Department of the Treasury

Internal Revenue Service

Publication 554

Cat. No. 15102R

Tax Guide for Seniors

For use in preparing 2023 Returns

Jan 18, 2024

Future Developments

For the latest information about developments related to Pub. 554, such as legislation enacted after it was published, go to IRS.gov/Pub554.

What's New

Coronavirus-related distributions. The repayment period for a coronavirus-related distribution made on or after January 1, 2020, and before December 31, 2020, ended on December 31, 2023. If you made repayments in 2023 and/or you didn’t completely repay the distribution by December 31, 2023, see Form 8915-F.

Increase in required minimum distribution age. If you reach age 72 in 2023 or later and have funds in a traditional IRA (including a SEP and SIMPLE IRA) the required beginning date for your first required minimum distribution is April 1 of the year following the year in which you turn 73.

Exception to the 10% additional tax for early distributions. The exception to the 10% additional tax for early distributions include the following.

Distributions from a retirement plan in connection with federally declared disasters.

Distributions from a retirement plan made to someone who is terminally ill.

Distributions to certain firefighters who meet the age or years of service requirement.

See Form 5329 and Pub 590-B for more information.

Standard deduction amount increased. For 2023, the standard deduction amount has been increased for all filers. The amounts are:

Single or Married filing separately—$13,850.

Married filing jointly or Qualifying surviving spouse—$27,700.

Head of household—$20,800.

Alternative minimum tax exemption increased. The AMT exemption amount has increased to $81,300 ($126,500 if married filing jointly or qualifying surviving spouse; $63,250 if married filing separately).

Earned income credit. The maximum amount of income you can earn and still get the credit has changed. You may be able to take the credit if you earn less than:

$17,640 ($24,210 if married filing jointly), don't have a qualifying child, and are at least 25 years old and under age 65;

$46,560 ($53,120 if married filing jointly), and you have one qualifying child;

$52,918 ($59,478 if married filing jointly), and you have two qualifying children; or

$56,838 ($63,398 if married filing jointly), and you have three or more qualifying children.

 For more information, see Earned Income Credit, later.

Standard mileage rate. For 2023, the standard mileage rate allowed for operating expenses for a car when you use it for medical reasons is 22 cents a mile.

Reminders

Qualified disaster tax relief. Special rules provide for tax-favored withdrawals and repayments from certain retirement plans for taxpayers who suffered economic loss as a result of a qualified disaster. See Form 8915-F, Qualified Disaster Retirement Plan Distributions and Repayments, for more information.

Maximum age for traditional IRA contributions. The age restriction for contributions to a traditional IRA has been eliminated.

Form 1040-SR. Form 1040-SR, U.S. Tax Return for Seniors, was introduced in 2019. You can use this form if you are age 65 or older at the end of 2023. The form generally mirrors Form 1040. However, the Form 1040-SR has larger text and some helpful tips for older taxpayers. See the Instructions for Form 1040 for more information.

Tax return preparers. Choose your preparer carefully. If you pay someone to prepare your return, the preparer is required, under the law, to sign the return and fill in the other blanks in the Paid Preparer Use Only area of your return. Remember, however, that you are still responsible for the accuracy of every item entered on your return. If there is any underpayment, you are responsible for paying it, plus any interest and penalty that may be due.

Third party designee. You can check the “Yes” box in the Third Party Designee area of your return to authorize the IRS to discuss your return with your preparer, a friend, a family member, or any other person you choose. This allows the IRS to call the person you identified as your designee to answer any questions that may arise during the processing of your return. It also allows your designee to perform certain actions. See your income tax return instructions for details.

Employment tax withholding. Your wages are subject to withholding for income tax, social security tax, and Medicare tax even if you are receiving social security benefits.

Social security benefits information. Social security beneficiaries may quickly and easily obtain various information from the Social Security Administration’s (SSA’s) website with a my Social Security account, including getting a replacement SSA‐1099 or SSA‐1042S. For more information, go to SSA.gov/myaccount. See Obtaining social security information, later.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 800-THE-LOST (800﻿-﻿843﻿-﻿5678) if you recognize a child.

Introduction

The purpose of this publication is to provide a general overview of selected topics that are of interest to older taxpayers. This publication will help you determine if you need to file a return and, if so, what items to report on your return. Each topic is discussed only briefly, so you will find references to other free IRS publications that provide more detail on these topics if you need it.

Table I has a list of questions you may have about filing your federal tax return. To the right of each question is the location of the answer in this publication. Also, at the back of this publication, there is an index to help you search for the topic you need.

While most federal income tax laws apply equally to all taxpayers, regardless of age, there are some provisions that give special treatment to older taxpayers. The following are some examples.

Higher gross income threshold for filing. You must be age 65 or older at the end of the year to get this benefit. You are considered age 65 on the day before your 65th birthday. Therefore, you are considered age 65 at the end of the year if your 65th birthday is on or before January 1 of the following year.

Higher standard deduction. If you don't itemize deductions, you are entitled to a higher standard deduction if you are age 65 or older at the end of the year. You are considered age 65 at the end of the year if your 65th birthday is on or before January 1 of the following year.

Credit for the elderly or the disabled. If you qualify, you may benefit from the credit for the elderly or the disabled. To determine if you qualify and how to figure this credit, see Credit for the Elderly or the Disabled, later.

Return preparation assistance.

The IRS wants to make it easier for you to file your federal tax return. You may find it helpful to visit a Volunteer Income Tax Assistance (VITA), Tax Counseling for the Elderly (TCE), or American Association of Retired Persons (AARP) Tax-Aide site near you.

Volunteer Income Tax Assistance and Tax Counseling for the Elderly.

These programs provide free help for low-income taxpayers and taxpayers age 60 or older to prepare and file their returns. For the VITA/TCE site nearest you, contact your local IRS office. For more information, see Preparing and filing your tax return. under How To Get Tax Help.

AARP Tax-Aide.

AARP Foundation Tax-Aide offers free tax preparation and has more than 5,000 locations in neighborhood libraries, malls, banks, community centers, and senior centers annually during the filing season. Visit AARP.org/TaxAide or call 888-OUR-AARP (888﻿-﻿687﻿-﻿2277) for more information.

Comments and suggestions.

We welcome your comments about this publication and suggestions for future editions.

You can send us comments through IRS.gov/FormComments. Or, you can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions.

If you have a tax question not answered by this publication or the How To Get Tax Help section at the end of this publication, go to the IRS Interactive Tax Assistant page at IRS.gov/Help/ITA where you can find topics by using the search feature or viewing the categories listed.

Getting tax forms, instructions, and publications.

Go to IRS.gov/Forms to download current and prior-year forms, instructions, and publications.

Ordering tax forms, instructions, and publications.

Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800﻿-﻿829﻿-﻿3676 to order prior-year forms and instructions. The IRS will process your order for forms and publications as soon as possible. Don’t resubmit requests you’ve already sent us. You can get forms and publications faster online.

T﻿a﻿b﻿l﻿e﻿ ﻿I﻿.﻿ ﻿ 

What You Should Know About Federal Taxes

Note. The following is a list of questions you may have about filling out your federal income tax return.
To the right of each question is the location of the answer in this publication.

What I Should Know

Where To Find the Answer

Do I need to file a return?

See chapter﻿ ﻿1.

Is my income taxable or nontaxable?

If it is nontaxable, must I still report it?

See chapter﻿ ﻿2.

How do I report benefits I received from the Social Security Administration or the Railroad Retirement Board?

Are these benefits taxable?

See Social Security and Equivalent Railroad Retirement Benefits in chapter﻿ ﻿2.

Must I report the sale of my home?

If I had a gain, is any part of it taxable?

See Sale of Home in chapter﻿ ﻿2.

What are some of the items that I can deduct to reduce my income?

See chapters 3 and 4.

How do I report the amounts I set aside for my IRA?

See Individual Retirement Arrangement Contributions and Deductions in chapter﻿ ﻿3.

Would it be better for me to claim the standard deduction or itemize my deductions?

See chapter﻿ ﻿4.

What are some of the credits I can claim to reduce my tax?

See chapter﻿ ﻿5 for discussions on the credit for the elderly or the disabled, the child and dependent care credit, and the earned income credit.

Must I make estimated tax payments?

See chapter﻿ ﻿6.

How do I contact the IRS or get more information?

See chapter﻿ ﻿7.

1.

2023 Filing Requirements

If income tax was withheld from your pay, or if you qualify for a refundable credit (such as the earned income credit, the additional child tax credit, or the American opportunity credit), you should file a return to get a refund even if you aren't otherwise required to file a return.

Don't file a federal income tax return if you don't meet the filing requirements and aren't due a refund. If you need assistance to determine if you need to file a federal income tax return for 2023, go to IRS.gov/ITA and use the Interactive Tax Assistant (ITA).

General Requirements

If you are a U.S. citizen or resident alien, you must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1﻿-﻿1. For other filing requirements, see your tax return instructions or Pub. 501. If you were a nonresident alien at any time during the year, the filing requirements that apply to you may be different from those that apply to U.S. citizens. See Pub. 519.

T﻿a﻿b﻿l﻿e﻿ ﻿1﻿-﻿1﻿.﻿ ﻿ 

2023 Filing Requirements Chart for Most Taxpayers

Note. You must file a return if your gross income was at least the amount shown in the last column.

IF your filing status is. . .

AND at the end of 2023
you were . . .*

THEN file a return if your gross income** was at least. . .

single

under 65

$13,850

65 or older

$15,700

head of household

under 65

$20,800

65 or older

$22,650

married filing jointly***

under 65 (both spouses)

$27,700

65 or older (one spouse)

$29,200

65 or older (both spouses)

$30,700

married filing separately

any age

$5

qualifying surviving spouse

under 65

$27,700

65 or older

$29,200

*

If you were born before January 2, 1959, you are considered to be age 65 or older at the end of 2023. (If your spouse died in 2023 or if you are preparing a return for someone who died in 2023, see Pub. 501.)

**

Gross income means all income you receive 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). It also 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, don't reduce your income by any losses, including any loss on Schedule﻿ ﻿C, line﻿ ﻿7, or Schedule﻿ ﻿F, line﻿ ﻿9. Don't include any social security benefits unless (a) you are married filing separately and you lived with your spouse at any time in 2023, 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 Form 1040 or Pub. 915 to figure the taxable part of social security benefits you must include in gross income.

***

If you didn't live with your spouse at the end of 2023 (or on the date your spouse died) and your gross income was at least $5, you must file a return regardless of your age.

Gross income.

Gross income is all income you receive in the form of money, goods, property, and services that isn't exempt from tax. If you are married and live with your spouse in a community property state, half of any income defined by state law as community income may be considered yours. States with community property laws include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. A registered domestic partner in Nevada, Washington, or California must generally report half the combined community income of the individual and their domestic partner. For more information about community property, see Pub. 555.

For more information on what to include in gross income, see chapter﻿ ﻿2.

Self-employed persons.

If you are self-employed in a business that provides services (where the production, purchase, or sale of merchandise isn't an income-producing factor), gross income from that business is the gross receipts. If you are self-employed in a business involving manufacturing, merchandising, or mining, gross income from that business is the total sales minus the cost of goods sold. In either case, you must add any income from investments and from incidental or outside operations or sources. See Pub. 334.

Dependents.

If you could be claimed as a dependent by another taxpayer (that is, you meet the dependency tests in Pub. 501), special filing requirements apply. See Pub. 501.

Decedents

A personal representative of a decedent's estate can be an executor, administrator, or anyone who is in charge of the decedent's property.

If you are acting as the personal representative of a person who died during the year, you may have to file a final return for that decedent. You also have other duties, such as notifying the IRS that you are acting as the personal representative. Form 56, Notice Concerning Fiduciary Relationship, is available for this purpose.

When you file a return for the decedent, either as the personal representative or as the surviving spouse, you should enter “DECEASED,” the decedent's name, and the date of death across the top of the tax return.

If no personal representative has been appointed by the due date for filing the return, the surviving spouse (on a joint return) should sign the return and enter in the signature area “Filing as surviving spouse.”

For more information, see Pub. 559.

Surviving spouse.

If you are the surviving spouse, the year your spouse died is the last year for which you can file a joint return with that spouse. After that, if you don't remarry, you must file as a qualifying surviving spouse, head of household, or single. For more information about each of these filing statuses, see Pub. 501.

If you remarry before the end of the year in which your spouse died, a final joint return with the deceased spouse can't be filed. You can, however, file a joint return with your new spouse. In that case, the filing status of your deceased spouse for their final return is married filing separately.

The level of income that requires you to file an income tax return changes when your filing status changes (see Table 1﻿-﻿1). Even if you and your deceased spouse weren't required to file a return for several years, you may have to file a return for tax years after the year of death. For example, if your filing status changes from filing jointly in 2022 to single in 2023 because of the death of your spouse, and your gross income is $17,500 for both years, you must file a return for 2023 even though you didn't have to file a return for 2022.

2.

Taxable and Nontaxable Income

Generally, income is taxable unless it is specifically exempt (not taxed) by law. Your taxable income may include compensation for services, interest, dividends, rents, royalties, income from partnerships, estate or trust income, gain from sales or exchanges of property, and business income of all kinds.

Under special provisions of the law, certain items are partially or fully exempt from tax. Provisions that are of special interest to older taxpayers are discussed in this chapter.

Compensation for Services

Generally, you must include in gross income everything you receive in payment for personal services. In addition to wages, salaries, commissions, fees, and tips, this includes other forms of compensation such as fringe benefits and stock options.

You don’t need to receive the compensation in cash for it to be taxable. Payments you receive in the form of goods or services must generally be included in gross income at their fair market value.

Volunteer work.

Don't include in your gross income amounts you receive for supportive services or reimbursements for out-of-pocket expenses under any of the following volunteer programs.

Retired Senior Volunteer Program (RSVP).

Foster Grandparent Program.

Senior Companion Program.

Service Corps of Retired Executives (SCORE).

Unemployment compensation.

You must include in income all unemployment compensation you or your spouse (if married filing jointly) received.

More information.

See Pub. 525, for more detailed information on specific types of income.

Retirement Plan Distributions

This section summarizes the tax treatment of amounts you receive from traditional individual retirement arrangements (IRAs), employee pensions or annuities, and disability pensions or annuities. A traditional IRA is any IRA that isn't a Roth or SIMPLE IRA. A Roth IRA is an individual retirement plan that can be either an account or an annuity and features nondeductible contributions and tax-free distributions. A SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. More detailed information can be found in Pub. 590-A, Pub. 590-B, and Pub. 575.

Individual Retirement Arrangements (IRAs)

In general, distributions from a traditional IRA are taxable in the year you receive them. Exceptions to the general rule are rollovers, tax-free withdrawals of contributions, and the return of nondeductible contributions. These are discussed in Pub. 590-B.

If you made nondeductible contributions to a traditional IRA, you must file Form 8606, Nondeductible IRAs. If you don't file Form 8606 with your return, you may have to pay a $50 penalty. Also, when you receive distributions from your traditional IRA, the amounts will be taxed unless you can show, with satisfactory evidence, that nondeductible contributions were made.

Early distributions.

Generally, early distributions are amounts distributed from your traditional IRA account or annuity before you are age 59﻿ ﻿1﻿/﻿2, or amounts you receive when you cash in retirement bonds before you are age 59﻿ ﻿1﻿/﻿2. You must include early distributions of taxable amounts in your gross income. These taxable amounts are also subject to an additional 10% tax unless the distribution qualifies for an exception. For purposes of the additional 10% tax, an IRA is a qualified retirement plan. For more information about this tax, see Tax on Early Distributions under Pensions and Annuities, later.

After age 59﻿ ﻿1﻿/﻿2.

After you reach age 59﻿ ﻿1﻿/﻿2, you can receive distributions from your traditional IRA without having to pay the 10% additional tax.

Required Distributions

General required minimum distribution rule.

If you are the owner of a traditional IRA, you must generally receive the entire balance in your IRA or start receiving periodic distributions from your IRA by April 1 of the year following the year in which you reach age 73 (72 for those individuals who reach age 72 before January 1, 2023). See When Must You Withdraw Assets? (Required Minimum Distributions) in Pub. 590-B. If distributions from your traditional IRA(s) are less than the required minimum distribution for the year, you may have to pay an excise tax for that year on the amount not distributed as required. For more information about this tax, see Tax on Excess Accumulation under Pensions and Annuities, later. See also Excess Accumulations (Insufficient Distributions) in Pub. 590-B.

Pensions and Annuities

Generally, if you didn't pay any part of the cost of your employee pension or annuity, and your employer didn't withhold part of the cost of the contract from your pay while you worked, the amounts you receive each year are fully taxable. However, see Insurance Premiums for Retired Public Safety Officers, later.

If you paid part of the cost of your pension or annuity plan (see Cost, later), you can exclude part of each annuity payment from income as a recovery of your cost (investment in the contract). This tax-free part of the payment is figured when your annuity starts and remains the same each year, even if the amount of the payment changes. The rest of each payment is taxable. However, see Insurance Premiums for Retired Public Safety Officers, later.

You figure the tax-free part of the payment using one of the following methods.

Simplified Method. You must generally use this method if your annuity is paid under a qualified plan (a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity plan or contract). You can't use this method if your annuity is paid under a nonqualified plan.

General Rule. You must use this method if your annuity is paid under a nonqualified plan. You generally can't use this method if your annuity is paid under a qualified plan.

Contact your employer or plan administrator to find out if your pension or annuity is paid under a qualified or nonqualified plan.

You determine which method to use when you first begin receiving your annuity, and you continue using it each year that you recover part of your cost.

Exclusion limit.

If your annuity starting date is after 1986, the total amount of annuity income you can exclude over the years as a recovery of the cost can't exceed your net cost (figured without any reduction for a refund feature). Any unrecovered cost at your (or the last annuitant's) death is allowed as an “other itemized deduction” on the final return of the decedent.

If you contributed to your pension or annuity and your annuity starting date is before 1987, you can continue to take your monthly exclusion for as long as you receive your annuity. If you chose a joint and survivor annuity, your survivor can continue to take the survivor's exclusion figured as of the annuity starting date. The total exclusion may be more than your cost.

Cost.

Before you can figure how much, if any, of your pension or annuity benefits are taxable, you must determine your cost in the plan (your investment in the contract). Your total cost in the plan includes everything that you paid. It also includes amounts your employer contributed that were taxable to you when paid. However, see Foreign employment contributions, later.

From this total cost, subtract any refunded premiums, rebates, dividends, unrepaid loans, or other tax-free amounts you received by the later of the annuity starting date or the date on which you received your first payment.

Annuity starting date.

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

Tax TipThe amount of your contributions to the plan may be shown in box 9b of any Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., that you receive.

Foreign employment contributions.

If you worked abroad, certain amounts your employer paid into your retirement plan that weren't includible in your gross income may be considered part of your cost. For details, see Foreign employment contributions in Pub. 575.

Withholding.

The payer of your pension, profit-sharing, stock bonus, annuity, or deferred compensation plan will withhold income tax on the taxable part of amounts paid to you. However, you can choose not to have tax withheld on the payments you receive, unless they are eligible rollover distributions. (These are distributions that are eligible for rollover treatment but aren't paid directly to another qualified retirement plan or to a traditional IRA.) See Withholding Tax and Estimated Tax and Rollovers in Pub. 575 for more information.

For payments other than eligible rollover distributions, you can tell the payer how much to withhold by filing a Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments.

Simplified Method.

Under the Simplified Method, you figure the tax-free part of each annuity payment by dividing your cost by the total number of anticipated monthly payments. For an annuity that is payable over the lives of the annuitants, this number is based on the annuitants' ages on the annuity starting date and is determined from a table. For any other annuity, this number is the number of monthly annuity payments under the contract.

Who must use the Simplified Method.

You must use the Simplified Method if your annuity starting date is after November 18, 1996, and you meet both of the following conditions.

You receive your pension or annuity payments from a qualified plan.

On your annuity starting date, at least one of the following conditions applies to you.

You are under age 75.

You are entitled to less than 5 years of guaranteed payments.

If your annuity starting date is after July 1, 1986, and before November 19, 1996, and you previously chose to use the Simplified Method, you must continue to use it each year that you recover part of your cost. You could have chosen to use the Simplified Method if your annuity is payable for your life (or the lives of you and your survivor annuitant) and you met both of the conditions listed above.

Guaranteed payments.

Your annuity contract provides guaranteed payments if a minimum number of payments or a minimum amount (for example, the amount of your investment) is payable even if you and any survivor annuitant don't live to receive the minimum. If the minimum amount is less than the total amount of the payments you are to receive, barring death, during the first 5 years after payments begin (figured by ignoring any payment increases), you are entitled to less than 5 years of guaranteed payments.

Who can't use the Simplified Method.

You can't use the Simplified Method and must use the General Rule if you receive pension or annuity payments from:

A nonqualified plan, such as a private annuity, a purchased commercial annuity, or a nonqualified employee plan; or

A qualified plan if you are age 75 or older on your annuity starting date and you are entitled to at least 5 years of guaranteed payments (defined above).

In addition, you had to use the General Rule for either circumstance described above if your annuity starting date is after July 1, 1986, and before November 19, 1996. You also had to use it for any fixed-period annuity. If you didn't have to use the General Rule, you could have chosen to use it. You also had to use the General Rule for payments from a qualified plan if your annuity starting date is before July 2, 1986, and you didn't qualify to use the Three-Year Rule.

If you had to use the General Rule (or chose to use it), you must continue to use it each year that you recover your cost.

Unless your annuity starting date was before 1987, once you have recovered all of your nontaxable investment, all of each remaining payment you receive is fully taxable. Once your remaining payments are fully taxable, there is no longer a concern with the General Rule or Simplified Method.

Complete information on the General Rule, including the actuarial tables you need, is contained in Pub. 939.

How to use the Simplified Method.

Complete the Simplified Method Worksheet in the Instructions for Form 1040 or Instructions for Form 1040-NR, or in Pub. 575 to figure your taxable annuity for 2023. Be sure to keep the completed worksheet; it will help you figure your taxable annuity next year.

To complete line﻿ ﻿3 of the worksheet, you must determine the total number of expected monthly payments for your annuity. How you do this depends on whether the annuity is for a single life, multiple lives, or a fixed period. For this purpose, treat an annuity that is payable over the life of an annuitant as payable for that annuitant's life even if the annuity has a fixed-period feature or also provides a temporary annuity payable to the annuitant's child under age 25.

Tax TipYou don't need to complete line﻿ ﻿3 of the worksheet or make the computation on line﻿ ﻿4 if you received annuity payments last year and used last year's worksheet to figure your taxable annuity. Instead, enter the amount from line﻿ ﻿4 of last year's worksheet on line﻿ ﻿4 of this year's worksheet.

Single-life annuity.

If your annuity is payable for your life alone, use Table 1 at the bottom of the worksheet to determine the total number of expected monthly payments. Enter on line﻿ ﻿3 the number shown for your age on your annuity starting date. This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996.

Multiple-lives annuity.

If your annuity is payable for the lives of more than one annuitant, use Table 2 at the bottom of the worksheet to determine the total number of expected monthly payments. Enter on line﻿ ﻿3 the number shown for the annuitants' combined ages on the annuity starting date. For an annuity payable to you as the primary annuitant and to more than one survivor annuitant, combine your age and the age of the youngest survivor annuitant. For an annuity that has no primary annuitant and is payable to you and others as survivor annuitants, combine the ages of the oldest and youngest annuitants. Don't treat as a survivor annuitant anyone whose entitlement to payments depends on an event other than the primary annuitant's death.

However, if your annuity starting date is before 1998, don't use Table 2 and don't combine the annuitants' ages. Instead, you must use Table 1 at the bottom of the worksheet and enter on line﻿ ﻿3 the number shown for the primary annuitant's age on the annuity starting date. This number will differ depending on whether your annuity starting date is before November 19, 1996, or after November 18, 1996.

Fixed-period annuities.

If your annuity doesn't depend in whole or in part on anyone's life expectancy, the total number of expected monthly payments to enter on line﻿ ﻿3 of the worksheet is the number of monthly annuity payments under the contract.

Line﻿ ﻿6.

The amount on line﻿ ﻿6 should include all amounts that could have been recovered in prior years. If you didn't recover an amount in a prior year, you may be able to amend your returns for the affected years.

Tax TipBe sure to keep a copy of the completed worksheet; it will help you figure your taxable annuity in later years.

Example. Kris Smith, age 65, began receiving retirement benefits in 2023, under a joint and survivor annuity. Kris' annuity starting date is January 1, 2023. The benefits are to be paid over the joint lives of Kris and their spouse, Pat, age 65. Kris had contributed $31,000 to a qualified plan and had received no distributions before the annuity starting date. Kris is to receive a retirement benefit of $1,200 a month, and Pat is to receive a monthly survivor benefit of $600 upon Kris' death.

Kris must use the Simplified Method to figure their taxable annuity because the payments are from a qualified plan and they are under age 75. You can find a blank version of this worksheet in Pub. 575.

Survivors of retirees.

Benefits paid to you as a survivor under a joint and survivor annuity must be included in your gross income in the same way the retiree would have included them in gross income.

If you receive a survivor annuity because of the death of a retiree who had reported the annuity under the Three-Year Rule, include the total received in your income. The retiree's cost has already been recovered tax free.

If the retiree was reporting the annuity payments under the General Rule, you must apply the same exclusion percentage the retiree used to your initial payment called for in the contract. The resulting tax-free amount will then remain fixed. Any increases in the survivor annuity are fully taxable.

If the retiree was reporting the annuity payments under the Simplified Method, the part of each payment that is tax free is the same as the tax-free amount figured by the retiree at the annuity starting date. See Simplified Method, earlier.

How to report.

If you file Form 1040, 1040-SR, or 1040-NR, report your total annuity on line﻿ ﻿5a, and the taxable part on line﻿ ﻿5b. If your pension or annuity is fully taxable, enter it on line﻿ ﻿5b. Don't make an entry on line 5a.

Example. You are a Form 1040 or 1040-SR filer and you received monthly payments totaling $1,200 (12 months x $100) during 2023 from a pension plan that was completely financed by your employer. You had paid no tax on the payments that your employer made to the plan, and the payments weren't used to pay for accident, health, or long-term care insurance premiums (as discussed later under Insurance Premiums for Retired Public Safety Officers). The entire $1,200 is taxable. You include $1,200 only on Form 1040 or 1040-SR, line﻿ ﻿5b.

Joint return.

If you file a joint return and you and your spouse each receive one or more pensions or annuities, report the total of the pensions and annuities on line﻿ ﻿5a of Form 1040, 1040-SR, or 1040-NR. Report the total of the taxable parts on line﻿ ﻿5b of Form 1040, 1040-SR, or 1040-NR.

Form 1099-R.

You should receive a Form 1099-R for your pension or annuity. Form 1099-R shows your pension or annuity for the year and any income tax withheld. You should receive a Form W-2, Wage and Tax Statement, if you receive distributions from certain nonqualified plans.

You must attach Forms 1099-R or Forms W-2 to your 2023 tax return if federal income tax was withheld. Generally, you should be sent these forms by January 31, 2024.

Nonperiodic Distributions

If you receive a nonperiodic distribution from your retirement plan, you may be able to exclude all or part of it from your income as a recovery of your cost. Nonperiodic distributions include cash withdrawals, distributions of current earnings (dividends) on your investment, and certain loans. For information on how to figure the taxable amount of a nonperiodic distribution, see Taxation of Nonperiodic Payments in Pub. 575.

The taxable part of a nonperiodic distribution may be subject to an additional 10% tax. See Tax on Early Distributions, later.

Lump-sum distributions.

If you receive a lump-sum distribution from a qualified employee plan or qualified employee annuity and the plan participant was born before January 2, 1936, you may be able to elect optional methods of figuring the tax on the distribution. The part from active participation in the plan before 1974 may qualify as capital gain subject to a 20% tax rate. The part from participation after 1973 (and any part from participation before 1974 that you don't report as capital gain) is ordinary income. You may be able to use the 10-year tax option (explained in Pub. 575) to figure tax on the ordinary income part.

Form 1099-R.

If you receive a total distribution from a plan, you should receive a Form 1099-R. If the distribution qualifies as a lump-sum distribution, box 3 shows the capital gain part of the distribution. The amount in box 2a, Taxable amount, minus the amount in box 3, Capital gain, is the ordinary income part.

More information.

For more detailed information on lump-sum distributions, see Pub. 575 or Form 4972, Tax on Lump-Sum Distributions.

Tax on Early Distributions

Most distributions you receive from your qualified retirement plan and nonqualified annuity contracts before you reach age 59﻿ ﻿1﻿/﻿2 are subject to an additional tax of 10%. The tax applies to the taxable part of the distribution.

For this purpose, a qualified retirement plan is:

A qualified employee plan (including a qualified cash or deferred arrangement (CODA) under Internal Revenue Code section 401(k)),

A qualified employee annuity plan,

A tax-sheltered annuity plan (section 403(b) plan),

An eligible state or local government section 457 deferred compensation plan (to the extent that any distribution is attributable to amounts the plan received in a direct transfer or rollover from one of the other plans listed here or an IRA), or

An IRA.

You may have to pay a 25%, rather than a 10%, additional tax if you receive distributions from a SIMPLE IRA before you are age 59﻿ ﻿1﻿/﻿2. See Pub. 560.

General exceptions to tax.

There are a number of exceptions to the early distribution tax. Some general exceptions include, but are not limited to, distributions:

Made as part of a series of substantially equal periodic payments (made at least annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary (if from a qualified retirement plan, the payments must begin after separation from service),

Made because you are totally and permanently disabled,

Made on or after the death of the plan participant or contract holder, or

Made because you separated from service in or after the year you reach age 55.

Reporting tax.

If you owe the tax on early distributions, you must generally attach Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to your 2023 income tax return. If you don’t have to file a 2023 income tax return, you may file Form 5329 by itself. See the Instructions for Form 5329. In addition, you don’t have to attach Form 5329 to your income tax return if distribution code 1 (early distribution, no known exception) is correctly shown in box 7 of all your Forms 1099-R, and you owe the additional tax on each Form 1099-R. Instead, multiply the taxable part of the early distribution by 10% (0.10), or 25% (0.25) if applicable, and enter the result on Schedule 2 (Form 1040), line﻿ ﻿8. See the instructions for Schedule 2 (Form 1040), line﻿ ﻿8, for more information about reporting the early distribution tax.

Tax on Excess Accumulation

To make sure that most of your retirement benefits are paid to you during your lifetime, rather than to your beneficiaries after your death, the payments that you receive from qualified retirement plans must begin no later than your required beginning date. Unless the rule for 5% owners applies, this is generally April 1 of the year that follows the later of:

The calendar year in which you reach age 73, or

The calendar year in which you retire from employment with the employer maintaining the plan.

 However, your plan may require you to begin to receive payments by April 1 of the year that follows the year in which you reach age 73, even if you haven't retired.

For this purpose, a qualified retirement plan includes:

A qualified employee plan,

A qualified employee annuity plan,

An eligible section 457 deferred compensation plan,

A tax-sheltered annuity plan (section 403(b) plan) (for benefits accruing after 1986), or

An IRA.

An excess accumulation is the undistributed remainder of the required minimum distribution that was left in your qualified retirement plan.

5% owners.

If you are a 5% owner, see Pub. 575 for more information on distribution dates.

Amount of tax.

If you don't receive the required minimum distribution, you may be subject to an additional tax. See Pub. 590-B and the Instructions for Form 5329 for more information.

Form 5329.

You must file a Form 5329 if you owe a tax because you didn't receive a minimum required distribution from your qualified retirement plan.

Additional information.

For more detailed information on the tax on excess accumulation, see Pub. 575.

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 who is retired because of disability or because you reached normal retirement age), 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. The premiums can be for coverage for you, your spouse, or dependent(s). The distribution must be from the plan maintained by the employer from which you retired as a public safety officer. The distribution can be made directly from the plan to the provider of the accident or health plan or long-term care insurance contract, or the distribution can be made to you to pay to the provider of the accident or health plan or long-term care insurance contract. You can exclude from income the lesser of the amount of the premiums paid or $3,000. You can make this election only for amounts that would otherwise be included in your income. The amount excluded from your income can't be used to claim a medical expense deduction.

An eligible retirement plan is a governmental plan that is a:

Qualified trust,

Section 403(a) plan,

Section 403(b) annuity, or

Section 457(b) plan.

If you received a distribution from your eligible retirement plan, and you used part of that distribution to pay premiums for an accident or health plan or long-term care insurance contract, you can still exclude from income only the lesser of the amount of the premiums paid or $3,000. The rest of the distribution is taxable to you and should be reported as follows.

If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. The taxable amount shown in box 2a of any Form 1099-R that you receive doesn't reflect the exclusion. Report your total distributions on Form 1040, 1040-SR, or 1040-NR, line﻿ ﻿5a. Report the taxable amount on Form 1040, 1040-SR, or 1040-NR, line﻿ ﻿5b. Enter “PSO” next to the appropriate line on which you report the taxable amount.

Railroad Retirement Benefits

Benefits paid under the Railroad Retirement Act fall into two categories. These categories are treated differently for income tax purposes.

Social security equivalent benefits.

The first category is the amount of tier 1 railroad retirement benefits that equals the social security benefit that a railroad employee or beneficiary would have been entitled to receive under the social security system. This part of the tier 1 benefit is the social security equivalent benefit (SSEB) and is treated for tax purposes like social security benefits. (See Social Security and Equivalent Railroad Retirement Benefits, later.)

Non-social security equivalent benefits.

The second category contains the rest of the tier 1 benefits, called the non-social security equivalent benefit (NSSEB). It also contains any tier 2 benefit, vested dual benefit (VDB), and supplemental annuity benefit. This category of benefits is treated as an amount received from a qualified employee plan. This allows for the tax-free (nontaxable) recovery of employee contributions from the tier 2 benefits and the NSSEB part of the tier 1 benefits. VDBs and supplemental annuity benefits are non-contributory pensions and are fully taxable.

More information.

For more information about railroad retirement benefits, see Pub. 575.

Military Retirement Pay

Military retirement pay based on age or length of service is taxable and must be included in income as a pension on Form 1040, 1040-SR, or 1040-NR, lines 5a and 5b. But, certain military and government disability pensions that are based on a percentage of disability from active service in the U.S. Armed Forces of any country generally aren't taxable. For more information, including information about veterans' benefits and insurance, see Pub. 525.

Social Security and Equivalent Railroad Retirement Benefits

This discussion explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits.

Social security benefits include monthly retirement, survivor, and disability benefits. They don't include supplemental security income (SSI) payments, which aren't taxable.

 Equivalent tier 1 railroad retirement benefits are the part of tier 1 benefits that a railroad employee or beneficiary would have been entitled to receive under the social security system. They are commonly called the social security equivalent benefit (SSEB) portion of tier 1 benefits.

If you received these benefits during 2023, you should have received a Form SSA-1099 or Form RRB-1099 (Form SSA-1042S or Form RRB-1042S if you are a nonresident alien) showing the amount of the benefits.

Social Security Information

Obtaining social security information.

Social security beneficiaries may quickly and easily obtain various information from the SSA's website with a my Social Security account to:

Keep track of your earnings and verify them every year,

Get an estimate of your future benefits if you are still working,

Get a letter with proof of your benefits if you currently receive them,

Change your address,

Start or change your direct deposit,

Get a replacement Medicare card, and

Get a replacement SSA-1099 or SSA-1042S for the tax season.

For more information and to set up an account, go to SSA.gov/myaccount.

Are Any of Your Benefits Taxable?

Note.  When the term “benefits” is used in this section, it applies to both social security benefits and the SSEB portion of tier 1 railroad retirement benefits.

To find out whether any of your benefits may be taxable, compare the base amount for your filing status (explained later) with the total of:

One-half of your benefits; plus

All your other income, including tax-exempt interest.

When making this comparison, don't reduce your other income by any exclusions for:

Interest from qualified U.S. savings bonds,

Employer-provided adoption benefits,

Foreign earned income or foreign housing, or

Income earned in American Samoa or Puerto Rico by bona fide residents.

Figuring total income.

To figure the total of one-half of your benefits plus your other income, use Worksheet 2-A. If that total amount is more than your base amount, part of your benefits may be taxable.

If you are married and file a joint return for 2023, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. Even if your spouse didn't receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable.

If the only income you received during 2023 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally aren't taxable and you probably don't have to file a return. If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable.

Keep for Your Records Keep for Your Records

Worksheet 2-A. A Quick Way To Check if Your Benefits May Be Taxable

A.

Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Include
the full amount of any lump-sum benefit payments received in 2023, for 2023 and
earlier years. (If you received more than one form, combine the amounts from box 5
and enter the total.)

A.

Note. If the amount on line A is zero or less, stop here; none of your benefits are
taxable this year.

B.

Enter one-half of the amount on line A

B.

C.

Enter your taxable pensions, wages, interest, dividends, and other taxable income

C.

D.

Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income for:
• Interest from qualified U.S. savings bonds,
• Employer-provided adoption benefits,
• Foreign earned income or foreign housing, or
• Income earned in American Samoa or Puerto Rico by bona fide residents

 D.

E.

Add lines B, C, and D and enter the total

 E.

F.

If you are:
 • Married filing jointly, enter $32,000;
 • Single, head of household, qualifying surviving spouse, or married filing separately and you lived apart from your spouse for all of 2023, enter $25,000; or
 • Married filing separately and you lived with your spouse at any time during 2023,
  enter -0-

 F.

G.

Is the amount on line F less than or equal to the amount on line E?
  □ No. None of your benefits are taxable this year.
  □ Yes. Some of your benefits may be taxable. To figure how much of your benefits
      are taxable, see Which worksheet to use under How Much Is Taxable.

Base Amount

Your base amount is:

$25,000 if you are single, head of household, or qualifying surviving spouse;

$25,000 if you are married filing separately and lived apart from your spouse for all of 2023;

$32,000 if you are married filing jointly; or

$0 if you are married filing separately and lived with your spouse at any time during 2023.

Repayment of Benefits

Any repayment of benefits you made during 2023 must be subtracted from the gross benefits you received in 2023. It doesn't matter whether the repayment was for a benefit you received in 2023 or in an earlier year. If you repaid more than the gross benefits you received in 2023, see Repayments More Than Gross Benefits, later.

Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. Your repayments are shown in box 4. The amount in box 5 shows your net benefits for 2023 (box 3 minus box 4). Use the amount in box 5 to figure whether any of your benefits are taxable.

Tax Withholding and Estimated Tax

You can choose to have federal income tax withheld from your social security and/or the SSEB portion of your tier 1 railroad retirement benefits. If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Request.

If you don't choose to have income tax withheld, you may have to request additional withholding from other income, or pay estimated tax during the year. For details, see Pub. 505, or the Instructions for Form 1040-ES, Estimated Tax for Individuals.

How Much Is Taxable?

If part of your benefits is taxable, how much is taxable depends on the total amount of your benefits and other income. Generally, the higher that total amount, the greater the taxable part of your benefits.

Maximum taxable part.

The taxable part of your benefits usually can't be more than 50%. However, up to 85% of your benefits can be taxable if either of the following situations applies to you.

The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly).

You are married filing separately and lived with your spouse at any time during 2023.

If you are a nonresident alien, 85% of your benefits are taxable. However, this income is exempt under some tax treaties.

Which worksheet to use.

A worksheet to figure your taxable benefits is in the Instructions for Form 1040. However, you will need to use a different worksheet(s) if any of the following situations applies to you.

You contributed to a traditional IRA and you or your spouse were covered by a retirement plan at work. In this situation, you must use the special worksheets in Pub. 590-A to figure both your IRA deduction and your taxable benefits.

Situation (1) doesn't apply and you take one or more of the following exclusions.

Interest from qualified U.S. savings bonds (Form 8815, Exclusion of Interests From Series EE and I U.S. Savings Bonds Issued After 1989).

Employer-provided adoption benefits (Form 8839, Qualified Adoption Expenses).

Foreign earned income or housing (Form 2555, Foreign Earned Income).

Income earned in American Samoa (Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa) or Puerto Rico by bona fide residents.

 In these situations, you must use Worksheet 1 in Pub. 915, to figure your taxable benefits.

You received a lump-sum payment for an earlier year. In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in Pub. 915. See Lump-Sum Election, later.

How To Report Your Benefits

If part of your benefits is taxable, you must use Form 1040, 1040-SR, or 1040-NR.

Reporting on Form 1040 or 1040-SR.

Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on line﻿ ﻿6a and the taxable part on line﻿ ﻿6b. If you are married filing separately and you lived apart from your spouse for all of 2023, also enter “D” to the right of the word “benefits” on line 6a.

Reporting on Form 1040-NR.

Report 85% of the total amount of your benefits (box 5 of your Form SSA-1042S or Form RRB-1042S) in the appropriate column of Schedule﻿ ﻿NEC (Form 1040-NR), line﻿ ﻿8.

Benefits not taxable.

Report your net benefits (the amount in box 5 of your Form SSA-1099 or Form RRB-1099) on Form 1040 or 1040-SR, line﻿ ﻿6a. Enter -0- on Form 1040 or 1040-SR, line﻿ ﻿6b. If you are married filing separately and you lived apart from your spouse for all of 2023, also enter “D” to the right of the word “benefits” on Form 1040 or 1040-SR, line﻿ ﻿6a.

Lump-Sum Election

You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2023 in your 2023 income, even if the payment includes benefits for an earlier year.

This type of lump-sum benefit payment shouldn't be confused with the lump-sum death benefit that both the SSA and Railroad Retirement Board (RRB) pay to many of their beneficiaries. No part of the lump-sum death benefit is subject to tax. For more information about the lump-sum death benefit, visit the SSA website at SSA.gov, and use keyword: “death benefit.”

Generally, you use your 2023 income to figure the taxable part of the total benefits received in 2023. However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. You can elect this method if it lowers your taxable benefits. See Pub. 915 for more information.

Repayments More Than Gross Benefits

In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year.

If you have any questions about this negative figure, contact your local SSA office or your local U.S. RRB field office.

Joint return.

If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5 but your spouse's doesn't, subtract the box 5 amount on your form from the box 5 amount on your spouse's form. You do this to get your net benefits when figuring if your combined benefits are taxable.

Repayment of benefits received in an earlier year.

If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you may be able to take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year.

The deduction must be more than $3,000 and you have to follow some special instructions. See Pub. 915 for those instructions.

Sickness and Injury Benefits

Generally, you must report as income any amount you receive for personal injury or sickness through an accident or health plan that is paid for by your employer. If both you and your employer pay for the plan, only the amount you receive that is due to your employer's payments is reported as income. However, certain payments may not be taxable to you. Some of these payments are discussed later in this section. Also, see Military and Government Disability Pensions and Other Sickness and Injury Benefits in Pub. 525.

Cost paid by you.

If you pay the entire cost of an accident or health plan, don't include any amounts you receive from the plan for personal injury or sickness as income on your tax return. If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income.

Disability Pensions

If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. You must report your taxable disability payments as wages on Form 1040, 1040-SR, or 1040-NR, line﻿ ﻿1h, until you reach minimum retirement age. Minimum retirement age is generally the age at which you can first receive a pension or annuity if you aren't disabled.

If you were age 65 or older by the end of 2023 or you were retired on permanent and total disability and received taxable disability income, you may be able to claim the credit for the elderly or the disabled. See Credit for the Elderly or the Disabled, later. For more information on this credit, see Pub. 524.

Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Report the payments on Form 1040, 1040-SR, or 1040-NR, lines 5a and 5b. For more information on pensions and annuities, see Pub. 575.

Note.

Don’t include in your income disability payments you receive for injuries incurred as a direct result of terrorist attacks or military action directed against the United States (or its allies), whether outside or within the United States. For more information, see Terrorist attacks in Pub. 525.

Retirement and profit-sharing plans.

If you receive payments from a retirement or profit-sharing plan that doesn't provide for disability retirement, don't treat the payments as a disability pension. The payments must be reported as a pension or annuity.

Accrued leave payment.

If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. The payment isn't a disability payment. Include it in your income in the tax year you receive it.

Long-Term Care Insurance Contracts

In most cases, long-term care insurance contracts are treated as accident and health insurance contracts. Amounts you receive from them (other than policyholder dividends or premium refunds) are generally excludable from income as amounts received for personal injury or sickness. However, the amount you can exclude may be limited. Long-term care insurance contracts are discussed in more detail in Pub. 525.

Workers' Compensation

Amounts you receive as workers' compensation for an occupational sickness or injury are fully exempt from tax if they are paid under a workers' compensation act or a statute in the nature of a workers' compensation act. The exemption also applies to your survivors. The exemption, however, doesn't apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury.

If part of your workers' compensation reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier.

Return to work.

If you return to work after qualifying for workers' compensation, salary payments you receive for performing light duties are taxable as wages.

Other Sickness and Injury Benefits

In addition to disability pensions and annuities, you may receive other payments for sickness or injury.

Federal Employees' Compensation Act (FECA).

Payments received under this Act for personal injury or sickness, including payments to beneficiaries in case of death, aren't taxable. However, you are taxed on amounts you receive under this Act as continuation of pay for up to 45 days while a claim is being decided. Report this income on Form 1040, 1040-SR, or 1040-NR, line﻿ ﻿1a. Also, pay for sick leave while a claim is being processed is taxable and must be included in your income as wages.

CautionIf part of the payments you receive under FECA reduces your social security or equivalent railroad retirement benefits, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. For a discussion of the taxability of these benefits, see Social Security and Equivalent Railroad Retirement Benefits, earlier.

Other compensation.

Many other amounts you receive as compensation for sickness or injury aren't taxable. These include the following amounts.

Benefits you receive under an accident or health insurance policy on which either you paid the premiums or your employer paid the premiums but you had to include the amount of employer-paid premiums in your income.

Compensatory damages you receive for physical injury or physical sickness, whether paid in a lump sum or in periodic payments.

Disability benefits you receive for loss of income or earning capacity as a result of injuries under a no-fault car insurance policy.

Compensation you receive for permanent loss or loss of use of a part or function of your body, for your permanent disfigurement, or for such loss or disfigurement suffered by your spouse or dependent(s). This compensation must be based only on the injury and not on the period of your absence from work. These benefits aren't taxable even if your employer pays for the accident and health plan that provides these benefits.

Life Insurance Proceeds

Life insurance proceeds paid to you because of the death of the insured person aren't taxable unless the policy was turned over to you for a price. This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract issued on or before December 31, 1984. However, interest income received as a result of life insurance proceeds may be taxable.

Proceeds not received in installments.

If death benefits are paid to you in a lump sum or other than at regular intervals, include in your income only the benefits that are more than the amount payable to you at the time of the insured person's death. If the benefit payable at death isn't specified, include in your income the benefit payments that are more than the present value of the payments at the time of death.

Proceeds received in installments.

If you receive life insurance proceeds in installments, you can exclude part of each installment from your income.

To determine the excluded part, divide the amount held by the insurance company (generally, the total lump-sum payable at the death of the insured person) by the number of installments to be paid. Include anything over this excluded part in your income as interest.

Installments for life.

If, as the beneficiary under an insurance contract, you are entitled to receive the proceeds in installments for the rest of your life without a refund or period-certain guarantee, figure the excluded part of each installment by dividing the amount held by the insurance company by your life expectancy. If there is a refund or period-certain guarantee, the amount held by the insurance company for this purpose is reduced by the actuarial value of the guarantee.

Surviving spouse.

If your spouse died before October 23, 1986, and insurance proceeds paid to you because of the death of your spouse are received in installments, you can exclude, in any year, up to $1,000 of the interest included in the installments. If you remarry, you can continue to take the exclusion.

Surrender of policy for cash.

If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. In general, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that weren't included in your income. You should receive a Form 1099-R showing the total proceeds and the taxable part. Report these amounts on Form 1040, 1040-SR, or 1040-NR, lines 5a and 5b.

Endowment Contract Proceeds

An endowment contract is a policy that pays you a specified amount of money on a certain date unless you die before that date, in which case the money is paid to your designated beneficiary. Endowment proceeds paid in a lump sum to you at maturity are taxable only if the proceeds are more than the cost of the policy. To determine your cost, subtract from the total premiums (or other consideration) paid for the contract any amount that you previously received under the contract and excluded from your income. Include in your income the part of the lump-sum payment that is more than your cost.

Endowment proceeds that you choose to receive in installments instead of a lump-sum payment at the maturity of the policy are taxed as an annuity. The tax treatment of an annuity is explained in Pub. 575. For this treatment to apply, you must choose to receive the proceeds in installments before receiving any part of the lump sum. This election must be made within 60 days after the lump-sum payment first becomes payable to you.

Accelerated Death Benefits

Certain amounts paid as accelerated death benefits under a life insurance contract or viatical settlement before the insured's death are generally excluded from income if the insured is terminally or chronically ill. However, see Exception, later. For a chronically ill individual, accelerated death benefits paid on the basis of costs incurred for qualified long-term care services are fully excludable. Accelerated death benefits paid on a per diem or other periodic basis without regard to the costs are excludable up to a limit.

In addition, if any portion of a death benefit under a life insurance contract on the life of a terminally or chronically ill individual is sold or assigned to a viatical settlement provider, the amount received is also excluded from income. Generally, a viatical settlement provider is one who regularly engages in the business of buying or taking assignment of life insurance contracts on the lives of insured individuals who are terminally or chronically ill.

 To report taxable accelerated death benefits made on a per diem or other periodic basis, you must file Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, with your return.

Terminally or chronically ill defined.

A terminally ill person is one who has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death within 24 months from the date of the certification. A chronically ill person is one who isn't terminally ill but has been certified (within the previous 12 months) by a licensed health care practitioner as meeting either of the following conditions.

The person is unable to perform (without substantial help) at least two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence) for a period of 90 days or more because of a loss of functional capacity.

The person requires substantial supervision to protect themselves from threats to health and safety due to severe cognitive impairment.

Exception.

The exclusion doesn't apply to any amount paid to a person other than the insured if that other person has an insurable interest in the life of the insured because the insured:

Is a director, officer, or employee of the other person; or

Has a financial interest in the business of the other person.

Sale of Home

You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return in most cases) on the sale of your main home. Generally, if you can exclude all of the gain, you don't need to report the sale on your tax return. You can choose not to take the exclusion by including the gain from the sale in your gross income on your tax return for the year of the sale.

Main home.

Usually, your main home is the home you live in most of the time and can be a:

House,

Houseboat,

Mobile home,

Cooperative apartment, or

Condominium.

Repaying the first-time homebuyer credit.

If you purchased your home in 2008 and claimed the first-time homebuyer credit, you must continue repaying the credit with your 2023 tax return. If you are required to repay the credit because you sold the home or it otherwise ceased to be your main home in 2023, you must generally repay the balance of the unpaid credit with your 2023 return. See the Instructions for Form 5405, Repayment of the First-Time Homebuyer Credit, for more information and exceptions.

Maximum Amount of Exclusion

You can generally exclude up to $250,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if all of the following are true.

You meet the ownership test.

You meet the use test.

During the 2-year period ending on the date of the sale, you didn't exclude gain from the sale of another home.

Joint returns.

You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements listed in the discussion of the special rules for joint returns, later, under Married Persons.

Reduced exclusion.

Even if you don't meet the requirements described above, you can still claim an exclusion in some cases. Generally, you must have sold the home due to a change in place of employment, health, or unforeseen circumstances. The maximum amount you can exclude will be reduced. See Pub. 523 for more information.

Expatriation tax.

You can't exclude gain from the sale of your home if you are subject to the expatriation tax. See Pub. 519 for more information about the expatriation tax.

Ownership and Use Tests

To claim the exclusion, you must meet the ownership and use tests. These tests generally require that during the 5-year period ending on the date of the sale, you must have:

Owned the home for at least 2 years (the ownership test), and

Lived in the home as your main home for at least 2 years (the use test). The 2 years of residence can fall anywhere within the 5-year period, and it doesn't need to be a single block of time.

Exception to use test for individuals with a disability.

There is an exception to the use test if, during the 5-year period before the sale of your home:

You become physically or mentally unable to care for yourself, and

You owned and lived in your home as your main home for a total of at least 1 year.

If you qualify for this exception, you are considered to live in your home during any time that you own the home and live in a facility (including a nursing home) that is licensed by a state or political subdivision to care for persons in your condition.

If you meet this exception to the use test, you still have to meet the 2-out-of-5-year ownership test to claim the exclusion.

Exception to ownership test for property acquired in a like-kind exchange.

If you acquired your main home in a like-kind exchange, you must own the home for 5 years before you qualify for the exclusion. This special 5-year ownership rule continues to apply to the home even if you give it to another person. A like-kind exchange is an exchange of property held for productive use in a trade or business or for investment in which no gain or loss is recognized. See Pub. 523 for more information.

Period of nonqualified use.

Generally, the gain from the sale or exchange of your main home won't qualify for the exclusion to the extent that the gain is allocated to periods of nonqualified use. Nonqualified use is any period after December 31, 2008, during which the property isn't used as the main home. See Pub. 523 for more information.

Married Persons

Generally, if the home you sold counts as your main home and you are a married person filing separately, the first $250,000 of gain isn't taxable if all of the following are true.

You meet the ownership test.

You meet the use test.

During the 2-year period ending on the date of the sale, you didn’t exclude gain from the sale of another home.

You may be able to exclude up to $500,000 of the gain (other than gain allocated to periods of nonqualified use) on the sale of your main home if you are married and file a joint return and meet the requirements for joint returns discussed under Special rules for joint returns next.

Special rules for joint returns.

You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true.

You are married and file a joint return for the year.

Either you or your spouse meets the ownership test.

Both you and your spouse meet the use test.

During the 2-year period ending on the date of the sale, neither you nor your spouse exclude gain from the sale of another home.

Sale of home by surviving spouse.

If your spouse died and you didn't remarry before the date of sale, you are considered to have owned and lived in the property as your main home during any period of time when your spouse owned and lived in it as a main home.

If you meet all of the following requirements, you may qualify to exclude up to $500,000 of any gain from the sale or exchange of your main home in 2023.

The sale or exchange took place no more than 2 years after the date of death of your spouse.

You haven't remarried.

You and your spouse met the use test at the time of your spouse's death.

You or your spouse met the ownership test at the time of your spouse's death.

Neither you nor your spouse excluded gain from the sale of another home during the last 2 years.

Home transferred from spouse.

If your home was transferred to you by your spouse (or former spouse if the transfer was incident to divorce), you are considered to have owned it during any period of time when your spouse owned it.

Use of home after divorce.

You are considered to have used property as your main home during any period when:

You owned it, and

Your spouse or former spouse is allowed to live in it under a divorce or separation instrument and uses it as their main home.

Business Use or Rental of Home

You may be able to exclude gain from the sale of a home that you have used for business or to produce rental income. However, you must meet the ownership and use tests. See Pub. 523 for more information.

Recapturing depreciation.

If you used all or part of your home for business or rental after May 6, 1997, you may need to pay back (recapture) some or all of the depreciation you were entitled to take on your property when you sell it. See Pub. 523 for more information.

Reporting the Sale

Don't report the 2023 sale of your main home on your tax return unless:

You received Form 1099-S, Proceeds From Real Estate Transactions;

You have a gain and you don't qualify to exclude all of it;

You have a gain and you choose not to exclude it; or

You have a loss from the sale that is deductible.

A loss from the sale of your home, or the personal part of your home if it was also used for business or to produce rental income, isn’t deductible.

If any of the above apply, report the sale on Part I or Part II of Form 8949 as a short-term or long-term transaction, depending on how long you owned the home. If you used your home for business or to produce rental income, you may have to use Form 4797, Sales of Business Property, to report the sale of the business or rental part. See Pub. 523 for more information.

Reverse Mortgages

A reverse mortgage is a loan where the lender pays you (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home. With a reverse mortgage, you retain title to your home. Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die. Because reverse mortgages are considered loan advances and not income, the amount you receive isn't taxable. Any interest (including original interest discount) accrued on a reverse mortgage isn’t deductible home mortgage interest. See Pub. 936 for more information.

Other Items

The following items are generally excluded from taxable income. You shouldn't report them on your return, unless otherwise indicated as taxable or includible in income.

Gifts and inheritances.

In most cases, property you receive as a gift, bequest, or inheritance isn't included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. If property is given to a trust and the income from it is paid, credited, or distributed to you, that income is also taxable to you. If the gift, bequest, or inheritance is the income from property, that income is taxable to you.

Veterans' benefits.

Don't include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the Department of Veterans Affairs (VA). See Pub. 525.

Public assistance benefits.

Other items that are generally excluded from taxable income also include the following public assistance benefits.

Welfare benefits.

Don't include in your income benefit payments from a public welfare fund based upon need, such as payments due to blindness. However, you must include in your income any welfare payments that are compensation for services or that are obtained fraudulently.

Payments from a state fund for victims of crime.

Don't include in your income payments from a state fund for victims of crime if the payments are in the nature of welfare payments. Don't deduct medical expenses that are reimbursed by such a fund.

Mortgage assistance payments.

Payments made under section 235 of the National Housing Act for mortgage assistance aren't included in the homeowner's income. Interest paid for the homeowner under the mortgage assistance program can't be deducted.

Also, mortgage payments provided under the Department of Housing and Urban Development's Emergency Homeowners' Loan Program (EHLP), state housing finance authorities receiving funds allocated from the Housing Finance Agency Innovation Fund for the Hardest-Hit Housing Markets (HFA Hardest Hit Fund), or other similar state programs receiving funding from the EHLP are excluded from income. See Form 1098-MA, Mortgage Assistance Payments, and its instructions for details.

Payments to reduce cost of winter energy use.

Payments made by a state to qualified people on the basis of need to reduce their cost of winter energy use aren't taxable.

Nutrition Program for the Elderly.

Food benefits you receive under the Nutrition Program for the Elderly aren't taxable. If you prepare and serve free meals for the program, include in your income as wages the cash pay you receive, even if you are also eligible for food benefits.

Reemployment Trade Adjustment Assistance (RTAA).

Payments you receive from a state agency under RTAA must be included in your income. The state must send you Form 1099-G, Certain Government Payments, to advise you of the amount you should include in income. The amount should be reported on Schedule 1 (Form 1040), line﻿ ﻿8z.

Persons with disabilities.

If you have a disability, include in income compensation you receive for services you perform unless the compensation is otherwise excluded. However, don't include in income the value of goods, services, and cash that you receive, not in return for your services, but for your training and rehabilitation because you have a disability. Excludable amounts include payments for transportation and attendant care, such as interpreter services for the deaf, reader services for the blind, and services to help individuals with an intellectual disability do their work.

Medicare.

Medicare benefits received under title XVIII of the Social Security Act aren't includible in the gross income of the individuals for whom they are paid. This includes basic (Part A (Hospital Insurance Benefits for the Aged)) and supplementary (Part B (Supplementary Medical Insurance Benefits for the Aged)).

Social security benefits.

The Social Security Administration (SSA) provides benefits such as old‐age benefits, benefits to disabled workers, and benefits to spouses and dependents. These benefits may be subject to federal income tax depending on your filing status and other income. See Social Security and Equivalent Railroad Retirement Benefits, earlier, and Pub. 915 for more information.

3.

Adjustments to Income

You may be able to subtract amounts from your total income (Form 1040 or 1040-SR, line﻿ ﻿9) or total effectively connected income (Form 1040-NR, line﻿ ﻿9) to get your adjusted gross income (Form 1040, 1040-SR, or 1040-NR, line﻿ ﻿11). Some adjustments to income follow.

Contributions to your IRA (Schedule 1 (Form 1040), line﻿ ﻿20), explained later.

Some health insurance costs (Schedule 1 (Form 1040), line﻿ ﻿17) if you were self-employed and had a net profit for the year, or if you received wages in 2023 from an S corporation in which you were a more-than-2% shareholder.

Payments to your self-employed SEP, SIMPLE, or qualified plan (Schedule 1 (Form 1040), line﻿ ﻿16). For more information, including limits on how much you can deduct, see Pub. 560.

Penalties paid on early withdrawal of savings (Schedule 1 (Form 1040), line﻿ ﻿18). Form 1099-INT, Interest Income, or Form 1099-OID, Original Issue Discount, will show the amount of any penalty you were charged.

Alimony payments (Schedule 1 (Form 1040), line﻿ ﻿19a). Certain conditions may apply for your alimony payment to be deductible from income. For more information, see Pub. 504.

There are other items you can claim as adjustments to income. These adjustments are discussed in your tax return instructions.

Individual Retirement Arrangement (IRA) Contributions and Deductions

This section explains the tax treatment of amounts you pay into traditional IRAs. A traditional IRA is any IRA that isn't a Roth or SIMPLE IRA. Roth and SIMPLE IRAs are defined earlier in the IRA discussion under Retirement Plan Distributions. For more detailed information, see Pub. 590-A and Pub. 590-B.

Contributions.

An IRA is a personal savings plan that offers you tax advantages to set aside money for your retirement. Two advantages of a traditional IRA are:

You may be able to deduct some or all of your contributions to it, depending on your circumstances; and

Generally, amounts in your IRA, including earnings and gains, aren't taxed until distributed.

CautionAlthough interest earned from your traditional IRA generally isn't taxed in the year earned, it isn't tax-exempt interest. Don't report this interest on your tax return as tax-exempt interest.

General limit.

The most that can be contributed for 2023 to your traditional IRA is the smaller of the following amounts.

Your taxable compensation for the year, or

$6,500 ($7,500 if you were age 50 or older by the end of 2023).

Contributions to Kay Bailey Hutchison Spousal IRAs.

In the case of a married couple filing a joint return for 2023, up to $6,500 ($7,500 for each spouse age 50 or older by the end of 2023) can be contributed to IRAs on behalf of each spouse, even if one spouse has little or no compensation.

For more information on the general limit and the Kay Bailey Hutchison Spousal IRA limit, see How Much Can Be Contributed? in Pub. 590-A.

Deductible contribution.

Generally, you can deduct the lesser of the contributions to your traditional IRA for the year or the general limit (or Kay Bailey Hutchison Spousal IRA limit, if applicable) just explained. However, if you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, you may not be able to deduct all of the contributions. Your deduction may be reduced or eliminated, depending on your filing status and the amount of your income. For more information, see Limit if Covered by Employer Plan in Pub. 590-A.

Nondeductible contribution.

The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. You must file Form 8606 to report nondeductible contributions even if you don't have to file a tax return for the year.

4.

Deductions

Most taxpayers have a choice of taking a standard deduction or itemizing their deductions. You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions. If you have a choice, you should use the method that gives you the lower tax.

Standard Deduction

The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether another taxpayer can claim you as a dependent. Generally, the standard deduction amounts are adjusted each year for inflation. In most cases, you can use Worksheet 4﻿-﻿1 to figure your standard deduction amount.

Persons not eligible for the standard deduction.

Your standard deduction is zero and you should itemize any deductions you have if:

You are married and filing a separate return, and your spouse itemizes deductions;

You are filing a tax return for a short tax year because of a change in your annual accounting period; or

You are a nonresident or dual-status alien during the year. You are considered a dual-status alien if you were both a nonresident alien and a resident alien during the year.

If you are a nonresident alien who is married to a U.S. citizen or resident alien at the end of the year, you can choose to be treated as a U.S. resident. See Pub. 519. If you make this choice, you can take the standard deduction.

Decedent's final return.

Decedent's final tax return should reflect the standard deduction that the decedent was entitled to claim at the time of their death. However, if the decedent wasn't age 65 or older at the time of death, the higher standard deduction for age can't be claimed. See Death before age 65, later.

Higher standard deduction for age (65 or older).

If you don't itemize deductions, you are entitled to a higher standard deduction if you are age 65 or older at the end of the year. You are considered age 65 on the day before your 65th birthday. Therefore, you can take a higher standard deduction for 2023 if you were born before January 2, 1959.

Death before age 65.

If you are preparing a return for someone who died in 2023, consider the taxpayer to be age 65 or older at the end of 2023 only if they were age 65 or older at the time of death. A taxpayer is considered age 65 on the day before their birthday.

Example. Your spouse was born on February 14, 1958, and died on February 13, 2023. Your spouse is considered age 65 at the time of death. However, if your spouse died on February 12, 2023, your spouse isn't considered age 65 at the time of death and isn't age 65 or older at the end of 2023.

Higher standard deduction for blindness.

If you are blind on the last day of the year and you don't itemize deductions, you are entitled to a higher standard deduction.

Not totally blind.

If you aren't totally blind, you must get a certified statement from an eye doctor (ophthalmologist or optometrist) that:

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

Your field of vision isn't more than 20 degrees.

If your eye condition isn’t likely to improve beyond these limits, the statement should include this fact. You must keep the statement in your records.

If your vision can be corrected beyond these limits only by contact lenses that you can wear only briefly because of pain, infection, or ulcers, you can take the higher standard deduction for blindness if you otherwise qualify.

Spouse age 65 or older or blind.

You can take the higher standard deduction if your spouse is age 65 or older or blind and:

You file a joint return, or

You file a separate return and your spouse had no gross income and can’t be claimed as a dependent by another taxpayer.

CautionYou can't claim the higher standard deduction for an individual other than yourself and your spouse.

Example. This example illustrates how to determine your standard deduction using Worksheet 4﻿-﻿1.

Jean and Terry are filing a joint return for 2023. Both are over age 65. Neither is blind, and neither can be claimed as a dependent. They don't itemize deductions, so they use Worksheet 4﻿-﻿1. Because they are married filing jointly, they enter $27,700 on line﻿ ﻿1. They check the “No” box on line﻿ ﻿2, so they also enter $27,700 on line﻿ ﻿4. Because they are both over age 65, they enter $3,000 ($1,500 × 2) on line﻿ ﻿5. They enter $30,700 ($27,700 + $3,000) on line﻿ ﻿6, so their standard deduction is $30,700.

Standard Deduction for Dependents

The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the greater of:

$1,250, or

The individual's earned income for the year plus $400 (but not more than the regular standard deduction amount).

However, the standard deduction may be higher if the individual is age 65 or older or blind.

If you (or your spouse, if you are filing jointly) can be claimed as a dependent on someone else's return, use Worksheet 4﻿-﻿1, if applicable, to determine your standard deduction.

Keep for Your Records Keep for Your Records

W﻿o﻿r﻿k﻿s﻿h﻿e﻿e﻿t﻿ ﻿4﻿-﻿1﻿.

2023 Standard Deduction Worksheet

Caution. If you are married filing separately and your spouse itemizes deductions, or if you are a dual-status alien, don't complete this worksheet.

If you were born before January 2, 1959, and/or you were blind at the end of 2023, check the correct box(es) below. Put the total number of boxes checked in box c and go to line﻿ ﻿1.

a.

You

Born before January 2, 1959 ⎕

Blind  ⎕

b.

Your spouse

Born before January 2, 1959 ⎕

Blind  ⎕

c.

Total boxes checked  ⎕

1.

Enter the amount shown below for your filing status.

Single or married filing separately—$13,850

Married filing jointly or qualifying surviving spouse—$27,700

Head of household—$20,800

 1.

2.

Can you (or your spouse, if filing jointly) be claimed as a dependent on someone else's return?
⎕No. Skip line﻿ ﻿3; enter the amount from line﻿ ﻿1 on line﻿ ﻿4.
⎕Yes. Go to line﻿ ﻿3.

3.

Is your earned income* more than $850?

⎕Yes. Add $400 to your earned income. Enter the total.

 3.

⎕No. Enter $1,250.

4.

Enter the smaller of line﻿ ﻿1 or line﻿ ﻿3

 4.

5.

If born before January 2, 1959, or blind, multiply the number in box c by $1,500 ($1,850 if single or head of household). Enter the result here. Otherwise, enter -0-

 5.

6.

Add lines 4 and 5. This is your standard deduction for 2023**

 6.

* 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 or 1040-SR, line﻿ ﻿1z, and Schedule 1 (Form 1040), lines 3, 6, 8r, 8t, and 8u minus the amount, if any, on Schedule 1 (Form 1040), line﻿ ﻿15.

** You may be able to increase the amount of your standard deduction on line﻿ ﻿6 by a loss you suffered related to property in one of the Presidentially declared disaster areas eligible for that relief. See Pub. 976 for more information.

Itemized Deductions

Some individuals should itemize their deductions because it will save them money. Others should itemize because they don't qualify for the standard deduction. See the discussion under Standard Deduction, earlier, to decide if it would be to your advantage to itemize deductions.

Medical and dental expenses, some taxes, certain interest expenses, charitable contributions, casualty and theft losses, and certain other expenses may be itemized as deductions on Schedule﻿ ﻿A (Form 1040).

You may benefit from itemizing your deductions on Schedule﻿ ﻿A (Form 1040) if you:

Can't take the standard deduction;

Had uninsured medical or dental expenses that are more than 7.5% of your adjusted gross income (AGI);

Paid interest on a loan secured by your home and that you used to buy, build, or improve your home;

Paid real estate or personal property taxes;

Paid state and local income taxes or general sales taxes;

Had large uninsured casualty or theft losses due to a federally declared disaster;

Made large contributions to qualified charities (see Pub. 526.); or

Have total itemized deductions that are more than the standard deduction that applies to you.

See the Instructions for Schedule﻿ ﻿A (Form 1040) for more information.

Medical and Dental Expenses

You can deduct certain medical and dental expenses you paid for yourself, your spouse, and your dependent(s) if you itemize your deductions on Schedule﻿ ﻿A (Form 1040).

Table 4﻿-﻿1 shows some common items that you can or can't include in figuring your medical expense deduction. For more information, see the following discussions of selected items, which are presented in alphabetical order. A more extensive list of items and further details can be found in Pub. 502.

Table 4﻿-﻿1.  Medical and Dental Expenses Checklist

You can include:

You can't include:

Bandages

Capital expenses for equipment or improvements to your home needed for medical care (see Pub. 502)

Certain weight-loss expenses for obesity

Diagnostic devices

Expenses of an organ donor

Eye surgery—to promote the correct function of the eye

Guide dogs or other service animals aiding the blind, deaf, and disabled

Hospital services fees (lab work, therapy, nursing services, surgery, etc.)

Lead-based paint removal (see Pub. 502)

Long-term care contracts, qualified (see Pub. 502)

Meals and lodging provided by a hospital during medical treatment

Medical and hospital insurance premiums

Medical services fees (from doctors, dentists, surgeons, specialists, and other medical practitioners)

Medicare Part D premiums

Oxygen equipment and oxygen

Part of life-care fee paid to retirement home designated for medical care

Prescription medicines (prescribed by a doctor) and insulin

Psychiatric and psychological treatment

Social security tax, Medicare tax, FUTA tax, and state employment tax for worker providing medical care (see Pub. 502)

Special items (artificial limbs, dentures, eyeglasses, contact lenses, hearing aids, crutches, wheelchair, etc.)

Special education for mentally or physically disabled persons (see Pub. 502)

Stop-smoking programs

Transportation for needed medical care

Treatment at a drug or alcohol center (includes meals and lodging provided by the center)

Wages for nursing services (see Pub. 502)

Bottled water

Contributions to Archer MSAs (see Pub. 969)

Diaper service

Expenses for your general health (even if following your doctor's advice) such as:
—Health club dues;
—Household help (even if recommended by a doctor);
—Social activities, such as dancing or swimming lessons; and
—Trip for general health improvement

Flexible spending account reimbursements for medical expenses (if contributions were on a pre-tax basis) (see Pub. 502)

Funeral, burial, or cremation expenses

Health savings account payments for medical expenses (see Pub. 502)

Illegal operation or treatment

Life insurance or income protection policies, or policies providing payment for loss of life, limb, sight, etc.

Medical insurance included in a car insurance policy covering all persons injured in or by your car

Medicine you buy without a prescription

Nursing care for a healthy baby

Prescription drugs you brought in (or ordered shipped) from another country, in most cases (see Pub. 502)

Surgery for purely cosmetic reasons (see Pub. 502)

Toothpaste, toiletries, cosmetics, etc.

Teeth whitening

Weight-loss expenses not for the treatment of obesity or other disease

You can deduct only the amount of your medical and dental expenses that is more than 7.5% of your AGI.

What to include.

Generally, you can include only the medical and dental expenses you paid this year, regardless of when the services were provided. If you pay medical expenses by check, the day you mail or deliver the check is generally the date of payment. If you use a pay-by-phone or online account to pay your medical expenses, the date reported on the statement of the financial institution showing when payment was made is the date of payment. You can include medical expenses you charge to your credit card in the year the charge is made. It doesn't matter when you actually pay the amount charged.

Home Improvements

You can include in medical expenses amounts you pay for home improvements if their main purpose is medical care for you, your spouse, or your dependent(s).

Only reasonable costs to accommodate a home to your disabled condition (or that of your spouse or your dependent(s) who lives with you) are considered medical care. Additional costs for personal motives, such as for architectural or aesthetic reasons, aren't medical expenses. Pub. 502 contains additional information and examples, including a capital expense worksheet, to assist you in figuring the amount of the capital expense that you can include in your medical expenses. Also, see Pub. 502 for information about deductible operating and upkeep expenses related to such capital expense items, and for information about improvements, for medical reasons, to property rented by a person with disabilities.

Household Help

You can't include in medical expenses the cost of household help, even if such help is recommended by a doctor. This is a personal expense that isn't deductible. However, you may be able to include certain expenses paid to a person providing nursing-type services. For more information, see Nursing Services, later. Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. For more information, see Qualified long-term care services under Long-Term Care, later.

Hospital Services

You can include in medical expenses amounts you pay for the cost of inpatient care at a hospital or similar institution if a principal reason for being there is to receive medical care. This includes amounts paid for meals and lodging. Also, see Meals and Lodging, later.

Long-Term Care

You can include in medical expenses amounts paid for qualified long-term care services and certain amounts of premiums paid for qualified long-term care insurance contracts.

Qualified long-term care services.

Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are:

Required by a chronically ill individual, and

Provided under a plan of care prescribed by a licensed health care practitioner.

Chronically ill individual.

An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions.

The individual is unable to perform at least two activities of daily living without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity. Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence.

The individual requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment.

Maintenance and personal care services.

Maintenance or personal care services is care that has as its primary purpose the providing of a chronically ill individual with needed assistance with their disabilities (including protection from threats to health and safety due to severe cognitive impairment).

Qualified long-term care insurance contracts.

A qualified long-term care insurance contract is an insurance contract that provides only coverage of qualified long-term care services. The contract must:

Be guaranteed renewable;

Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed;

Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract must be used only to reduce future premiums or increase future benefits; and

Generally not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer, or the contract makes per diem or other periodic payments without regard to expenses.

The amount of qualified long-term care premiums you can include is limited. You can include the following as medical expenses on Schedule﻿ ﻿A (Form 1040).

Qualified long-term care premiums up to the following amounts.

Age 40 or under—$480.

Age 41 to 50—$890.

Age 51 to 60—$1,790.

Age 61 to 70—$4,770.

Age 71 or over—$5,960.

Unreimbursed expenses for qualified long-term care services.

Note. The limit on premiums is for each person.

Meals and Lodging

You can include in medical expenses the cost of meals and lodging at a hospital or similar institution if your main reason for being there is to receive medical care.

You may be able to include in medical expenses the cost of lodging (but not meals) not provided in a hospital or similar institution. You can include the cost of such lodging while away from home if all of the following requirements are met.

The lodging is primarily for, and essential to, medical care.

The medical care is provided by a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital.

The lodging isn't lavish or extravagant under the circumstances.

There is no significant element of personal pleasure, recreation, or vacation in the travel away from home.

The amount you include in medical expenses for lodging can't be more than $50 per night for each person. You can include lodging for a person traveling with the person receiving the medical care. For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. (Meals aren't included.)

Nursing home.

You can include in medical expenses the cost of medical care in a nursing home or a home for the aged for yourself, your spouse, or your dependent(s). This includes the cost of meals and lodging in the home if a main reason for being there is to get medical care.

Don't include the cost of meals and lodging if the reason for being in the home is personal. However, you can include in medical expenses the part of the cost that is for medical or nursing care.

Medical Insurance Premiums

You can include in medical expenses insurance premiums you pay for policies that cover medical care. Policies can provide payment for:

Hospitalization, surgical fees, X-rays;

Prescription drugs and insulin;

Dental care;

Replacement of lost or damaged contact lenses; and

Qualified long-term care insurance contracts (subject to the additional limits included in the discussion on qualified long-term care insurance contracts under Long-Term Care, earlier).

If you have a policy that provides payments for other than medical care, you can include the premiums for the medical care part of the policy if the charge for the medical part is reasonable. The cost of the medical portion must be separately stated in the insurance contract or given to you in a separate statement.

Medicare Part A.

If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare Part A. The payroll tax paid for Medicare Part A isn't a medical expense. If you aren't covered under social security (or weren't a government employee who paid Medicare tax), you can enroll voluntarily in Medicare Part A. In this situation, you can include the premiums you paid for Medicare Part A as a medical expense.

Medicare Part B.

Medicare Part B is a supplemental medical insurance. Premiums you pay for Medicare Part B are a medical expense. Check the information you received from the SSA to find out your premium.

Social security beneficiaries may quickly and easily obtain various information from the SSA’s website with a my Social Security account, including getting a replacement SSA‐1099 or SSA‐1042S. For more information, see Obtaining social security information, earlier.

Medicare Part D.

Medicare Part D is a voluntary prescription drug insurance program for persons with Medicare Part A or Part B. You can include as a medical expense premiums you pay for Medicare Part D.

Prepaid insurance premiums.

Insurance premiums you pay before you are age 65 for medical care for yourself, your spouse, or your dependents after you reach age 65 are medical care expenses in the year paid if they are:

Payable in equal yearly installments or more often; and

Payable for at least 10 years, or until you reach age 65 (but not for less than 5 years).

Medicines

You can include in medical expenses amounts you pay for prescribed medicines and drugs. A prescribed drug is one that requires a prescription by a doctor for its use by an individual. You can also include amounts you pay for insulin. Except for insulin, you can't include in medical expenses amounts you pay for a drug that isn't prescribed.

Imported medicines and drugs.

If you import medicines or drugs from other countries, see Medicines and Drugs From Other Countries under What Expenses Aren't Includible in Pub. 502.

Nursing Services

You can include in medical expenses wages and other amounts you pay for nursing services. The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. This includes services connected with caring for the patient's condition, such as giving medication or changing dressings, as well as bathing and grooming the patient. These services can be provided in your home or another care facility.

Generally, only the amount spent for nursing services is a medical expense. If the attendant also provides personal and household services, amounts paid to the attendant must be divided between the time spent performing household and personal services and the time spent for nursing services. However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. See Maintenance and personal care services under Qualified long-term care services, earlier. Additionally, certain expenses for household services or for the care of a qualifying individual incurred to allow you to work may qualify for the child and dependent care credit. See Child and Dependent Care Credit, later, and Pub. 503.

You can also include in medical expenses part of the amount you pay for that attendant's meals. Divide the food expense among the household members to find the cost of the attendant's food. Then, divide that cost in the same manner as in the preceding paragraph. If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant.

Employment taxes.

You can include as a medical expense social security tax, FUTA tax, Medicare tax, and state employment taxes you pay for a nurse, attendant, or other person who provides medical care. If the attendant also provides personal and household services, you can include as a medical expense only the amount of employment taxes paid for medical services as explained earlier under Nursing Services. For information on employment tax responsibilities of household employers, see Pub. 926.

Transportation

You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care.

Car expenses.

You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. You can't include depreciation, insurance, general repair, or maintenance expenses.

If you don't want to use your actual expenses for 2023, you can use the standard medical mileage rate of 22 cents a mile.

You can also include parking fees and tolls. You can add these fees and tolls to your medical expenses whether you use actual expenses or use the standard mileage rate.

You can also include:

Bus, taxi, train, or plane fares or ambulance service; and

Transportation expenses of a nurse or other person who can give injections, medications, or other treatment required by a patient who is traveling to get medical care and is unable to travel alone.

Don't include transportation expenses if, for purely personal reasons, you choose to travel to another city for an operation or other medical care prescribed by your doctor.

5.

Credits

This chapter briefly discusses the credit for the elderly or the disabled, the child and dependent care credit, and the earned income credit. You may be able to reduce your federal income tax by claiming one or more of these credits. You may also be able to increase your refund by claiming the earned income credit.

Credit for the Elderly or the Disabled

This section explains who qualifies for the credit for the elderly or the disabled and how to figure this credit. For more information, see Pub. 524.

You can take the credit only if you file Form 1040 or 1040-SR. You can't take the credit if you file Form 1040-NR.

Can You Take the Credit?

You can take the credit for the elderly or the disabled if you meet both of the following requirements.

You are a qualified individual.

Your income isn't more than certain limits.

You can use Figure 5-A and Figure 5-B as guides to see if you are eligible for the credit.

Figure 5-A. Are You a Qualified Individual?

Qualified Individual

You are a qualified individual for this credit if you are a U.S. citizen or resident alien, and either of the following applies.

You were age 65 or older at the end of 2023.

You were under age 65 at the end of 2023 and all three of the following statements are true.

You retired on permanent and total disability (explained later).

You received taxable disability income for 2023.

On January 1, 2023, you had not reached mandatory retirement age (defined, later, under Disability income).

Age 65. You are considered to be age 65 on the day before your 65th birthday. As a result, if you were born on January 1, 1959, you are considered to be age 65 at the end of 2023.

U.S. citizen or resident alien.

You must be a U.S. citizen or resident alien (or be treated as a resident alien) to take the credit. Generally, you can't take the credit if you were a nonresident alien at any time during the tax year.

Exceptions.

You may be able to take the credit if you are a nonresident alien who is married to a U.S. citizen or resident alien at the end of the tax year and you and your spouse choose to treat you as a U.S. resident alien. If you make that choice, both you and your spouse are taxed on your worldwide income.

If you were a nonresident alien at the beginning of the year and a resident alien at the end of the year, and you were married to a U.S. citizen or resident alien at the end of the year, you may be able to choose to be treated as a U.S. resident alien for the entire year. In that case, you may be allowed to take the credit.

For information on these choices, see chapter﻿ ﻿1 of Pub. 519.

Married persons.

Generally, if you are married at the end of the tax year, you and your spouse must file a joint return to take the credit. However, if you and your spouse didn't live in the same household at any time during the tax year, you can file either a joint return or separate returns and still take the credit.

Head of household.

You can file as head of household and qualify to take the credit even if your spouse lived with you during the first 6 months of the year if you meet certain tests. See Pub. 524 and Pub. 501.

Under age 65.

If you are under age 65 at the end of 2023, you can qualify for the credit only if you are retired on permanent and total disability and have taxable disability income (discussed later under Disability income). You are considered to be under age 65 at the end of 2023 if you were born after January 1, 1959. You are retired on permanent and total disability if:

You were permanently and totally disabled when you retired, and

You retired on disability before the end of the tax year.

Even if you don't retire formally, you may be considered retired on disability when you have stopped working because of your disability. If you retired on disability before 1977, and weren't permanently and totally disabled at the time, you can qualify for the credit if you were permanently and totally disabled on January 1, 1976, or January 1, 1977.

Permanent and total disability.

You are permanently and totally disabled if you can't engage in any substantial gainful activity because of your physical or mental condition. A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. See Physician's statement, later.

Substantial gainful activity.

Substantial gainful activity is the performance of significant duties over a reasonable period of time while working for pay or profit, or in work generally done for pay or profit.

Full-time work (or part-time work done at the employer's convenience) in a competitive work situation for at least the minimum wage conclusively shows that you are able to engage in substantial gainful activity.

Substantial gainful activity isn't work you do to take care of yourself or your home. It isn't unpaid work on hobbies, institutional therapy or training, school attendance, clubs, social programs, and similar activities. However, doing this kind of work may show that you are able to engage in substantial gainful activity.

Figure 5-B. Income Limits

IF your filing status is...

THEN even if you qualify (see Figure 5-A), you CAN’T take the credit if:

The amount on your Form 1040 or 1040-SR, line﻿ ﻿11, is equal to or more than...

OR the total of your nontaxable social security and other nontaxable pension(s), annuities, or disability income is equal to or more than...

single, head of household, or qualifying surviving spouse

$17,500

$5,000

married filing jointly and only one spouse qualifies in Figure 5-A

$20,000

$5,000

married filing jointly and both spouses qualify in Figure 5-A

$25,000

$7,500

married filing separately and you lived apart from your spouse for all of 2023

$12,500

$3,750

The fact that you haven't worked or have been unemployed for some time isn't, of itself, conclusive evidence that you can't engage in substantial gainful activity.

Physician's statement.

If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired.

You don't have to file this statement with your tax return, but you must keep it for your records. The Instructions for Schedule﻿ ﻿R (Form 1040) include a statement your physician can complete and that you can keep for your records.

Veterans.

If the VA certifies that you are permanently and totally disabled, you can substitute VA Form 21﻿-﻿0172, Certification of Permanent and Total Disability, for the physician's statement you are required to keep. VA Form 21﻿-﻿0172 must be signed by a person authorized by the VA to do so. You can get this form from your local VA regional office.

Physician's statement obtained in earlier year.

If you got a physician's statement in an earlier year and, due to your continued disability, you were unable to engage in any substantial gainful activity during 2023, you may not need to get another physician's statement for 2023. For a detailed explanation of the conditions you must meet, see the instructions for Schedule﻿ ﻿R (Form 1040), Part II. If you meet the required conditions, you must check the box on Schedule﻿ ﻿R (Form 1040), Part II, line﻿ ﻿2.

If you checked Schedule﻿ ﻿R (Form 1040), Part I, box 4, 5, or 6, enter in the space above the box in Part II, line﻿ ﻿2, the first name(s) of the spouse(s) for whom the box is checked.

Disability income.

If you are under age 65, you must also have taxable disability income to qualify for the credit.

Disability income must meet the following two requirements.

It must be paid under your employer's accident or health plan or pension plan.

It must be included in your income as wages (or payments in lieu of wages) for the time you are absent from work because of permanent and total disability.

Payments that aren't disability income.

Any payment you receive from a plan that doesn't provide for disability retirement isn't disability income. Any lump-sum payment for accrued annual leave that you receive when you retire on disability is a salary payment and isn't disability income.

For purposes of the credit for the elderly or the disabled, disability income doesn't include amounts you receive after you reach mandatory retirement age. Mandatory retirement age is the age set by your employer at which you would have had to retire had you not become disabled.

Figuring the Credit

You can figure the credit yourself or allow the IRS to figure it for you.

Figuring the credit yourself.

If you figure the credit yourself, fill out the front of Schedule﻿ ﻿R (Form 1040). Next, fill out Schedule﻿ ﻿R (Form 1040), Part III.

Credit figured for you.

If you can take the credit and you want the IRS to figure the credit for you, see Pub. 524 or the Instructions for Schedule﻿ ﻿R (Form 1040). If you want the IRS to figure your tax, see chapter﻿ ﻿13 of Pub. 17.

Child and Dependent Care Credit

You may be able to claim this credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who isn't able to care for themselves. The credit can be up to 35% of your expenses. To qualify, you must pay these expenses so you can work or look for work.

If you claim this credit, you must include on your return the name and taxpayer identification number (generally, the social security number) of each qualifying person for whom care is provided. You must also show on your return the name, address, and taxpayer identification number of the person(s) or organization(s) that provided the care. If the correct information isn't shown, the credit may be reduced or disallowed.

For more information, see Pub. 503.

Earned Income Credit (EIC)

The EIC is a refundable tax credit for certain people who work and have earned income under $63,398. The EIC is available to persons with or without a qualifying child.

Credit has no effect on certain welfare benefits.

Any refund you receive because of the EIC can't be counted as income when determining whether 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 the following.

Medicaid.

SSI.

Supplemental Nutrition Assistance Program (SNAP) (food stamps).

Low-income housing.

Temporary Assistance for Needy Families (TANF).

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.

Do You Qualify for the EIC?

Use Table 5﻿-﻿1 as a starting point to the rules you must meet in order to qualify for the EIC. The specific rules you must meet depend on whether you have a qualifying child.

If you have a qualifying child, the rules in Parts A, B, and D apply to you.

If you don't have a qualifying child, the rules in Parts A, C, and D apply to you.

If you think you may qualify for the credit after reading all the rules in each part, see Pub. 596, for more details about the EIC. You can also find information about the EIC in the instructions for Form 1040, line﻿ ﻿27.

The sections that follow provide additional information for some of the rules.

Adjusted gross income (AGI).

Under Rule 1, you can't claim the EIC unless your AGI is less than the applicable limit shown in Part A of Table 5﻿-﻿1. Your AGI is the amount on line﻿ ﻿11 of Form 1040 or 1040-SR.

Table 5﻿-﻿1. Earned Income Credit (EIC) in a Nutshell

First, you must meet all the rules in this column.

Second, you must meet all the rules in one of these columns, whichever applies.

Third, you must meet the rule in this column.

Part A.
Rules for Everyone

Part B.
Rules if You Have a Qualifying Child

Part C.
Rules if You Don't Have a Qualifying Child

Part D.
Figuring and Claiming the EIC

1. Your adjusted gross income (AGI) must be less than:
•$56,838 ($63,398 for married filing jointly) if you have three or more qualifying children who have valid SSNs,
•$52,918 ($59,478 for married filing jointly) if you have two qualifying children who have valid SSNs,
•$46,560 ($53,120 for married filing jointly) if you have one qualifying child who has a valid SSN, or
•$17,640 ($24,210 for married filing jointly) if you don't have a qualifying child who has a valid SSN.

2. You must have a valid SSN by the due date of your 2023 return (including extensions).
3. You must meet certain requirements if you are separated from your spouse and not filing a joint return.
4. You must be a U.S. citizen or resident alien all year. (However, see Pub. 596 if your filing status is married filing jointly.)
5. You can't file Form 2555 (relating to foreign earned income).
6. Your investment income must be $11,000 or less.  
7. You must have earned income.

8. Your child must meet the relationship, age, residency, and joint return tests.
9. Your qualifying child can't be used by more than one person to claim the EIC.
10. You can't be a qualifying child of another person.

11. You must meet the age requirements.
12. You can't be the dependent of another person.
13. You can't be a qualifying child of another person.
14. You must have lived in the United States more than half of the year.

15. Your earned income must be less than:
•$56,838 ($63,398 for married filing jointly) if you have three or more qualifying children who have valid SSNs,
•$52,918 ($59,478 for married filing jointly) if you have two qualifying children who have valid SSNs,
•$46,560 ($53,120 for married filing jointly) if you have one qualifying child who has a valid SSN, or
•$17,640 ($24,210 for married filing jointly) if you don't have a qualifying child who has a valid SSN.

Social security number (SSN).

Under Rule 2, you (and your spouse, if you are married filing jointly) must have a valid SSN issued by the SSA. Any qualifying child listed on Schedule﻿ ﻿EIC must also have a valid SSN. (See Qualifying child, later, if you have a qualifying child.)

An SSN is valid for the EIC unless it was issued after the due date of your 2023 return (including extensions) or it was issued solely to apply for or receive a federally funded benefit and does not authorize you to work. An example of a federally funded benefit is Medicaid.

Investment income.

Under Rule 6, you can't claim the EIC unless your investment income is $11,000 or less. If your investment income is more than $11,000, you can't claim the credit. For most people, investment income is the total of the following amounts.

Taxable interest (line﻿ ﻿2b of Form 1040 or 1040-SR).

Tax-exempt interest (line﻿ ﻿2a of Form 1040 or 1040-SR).

Dividend income (line﻿ ﻿3b of Form 1040 or 1040-SR).

Capital gain net income (line﻿ ﻿7 of Form 1040 or 1040-SR, if more than zero).

For more information about investment income, see Pub. 596.

Earned income.

Under Rule 7, you must have earned income to claim the EIC. Under Rule 15, you can't claim the EIC unless your earned income is less than the applicable limit shown in Table 5﻿-﻿1, Part D. Earned income includes all of the following types of income.

Wages, salaries, tips, and other taxable employee pay. Employee pay is earned income only if it is taxable. Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, isn't earned income. But there is an exception for nontaxable combat pay, which you can choose to include in earned income.

Net earnings from self-employment.

Gross income received as a statutory employee.

Gross income defined.

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). Don't include any social security benefits unless (a) you are married filing a separate tax return and you lived with your spouse at any time in 2023, 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 Form 1040, lines 6a and 6b, to figure the taxable part of social security benefits you must include in gross income.

Self-employed persons.

If you are self-employed and your net earnings are $400 or more, be sure to correctly fill out Schedule﻿ ﻿SE (Form 1040), Self-Employment Tax, and pay the proper amount of self-employment tax. If you don't, you may not get all the credit to which you are entitled.

Disability benefits.

If you retired on disability, taxable benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Minimum retirement age is generally the earliest age at which you could have received a pension or annuity if you weren't disabled. Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension and aren't considered earned income.

Payments you received from a disability insurance policy that you paid the premiums for aren't earned income. It doesn't matter whether you have reached minimum retirement age. If this policy is through your employer, the amount may be shown in box 12 of your Form W-2 with code J.

Income that isn't earned income.

Examples of items that aren't earned income under Rule 7 include:

Interest and dividends;

Pensions and annuities;

Social security and railroad retirement benefits (including disability benefits—except for payments covered under Disability benefits, earlier);

Alimony and child support;

Welfare benefits;

Workers' compensation benefits;

Unemployment compensation (insurance);

Nontaxable foster care payments; and

Veterans' benefits, including VA rehabilitation payments.

Don't include any of these items in your earned income.

Workfare payments.

Nontaxable workfare payments aren't earned income for the EIC. These are cash payments certain people receive from a state or local agency that administers public assistance programs funded under the federal TANF program in return for certain work activities such as (1) work experience activities (including remodeling or repairing public housing) if sufficient private sector employment isn't available, or (2) community service program activities.

Qualifying child.

Under Rule 8, your child is a qualifying child if your child meets four tests. The four tests are:

Relationship,

Age,

Joint return, and

Residency.

The four tests are illustrated in Figure 5-C. See Pub. 596 for more information about each test.

Figure 5-C. Tests for Qualifying Child

A qualifying child for the EIC is a child who is your...

Son, daughter, stepchild, eligible foster child,
or a descendant of any of them (for example, your grandchild)

OR

Brother, sister, half brother, half sister, stepbrother,
stepsister, or a descendant of any of them (for example, your
niece or nephew)

was...

Under age 19 at the end of 2023 and younger than you (or your spouse, if filing jointly)

OR

Under age 24 at the end of 2023, a student, and younger than you (or your spouse, if filing jointly)

OR

Permanently and totally disabled at any time during the year, regardless of age

who...

Isn’t filing a joint return for 2023
(or is filing a joint return for 2023 only to claim a refund of income tax withheld or estimated tax paid)

who...

Lived with you in the United States for more than half
of 2023.
If the child didn't live with you for the
required time, see Pub. 596 for more information.

Figuring the EIC

To figure the amount of your credit, you have two choices.

Have the IRS figure the EIC for you. If you want to do this, see IRS Will Figure the EIC for You in Pub. 596.

Figure the EIC yourself. If you want to do this, see How To Figure the EIC Yourself in Pub. 596.

6.

Estimated Tax

Estimated tax is a method used to pay tax on income that isn't subject to withholding. This income includes self-employment income, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards.

Income tax is generally withheld from pensions and annuity payments you receive. However, if the tax withheld from your pension (or other) income isn't enough, you may have to pay estimated tax. If you don't pay enough tax through withholding, by making estimated tax payments, or both, you may be charged a penalty.

Who Must Make Estimated Tax Payments

If you had a tax liability for 2023, you may have to pay estimated tax for 2024. In most cases, you must pay estimated tax for 2024 if both of the following apply.

You expect to owe at least $1,000 in tax for 2024, after subtracting your withholding and tax credits.

You expect your withholding and tax credits to be less than the smaller of:

90% of the tax to be shown on your 2024 tax return, or

100% of the tax shown on your 2023 tax return. The 2023 tax return must cover all 12 months.

If all of your income is subject to income tax withholding and enough tax is withheld, you probably don't need to make estimated tax payments.

For more information on estimated tax, see Pub. 505.

7.

How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, forms, or instructions, go to IRS.gov to find resources that can help you right away.

Preparing and filing your tax return.

After receiving all your wage and earnings statements (Forms W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return.

Free options for tax preparation.

Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

Free File. This program lets you prepare and file your federal individual income tax return for free using software or Free File Fillable Forms. However, state tax preparation may not be available through Free File. Go to IRS.gov/FreeFile to see if you qualify for free online federal tax preparation, e-filing, and direct deposit or payment options.

VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, and limited-English-speaking taxpayers who need help preparing their own tax returns. Go to IRS.gov/VITA, download the free IRS2Go app, or call 800﻿-﻿906﻿-﻿9887 for information on free tax return preparation.

TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. Go to IRS.gov/TCE or download the free IRS2Go app for information on free tax return preparation.

MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military OneSource. For more information, go to MilitaryOneSource (MilitaryOneSource.mil/MilTax).Also, the IRS offers Free Fillable Forms, which can be completed online and then e-filed regardless of income.

Using online tools to help prepare your return.

Go to IRS.gov/Tools for the following.

The Earned Income Tax Credit Assistant (IRS.gov/EITCAssistant) determines if you’re eligible for the earned income credit (EIC).

The Online EIN Application (IRS.gov/EIN) helps you get an employer identification number (EIN) at no cost.

The Tax Withholding Estimator (IRS.gov/W4App) makes it easier for you to estimate the federal income tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

The First-Time Homebuyer Credit Account Look-up (IRS.gov/HomeBuyer) tool provides information on your repayments and account balance.

The Sales Tax Deduction Calculator (IRS.gov/SalesTax) figures the amount you can claim if you itemize deductions on Schedule﻿ ﻿A (Form 1040).

Getting answers to your tax questions.On IRS.gov, you can get up-to-date information on current events and changes in tax law.

IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

IRS.gov/ITA: The Interactive Tax Assistant, a tool that will ask you questions and, based on your input, provide answers on a number of tax topics.

IRS.gov/Forms: Find forms, instructions, and publications. You will find details on the most recent tax changes and interactive links to help you find answers to your questions.

You may also be able to access tax information in your e-filing software.

Need someone to prepare your tax return?

There are various types of tax return preparers, including enrolled agents, certified public accountants (CPAs), accountants, and many others who don’t have professional credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is:

Primarily responsible for the overall substantive accuracy of your return,

Required to sign the return, and

Required to include their preparer tax identification number (PTIN).

Although the tax preparer always signs the return, you're ultimately responsible for providing all the information required for the preparer to accurately prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business Services Online.

The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement, and Form W-2c, Corrected Wage and Tax Statement.

IRS social media.

Go to IRS.gov/SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our highest priority. We use these tools to share public information with you. Don’t post your social security number (SSN) or other confidential information on social media sites. Always protect your identity when using any social networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, Spanish, and ASL.

Youtube.com/irsvideos.

Youtube.com/irsvideosmultilingua.

Youtube.com/irsvideosASL.

Watching IRS videos.

The IRS Video portal (IRSVideos.gov) contains video and audio presentations for individuals, small businesses, and tax professionals.

Online tax information in other languages.

You can find information on IRS.gov/MyLanguage if English isn’t your native language.

Free Over-the-Phone Interpreter (OPI) Service.

The IRS is committed to serving taxpayers with limited-English proficiency (LEP) by offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), most IRS offices, and every VITA/TCE tax return site. The OPI Service is accessible in more than 350 languages.

Accessibility Helpline available for taxpayers with disabilities.

Taxpayers who need information about accessibility services can call 833﻿-﻿690﻿-﻿0598. The Accessibility Helpline can answer questions related to current and future accessibility products and services available in alternative media formats (for example, braille, large print, audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or account-related issues, go to IRS.gov/LetUsHelp.

Note. Form 9000, Alternative Media Preference, or Form 9000(SP) allows you to elect to receive certain types of written correspondence in the following formats.

Standard Print.

Large Print.

Braille.

Audio (MP3).

Plain Text File (TXT).

Braille Ready File (BRF).

Disasters.

Go to IRS.gov/DisasterRelief to review the available disaster tax relief.

Getting tax forms and publications.

Go to IRS.gov/Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to IRS.gov/OrderForms to place an order.

Getting tax publications and instructions in eBook format.

Download and view most tax publications and instructions (including the Instructions for Form 1040) on mobile devices as eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple's iBooks for iPad. Our eBooks haven’t been tested on other dedicated eBook readers, and eBook functionality may not operate as intended.

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 and a breakdown by tax year.

See payment plan details or apply for a new payment plan.

Make a payment or view 5 years of payment history and any pending or scheduled payments.

Access your tax records, including key data from your most recent tax return, and transcripts.

View digital copies of select notices from the IRS.

Approve or reject authorization requests from tax professionals.

View your address on file or manage your communication preferences.

Get a transcript of your return.

With an online account, you can access a variety of information to help you during the filing season. You can get a transcript, review your most recently filed tax return, and get your adjusted gross income. Create or access your online account at IRS.gov/Account.

Tax Pro Account.

This tool lets your tax professional submit an authorization request to access your individual taxpayer IRS online account. For more information, go to IRS.gov/TaxProAccount.

Using direct deposit.

The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, which securely and electronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, destroyed, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their refunds. If you don’t have a bank account, go to IRS.gov/DirectDeposit for more information on where to find a bank or credit union that can open an account online.

Reporting and resolving your tax-related identity theft issues.

Tax-related identity theft happens when someone steals your personal information to commit tax fraud. Your taxes can be affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

The IRS doesn’t initiate contact with taxpayers by email, text messages (including shortened links), telephone calls, or social media channels to request or verify personal or financial information. This includes requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other financial accounts.

Go to IRS.gov/IdentityTheft, the IRS Identity Theft Central webpage, for information on identity theft and data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take.

Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN. To learn more, go to IRS.gov/IPPIN.

Ways to check on the status of your refund.

Go to IRS.gov/Refunds.

Download the official IRS2Go app to your mobile device to check your refund status.

Call the automated refund hotline at 800﻿-﻿829﻿-﻿1954.

The IRS can’t issue refunds before mid-February for returns that claimed the EIC or the additional child tax credit (ACTC). This applies to the entire refund, not just the portion associated with these credits.

Making a tax payment.

Payments of U.S. tax must be remitted to the IRS in U.S. dollars. Digital assets are not accepted. Go to IRS.gov/Payments for information on how to make a payment using any of the following options.

IRS Direct Pay: Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you.

Debit Card, Credit Card, or Digital Wallet: Choose an approved payment processor to pay online or by phone.

Electronic Funds Withdrawal: Schedule a payment when filing your federal taxes using tax return preparation software or through a tax professional.

Electronic Federal Tax Payment System: Best option for businesses. Enrollment is required.

Check or Money Order: Mail your payment to the address listed on the notice or instructions.

Cash: You may be able to pay your taxes with cash at a participating retail store.

Same-Day Wire: You may be able to do same-day wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to ensure that the electronic payments you make online, by phone, or from a mobile device using the IRS2Go app are safe and secure. Paying electronically is quick, easy, and faster than mailing in a check or money order.

What if I can’t pay now?

Go to IRS.gov/Payments for more information about your options.

Apply for an online payment agreement (IRS.gov/OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

Use the Offer in Compromise Pre-Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more information on the Offer in Compromise program, go to IRS.gov/OIC.

Filing an amended return.

Go to IRS.gov/Form1040X for information and updates.

Checking the status of your amended return.

Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns.

It can take up to 3 weeks from the date you filed your amended return for it to show up in our system, and processing it can take up to 16 weeks.

Understanding an IRS notice or letter you’ve received.

Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

Responding to an IRS notice or letter.

You can now upload responses to all notices and letters using the Document Upload Tool. For notices that require additional action, taxpayers will be redirected appropriately on IRS.gov to take further action. To learn more about the tool, go to IRS.gov/Upload.

Note. You can use Schedule﻿ ﻿LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may not immediately receive written communications in the requested language. The IRS’s commitment to LEP taxpayers is part of a multi-year timeline that began providing translations in 2023. You will continue to receive communications, including notices and letters, in English until they are translated to your preferred language.

Contacting your local TAC.

Keep in mind, many questions can be answered on IRS.gov without visiting a TAC. Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) Is Here To Help You

What Is TAS?

TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Their job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights.

How Can You Learn About Your Taxpayer Rights?

The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.

What Can TAS Do for You?

TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. 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; or

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 TAS?

TAS has offices in every state, the District of Columbia, and Puerto Rico. To find your advocate’s number:

Go to TaxpayerAdvocate.IRS.gov/Contact-Us;

Download Pub. 1546, The Taxpayer Advocate Service Is Your Voice at the IRS, available at IRS.gov/pub/irs-pdf/p1546.pdf;

Call the IRS toll free at 800-TAX-FORM (800﻿-﻿829﻿-﻿3676) to order a copy of Pub. 1546;

Check your local directory; or

Call TAS toll free at 877﻿-﻿777﻿-﻿4778.

How Else Does TAS Help Taxpayers?

TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, report it to TAS at IRS.gov/SAMS. Be sure to not include any personal taxpayer information.

Low Income Taxpayer Clinics (LITCs)

LITCs are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, LITCs can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. For more information or to find an LITC near you, go to the LITC page at TaxpayerAdvocate.IRS.gov/LITC or see IRS Pub. 4134, Low Income Taxpayer Clinic List, at IRS.gov/pub/irs-pdf/p4134.pdf.

Index

A | B | C | D | E | F | G | H | I | L | M | N | O | P | Q | R | S | T | U | V | W

A

Accelerated death benefits Accelerated Death Benefits

Accounting periods:

Change in, standard deduction not allowed Persons not eligible﻿…

Accrued leave payment:

Disability retirement and Accrued leave payment

Adjusted gross income (AGI) Adjustments to Income

Adjustments to income Adjustments to Income

Age:

Elderly or disabled credit, requirements for Qualified Individual

Standard deduction for age 65 or older Higher standard deduction﻿…

American Association of Retired Persons (AARP) Volunteer Income Tax﻿…

Annuities Pensions and Annuities

Assistance (See Tax help)

B

Base amount, social security benefits Base Amount

Benefits:

Accident or health Other compensation.

Long-term care Long-Term Care Insurance﻿…

No-fault insurance Other compensation.

Sickness and injury Sickness and Injury﻿…

Social security Are Any of Your Benefits﻿…

Veterans' Veterans' benefits.

Bequests Gifts and inheritances

Blind persons:

Standard deduction for Higher standard deduction﻿…

C

Child and dependent care credit Child and Dependent﻿…

Children:

Standard deduction for Standard Deduction for﻿…

Chronically ill persons Chronically ill individual

Chronically ill, defined Terminally or chronically﻿…

Compensation:

Compensatory damages Other compensation.

For services Compensation for Services

Loss or disfigurement Other compensation.

Contributions:

Foreign employment Foreign employment contributions

Pension or annuity Cost.

Cost, pension or annuity Cost.

Credits:

Child and dependent care Child and Dependent﻿…

Earned income Earned Income Credit﻿…

Elderly or disabled Credit for the Elderly﻿…

D

Death benefit, accelerated Accelerated Death Benefits

Decedents Dependents.

Standard deduction Decedent's final return

Deductions:

Generally Deductions

Insurance premiums Medical Insurance Premiums

Itemized Itemized Deductions

Meals and lodging Meals and Lodging

Medical and dental Medical and Dental Expenses

Standard Standard Deduction

Dependents Dependents.

Standard deduction for Standard Deduction for﻿…

Disability Permanent and total﻿…

Credit for, permanently and totally disabled Credit for the Elderly﻿…

Income Other compensation., Payments that aren't﻿…

Definition and exceptions, for elderly and disabled credit Disability income.

Exclusions from, generally Persons with disabilities

Inclusions in, generally Persons with disabilities

Sale of home, for persons with (See (See Sale of home))

Distributions, retirement plan Retirement Plan Distributions

Drugs (See Medicines)

Dual-status taxpayers:

Standard deduction Persons not eligible﻿…

E

Early distributions, tax Tax on Early Distributions

Earned income credit Earned Income Credit﻿…

Elderly:

Credit for, persons who are Credit for the Elderly﻿…

Employment tax withholding Employment tax withholding

Employment taxes Employment taxes.

Endowment proceeds Endowment Contract Proceeds

Estimated tax Tax Withholding and﻿…, Estimated Tax, Who Must Make Estimated﻿…

Excess accumulation, tax on Tax on Excess Accumulation

Exclusion, gain on sale of home:

Expatriate tax, effect of Maximum Amount of Exclusion

F

Federal Employees:

Compensation Act (FECA) payments Federal Employees' Compensation﻿…

Filing requirements:

Decedents Dependents.

General requirements General Requirements

Surviving spouse Surviving spouse.

Final return for decedent:

Standard deduction Decedent's final return

First-time homebuyer credit:

Repayment Repaying the first-time﻿…

Form:

1099-R Form 1099-R.

5329 Form 5329.

8853 Accelerated Death Benefits

Schedule R Credit for the Elderly﻿…

W-4P Withholding.

G

Gain on sale of home (See Sale of home)

General rule, pension or annuity Pensions and Annuities

Gifts Gifts and inheritances

H

Home care (See Nursing services)

Home improvements Home Improvements

Home, sale of (See Sale of home)

Hospital services Hospital Services

Household help Household Help

I

Income:

Adjustments Adjustments to Income

Disability payments, reporting for Disability Pensions

Earned income, defined Earned Income Credit﻿…

Gross, defined Gross income.

Nontaxable, generally Taxable and Nontaxable﻿…

Sale of home Sale of Home

Self-employment Self-employed persons

Taxable, generally Taxable and Nontaxable﻿…

Individual retirement arrangement (IRA):

Adjustments to income Individual Retirement﻿…

Contributions Contributions.

Deductible contribution Deductible contribution

Distributions Individual Retirement﻿…

Inheritances Gifts and inheritances

Injury benefits Sickness and Injury﻿…, Cost paid by you.

Insurance:

Accident and health Other compensation., Medical Insurance Premiums

Benefits, long-term care Long-Term Care Insurance﻿…

Benefits, no-fault insurance Other compensation.

Life insurance proceeds Life Insurance Proceeds

Proceeds paid after death Life Insurance Proceeds

Proceeds paid before death Accelerated Death Benefits

Insurance premiums for retired public safety officers Insurance Premiums for﻿…

Itemized deductions Itemized Deductions

Married filing separately:

One spouse has itemized Persons not eligible﻿…

L

Life insurance proceeds Life Insurance Proceeds

Long-term care Long-Term Care

Chronically ill individuals Chronically ill individual

Maintenance and personal care services Maintenance and personal﻿…

Qualified insurance contracts Qualified long-term﻿…

Qualified services Qualified long-term﻿…

Long-term care insurance Long-Term Care Insurance﻿…

Loss or disfigurement compensation Other compensation.

Lump-sum death benefits Social security benefits

Lump-sum distributions Lump-sum distributions

Lump-sum election, social security Lump-Sum Election

M

Maintenance and personal care services Maintenance and personal﻿…

Married filing separately:

Itemized deductions:

One spouse has itemized so other must as well Persons not eligible﻿…

Married taxpayers:

Age 65 or older spouse:

Standard deduction Spouse age 65 or older﻿…

Blind spouse:

Standard deduction Spouse age 65 or older﻿…

Meals and lodging expenses Meals and Lodging

Medical expenses Medical and Dental Expenses

Medicare Medicare Part A., Medicare Part B., Medicare Part D.

Benefits Medicare.

Medicines Medicines

Imported Imported medicines and﻿…

Military retirement pay Military Retirement﻿…

Minimum distributions Tax on Excess Accumulation

Missing children Photographs of missing﻿…

Mortgage assistance payments Mortgage assistance﻿…

N

Nonperiodic distributions Nonperiodic Distributions

Nonqualified use Period of nonqualified﻿…

Nonresident aliens:

Standard deduction Persons not eligible﻿…

Nontaxable income Payments from a state﻿…

Accident or health insurance benefits Other compensation.

Bequests Gifts and inheritances

Generally Taxable and Nontaxable﻿…

Gifts Gifts and inheritances

Inheritances Gifts and inheritances

Mortgage assistance payments Mortgage assistance﻿…

No-fault insurance benefits Other compensation.

Nutrition program for elderly Nutrition Program for﻿…

Public assistance payments Welfare benefits.

Sickness and injury benefits Sickness and Injury﻿…

Veterans' benefits Veterans' benefits.

Winter energy use Payments to reduce cost﻿…

Workers' compensation Workers' Compensation

Nursing home Nursing home.

Nursing services Nursing Services

Chronically ill individuals Chronically ill individual

Nutrition program for elderly Nutrition Program for﻿…

O

Other items Other Items

P

Payments, estimated tax Estimated Tax

Pensions Pensions and Annuities

Pensions, disability Disability Pensions

Photographs, missing children Photographs of missing﻿…

Prepaid insurance premiums Prepaid insurance premiums

Preparer, paid Tax return preparers

Preparing your return Return preparation assistance

Profit-sharing plan Retirement and profit-sharing﻿…

Public assistance payments Welfare benefits.

Publications (See Tax help)

Q

Qualified retirement plan Tax on Early Distributions

R

Railroad retirement benefits Railroad Retirement﻿…, Social Security and﻿…

Repayments:

Social security benefits Repayment of Benefits

Reporting pension income How to report.

Residence, sale of (See Sale of home)

Retirement plans, distributions Retirement Plan Distributions

Returns:

Decedent Dependents.

Executors and administrators Dependents.

Filing requirements 2023 Filing Requirements

Surviving spouse Surviving spouse.

Reverse mortgages Reverse Mortgages

S

Salaries (See Compensation)

Sale of home Exception to use test﻿…

Main home, definition of Sale of Home

Ownership and use test Ownership and Use Tests

Surviving spouse Sale of home by surviving﻿…

Self-employed Self-employed persons

Short tax year:

Change in annual accounting period Persons not eligible﻿…

Sickness and injury benefits Sickness and Injury﻿…

Simplified method Pensions and Annuities

How to use How to use the Simplified﻿…

Who can’t use Who can't use the Simplified﻿…

Who must use Simplified Method.

Social security benefits Social Security and﻿…

lump-sum payments attributable to prior years Social security benefits

Standard deduction Standard Deduction

Age 65 or older Higher standard deduction﻿…

Blind persons Higher standard deduction﻿…

Dependents Standard Deduction for﻿…

Final return of decedent Decedent's final return

Married filing separately:

One spouse has itemized Persons not eligible﻿…

Starting date, annuity Annuity starting date

State fund for victims of crime Payments from a state﻿…

Supplemental Security Income (SSI) benefits Social security benefits

Surrender of Iife insurance Surrender of policy﻿…

Surviving spouse Surviving spouse.

Surviving spouse, insurance Surviving spouse.

Survivors of retirees Survivors of retirees

T

Tax:

Early distributions Tax on Early Distributions

Estimated Tax Withholding and﻿…, Estimated Tax

Excess accumulation Tax on Excess Accumulation

Tax counseling for the elderly (TCE) Volunteer Income Tax﻿…

Tax help How To Get Tax Help

Tax option, 10-year Lump-sum distributions

Tax return preparers Tax return preparers

Taxable income:

Generally Taxable and Nontaxable﻿…

Taxation of benefits Are Any of Your Benefits﻿…

Terminally ill, defined Terminally or chronically﻿…

Transportation expenses Transportation

U

U.S. citizen or resident alien:

Eligibility for elderly or disabled credit:

Exceptions for certain nonresident aliens U.S. citizen or resident﻿…

Filing requirements General Requirements

Unemployment compensation Unemployment compensation

V

Veterans' benefits Veterans' benefits.

Viatical settlement Accelerated Death Benefits

Victims of crime Payments from a state﻿…

Volunteer income tax assistance (VITA) Volunteer Income Tax﻿…

Volunteer work Volunteer work.

W

Wages (See Compensation)

Winter energy use payments Payments to reduce cost﻿…

Withholding:

Employment tax Employment tax withholding

Pensions and annuities Withholding.

Workers' compensation Workers' Compensation

Worksheets, social security Which worksheet to use