not used the optional method.

There is no limit on how many years you can use this method.

Under this method, report in Part VI, line 2, the smaller of: two-thirds of your gross farm income (not less than zero), or $5,200. This method can increase or decrease your net self-employment farm earnings. You can use this method even if your farming business had a loss.

For a farm partnership, figure your share of gross income based on the partnership agreement. With guaranteed payments, your share of the partnership's gross income is your guaranteed payments plus your share of the gross income after it is reduced by all guaranteed payments made by the partnership. If you were a limited partner, include only guaranteed payments for services you actually rendered to or on behalf of the partnership.

Nonfarm Optional Method

You may be able to use this method to figure your net earnings from nonfarm self-employment if your net nonfarm profits were less than $5,631, and also less than 72.189% of your gross nonfarm income. Net nonfarm profits are the total of the amounts from Part IV, line 27, and your distributive share from other than farm partnerships.

To use this method, you also must be regularly self-employed. You meet this requirement if your actual net earnings from self-employment were $400 or more in 2 of the 3 years preceding the year you use the nonfarm optional method. The net earnings of $400 or more could be from either farm or nonfarm earnings or both. The net earnings include your distributive share of partnership income or loss subject to SE tax.

Use of the nonfarm optional method from nonfarm self-employment is limited to 5 years. The 5 years do not have to be consecutive.

Under this method, report in Part VI, line 4, the smaller of: two-thirds of your gross nonfarm income (not less than zero), or the amount in Part VI, line 3. But you can't report less than your actual net earnings from nonfarm self-employment.

Figure your share of gross income from a nonfarm partnership in the same manner as a farm partnership. For details, see Farm Optional Method, earlier.

Using Both Optional Methods

If you have both farm and nonfarm earnings, and can use both optional methods, you can report less than your total actual net earnings from farm and nonfarm self-employment, but you can't report less than your actual net earnings from nonfarm self-employment alone.

If you use both methods to figure net earnings from self-employment, you can't report more than $5,200 of net earnings from self-employment.

Completing Your Return

Third Party Designee

If you want to allow your preparer, a friend, family member, or any other person you choose to discuss your 2017 tax return with the IRS, check the "Yes" box in the "Third Party Designee" area on page 1 of your return. Also, enter the designee's name, phone number, and any five digits the designee chooses as his or her personal identification number (PIN).

If you check the "Yes" box, you (and your spouse if filing a joint return) are authorizing the IRS to call the designee to answer any questions that may arise during the processing of your return. You are also authorizing the designee to:

  • Give the IRS any information that is missing from your return,

  • Call the IRS for information about the processing of your return or the status of your refund or payment(s),

  • Receive copies of notices or transcripts related to your return, upon request, and

  • Respond to certain IRS notices about math errors, offsets, and return preparation.

 

You aren't authorizing the designee to receive any refund check, bind you to anything (including any additional tax liability), or otherwise represent you before the IRS. If you want to expand the designee's authorization, see Pub. 947.

The authorization will automatically end no later than the due date (without regard to extensions) for filing your 2018 tax return. This is April 15, 2019, for most people. If you wish to revoke the authorization before it ends, see Pub. 947.

Signature and Date

Sign and date your return. It isn't valid unless you sign it. If you are filing a joint return, your spouse must also sign. If your spouse can't sign the return, see Pub. 501.

In most cases, anyone you pay to prepare your return must sign it and fill in the Paid Preparer Use Only area in the space provided. The preparer must give you a copy of the return for your records. Someone who prepares your return but doesn't charge you, should not sign your return.

If you have someone prepare your return, you are still responsible for the correctness of the return.

Daytime Phone Number

Providing your daytime phone number can help speed the processing of your return. If we have questions about items on your return and you can answer our questions over the phone, we may be able to continue processing your return without mailing you a letter. If you are filing a joint return, you can enter either your or your spouse's daytime phone number.

Identity Protection PIN

For 2017, if you received an Identity Protection Personal Identification Number (IP PIN) from the IRS, enter it in the IP PIN spaces provided below your daytime phone number. You must correctly enter all six numbers of your IP PIN. If you did not receive an IP PIN, leave these spaces blank.

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New IP PINs are issued every year. Enter the latest IP PIN you received. IP PINs for 2017 tax returns generally were sent in December 2017.

If you are filing a joint return and both taxpayers receive an IP PIN, only the taxpayer whose SSN appears first on the tax return should enter his or her IP PIN. However, if you are filing electronically, both taxpayers must enter their IP PINs.

If you need more information or answers to frequently asked questions on how to use the IP PIN, go to IRS.gov/Individuals/Understanding-Your-CP01A-Notice. If you received an IP PIN but misplaced it, call 1-800-908-4490.

Understanding identity theft issues.

Go to IRS.gov/individuals/the-identity-protection-pin-ip-pin for information and videos.

Additional Information

Amended Returns

File a new Form 1040-SS to change a Form 1040-SS you already filed. If you filed Form 1040-SS but should have filed Form 1040, file a corrected return on Form 1040. In either case, at the top of page 1 of the corrected return, enter "CORRECTED" in dark bold letters followed by the date. In most cases, an amended Form 1040-SS (or Form 1040, if applicable) must be filed within 3 years after the date on which the original return was filed or within 2 years after the tax was paid, whichever is later.

Interest and Penalties

Do not figure the amount of any interest or penalties you may owe. We will send you a bill for any amount due.

Interest

The IRS will charge you interest on taxes not paid by their due date, or the extended due date, if an extension of time to file is granted. Also, you will be charged interest on penalties.

Penalties

Late filing.

If you do not file your return by the due date (including extensions), the penalty is usually 5% of the amount due for each month or part of a month your return is late, unless you have a reasonable explanation. If you do, attach a statement to your return. The penalty can be as much as 25% of the tax due. The penalty is 15% per month, up to a maximum of 75%, if the failure to file is fraudulent. If your return is more than 60 days late, the minimum penalty will be $210 or the amount of any tax you owe, whichever is smaller.

Late payment of tax.

If you pay your taxes late, the penalty is usually ½ of 1% of the unpaid amount for each month or part of a month the tax isn't paid. The penalty can be as much as 25% of the unpaid amount. It applies to any unpaid tax on the return. This penalty is in addition to interest charges on late payments.

Frivolous return.

In addition to any other penalties, the law imposes a penalty of $5,000 for filing a frivolous return. A frivolous return is one that doesn't contain information needed to figure the correct tax or shows a substantially incorrect tax because you take a frivolous position or desire to delay or interfere with the tax laws. This includes altering or striking out the preprinted language above the space where you sign. For a list of positions identified as frivolous, see Notice 2010-33, 2010-17 I.R.B. 609, available at IRS.gov/irb/2010-17_IRB/ar13.html.

Other.

Other penalties can be imposed, including those for negligence, substantial understatement of tax, reportable transaction understatements, filing an erroneous refund claim, and fraud. Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. See Pub. 17, for details on some of these penalties.

Access Your Online Account (Individual Taxpayers Only)

Go to IRS.gov/account to securely access information about your federal tax account.

  • View the amount you owe, pay online or set up an online payment agreement.

  • Access your tax records online.

  • Review the past 18 months of your payment history.

  • Go to IRS.gov/secureaccess to review the required identity authentication process.

 

How To Get Forms and Publications

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Visit IRS.gov/forms-pubs to download U.S. forms and publications. Otherwise, you can go to IRS.gov/orderforms to order forms and publications by U.S. mail. Your order should arrive within 10 business days.

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You can order forms and publications by calling 1-800-TAX-FORM (1-800-829-3676) (not toll free in American Samoa). People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-829-4059 (not toll free in American Samoa).

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If you have a tax question, check the information available on IRS.gov or call 1-800-829-1040.

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You can order forms and publications by sending your order to:

Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL
61705-6613

 

Territory Resources

Addresses of walk-in sites in each territory and other ways to get forms and publications are listed below.

Note.

The addresses are subject to change.

American Samoa

 

American Samoa Government
Tax Office
Executive Office Building
First Floor
Pago Pago, AS 96799

 

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You can order forms and publications by calling 684-633-4181.

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You can order forms and publications through the fax 684-633-1513.

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You can get forms and publications at Americansamoa.gov.

CNMI

 

Division of Revenue and Taxation
Dandan Commercial Center
P.O. Box 5234 CHRB
Saipan, MP 96950

 

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You can order forms and publications by calling 670-664-1000.

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You can order forms and publications through the fax 670-664-1015.

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You can get forms and publications at CNMIDOF.net/rev/forms.asp.

Guam

 

Department of Revenue and Taxation
Taxpayer Services Division
P.O. Box 23607
GMF, Guam 96921

 

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You can order forms and publications by calling 671-635-1840 or 671-635-1841.

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You can order forms and publications through the fax 671-633-2643.

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You can get forms and publications at Guamtax.com.

Puerto Rico

 

U.S. Internal Revenue Service
48 Carr 165 km.1.2
City View Plaza II Bldg.
Guaynabo, PR 00968-8000

 

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You can order forms and publications, and get tax assistance, by calling 1-800-829-1040. People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-829-4059.

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You can download U.S. current and prior forms and publications in a variety of file formats at IRS.gov/forms-pubs. Otherwise, you can go to IRS.gov/orderforms to order forms. Your order should arrive within 10 business days.

USVI

 

U.S. Internal Revenue Service
4008 Estate Diamond–Plot 7-B
Christiansted, VI 00820-4421

 

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You can order forms and publications, and get tax assistance, by calling 1-800-829-1040. People who are deaf, hard of hearing, or have a speech disability and who have access to TTY/TDD equipment can call 1-800-829-4059.

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You can download forms and publications, and find tax information, at IRS.gov/forms-pubs. Otherwise, you can go to IRS.gov/orderforms to order forms. Your order should arrive within 10 business days.

 

U.S. Internal Revenue Service
Ron De Lugo Federal Building and
Courthouse
5500 Veterans Drive, Room 216
Charlotte Amalie, VI 00802

 

 

USVI Bureau of Internal Revenue
6115 Estate Smith Bay
Suite 225
St. Thomas, VI 00802

 

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You can order forms and publications by calling 340-715-1040.

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You can order forms and publications through the fax 340-774-2672.

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You can get forms and publications at Vibir.gov.

 

USVI Bureau of Internal Revenue
4008 Estate Diamond–Plot 7-B
Christiansted, VI 00820–4421

 

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You can order forms and publications by calling 340-773-1040.

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You can order forms and publications through the fax 340-773-1006.

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You can get forms and publications at Vibir.gov.

Instructions for Form 1040-SS - Notices

Disclosure, Privacy Act, and Paperwork Reduction Act Notice.

The IRS Restructuring and Reform Act of 1998, the Privacy Act of 1974, and Paperwork Reduction Act of 1980 require that when we ask you for information we must first tell you our legal right to ask for the information, why we are asking for it, and how it will be used. We must also tell you what could happen if we do not receive it and whether your response is voluntary, required to obtain a benefit, or mandatory under the law.

This notice applies to all papers you file with us, including this tax return. It also applies to any questions we need to ask you so we can complete, correct, or process your return; figure your tax; and collect tax, interest, or penalties.

Our legal right to ask for information is sections 6001, 6011, and 7651 and their regulations. They say that you must file a return or statement with the IRS and pay to the United States Treasury any tax for which you are liable. Your response is mandatory under these sections. Section 6109 requires you to provide your identifying number on the return. This is so we know who you are, and can process your return and other papers. You must fill in all parts of the tax form that apply to you.

You aren't required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law.

We ask for tax return information to carry out the tax laws of the United States. We need it to figure and collect the right amount of tax.

If you do not file a return, do not provide the information we ask for, or provide fraudulent information, you may be charged penalties. We may also have to disallow any deductions shown on the tax return. This could make the tax higher or delay any refund, and the calculation of your social security benefits may be affected.

Generally, tax returns and return information are confidential, as stated in section 6103. However, section 6103 allows or requires the IRS to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the SSA for use in calculating your social security benefits; to the Department of Justice, to enforce the tax laws, both civil and criminal; and to cities, states, the District of Columbia, and U.S. commonwealths or possessions to carry out their tax laws.

We may disclose your tax information to other persons as necessary to obtain information needed to determine the amount of or to collect the tax you owe. We may disclose your tax information to the Comptroller General of the United States to permit the Comptroller General to review the Internal Revenue Service. We may disclose your tax information to Committees of Congress; federal, state, and local child support agencies; and to other federal agencies for the purposes of determining entitlement for benefits or the eligibility for and the repayment of loans. We may also disclose this information to other countries under a tax treaty, or to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.

Keep this notice with your records. It may help you if we ask you for other information. If you have questions about the rules for filing and giving information, call or visit any IRS office.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is:

Recordkeeping 5 hr., 27 min.
Learning about the law or the form 1 hr., 10 min.
Preparing the form 3 hr., 47 min.
Copying, assembling, and sending the form to the IRS 1 hr., 03 min.

 

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can send us comments from IRS.gov/FormComments. You can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the form to this address. Instead, see Where To File in the General Instructions, earlier.

Although we can't respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. We can't answer tax questions sent to the above address.