Including the instructions for (2021)
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TAX YEAR
2021
1040 (and
1040-SR)
INSTRUCTIONS
R
Including the instructions for
Schedules 1 through 3
2021 Changes
American Rescue Plan (ARP) of
2021. The following ARP provisions
affect tax year 2021.
• Child and dependent care credit
increased.
• Self-only EIC expanded.
• Child tax credit expanded. Advance
payments of the child tax credit were
made in 2021.
For details on these and other
changes, see What’s New in these
instructions.
Future Developments
See IRS.gov and IRS.gov/Forms, and for the latest information about developments related to Forms 1040 and
1040-SR and their instructions, such as legislation enacted after they were published, go to IRS.gov/Form1040.
Free File is the fast, safe, and free way to prepare and e-file your taxes. See IRS.gov/FreeFile.
Pay Online. It’s fast, simple, and secure. Go to IRS.gov/Payments.
Department of the Treasury Internal Revenue Service www.irs.gov
Dec 21, 2021
Cat. No. 24811V
Table of Contents
Contents
Department
of the
Treasury
Internal
Revenue
Service
Page
What's New . . . . . . . . . . . . . . . . . . . . . . . . 6
Filing Requirements . . . . . . . . . . . . . . . . . . 9
Do You Have To File? . . . . . . . . . . . . . . 9
When and Where Should You File? . . . . . 9
Line Instructions for Forms 1040 and
1040-SR . . . . . . . . . . . . . . . . . . . . . . 13
Filing Status . . . . . . . . . . . . . . . . . . . 13
Name and Address . . . . . . . . . . . . . . . 15
Social Security Number (SSN) . . . . . . . 15
Dependents, Qualifying Child for
Child Tax Credit, and Credit for
Other Dependents . . . . . . . . . . . . . . 18
Income . . . . . . . . . . . . . . . . . . . . . . . 23
Total Income and Adjusted Gross
Income . . . . . . . . . . . . . . . . . . . . . 30
Tax and Credits . . . . . . . . . . . . . . . . . 30
Payments . . . . . . . . . . . . . . . . . . . . . 37
Refund . . . . . . . . . . . . . . . . . . . . . . . 58
Amount You Owe . . . . . . . . . . . . . . . . 61
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Contents
Page
Sign Your Return . . . . . . . . . . . . . . . . 63
Assemble Your Return . . . . . . . . . . . . 64
2021 Tax Table . . . . . . . . . . . . . . . . . . . . 65
General Information . . . . . . . . . . . . . . . . . 78
Refund Information . . . . . . . . . . . . . . . . . . 83
Instructions for Schedule 1 . . . . . . . . . . . . . 84
Instructions for Schedule 2 . . . . . . . . . . . . . 96
Instructions for Schedule 3 . . . . . . . . . . . . 101
Tax Topics . . . . . . . . . . . . . . . . . . . . . . 105
Disclosure, Privacy Act, and Paperwork
Reduction Act Notice . . . . . . . . . . . . 107
Major Categories of Federal Income and
Outlays for Fiscal Year 2020 . . . . . . . 109
Index . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Form 1040 and 1040-SR
Helpful Hints
For 2021, you will use Form 1040 or, if you were born before January 2, 1957, you have the option to use
Form 1040-SR.
You may only need to file Form 1040 or 1040-SR and none of the numbered schedules, Schedules 1 through
3. However, if your return is more complicated (for example, you claim certain deductions or credits or owe
additional taxes), you will need to complete one or more of the numbered schedules. Below is a general guide
to which schedule(s) you will need to file based on your circumstances. See the instructions for the schedules
for more information.
If you e-file your return, you generally won't notice much of a change and the software you use will generally
determine which schedules you need.
IF YOU...
THEN USE...
Have additional income, such as business or farm income or
loss, unemployment compensation, prize or award money, or
gambling winnings.
Schedule 1, Part I
Have any deductions to claim, such as student loan interest,
self-employment tax, or educator expenses.
Schedule 1, Part II
Owe alternative minimum tax (AMT) or need to make an
excess advance premium tax credit repayment.
Schedule 2, Part I
Owe other taxes, such as self-employment tax, household
employment taxes, additional tax on IRAs or other qualified
retirement plans and tax-favored accounts.
Schedule 2, Part II
Can claim a nonrefundable credit (other than the nonrefundable
child tax credit or the credit for other dependents), such as the
foreign tax credit, education credits, or general business credit.
Schedule 3, Part I
Can claim a refundable credit (other than the earned income
credit, American opportunity credit, refundable child tax credit,
additional child tax credit, or recovery rebate credit), such as the
net premium tax credit, health coverage tax credit, or qualified
sick and family leave credits from Schedule H or Schedule SE.
Have other payments, such as an amount paid with a request for
an extension to file or excess social security tax withheld.
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Schedule 3, Part II
The Taxpayer Advocate Service Is Here To Help You
What is the Taxpayer Advocate Service?
The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS) that helps
taxpayers and protects taxpayer rights. TAS strives to ensure that every taxpayer is treated fairly and that you know and
understand your rights under the Taxpayer Bill of Rights.
What can TAS do for you?
TAS can help you if your tax problem is causing a financial difficulty, you've tried and been unable to resolve your issue with
the IRS, or you believe an IRS system, process, or procedure just isn't working as it should. And the service is free. If you
qualify for TAS 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 a financial difficulty for you, your family, or your business.
• You face (or your business is facing) an immediate threat of adverse action.
• You’ve tried to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.
How can you reach TAS?
We have 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 Publication 1546, Taxpayer Advocate Service - We Are Here to Help You, available at IRS.gov/Forms-Pubs. If
you do not have internet access, you can call the IRS toll free at 800-829-3676 and ask for a copy of Publication 1546;
• Check your local directory; or
• Call TAS toll free at 877-777-4778.
How can you learn about your taxpayer rights?
The Taxpayer Bill of Rights describes ten basic rights that all taxpayers have when dealing with the IRS. The TAS Tax Toolkit
at TaxpayerAdvocate.IRS.gov can help you understand what these rights mean to you and how they apply. These are your rights.
Know them.
How else does the Taxpayer Advocate Service help taxpayers?
TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it
to TAS at IRS.gov/SAMS. Be sure not to include any personal taxpayer information.
Low Income Taxpayer Clinics Help Taxpayers
Low Income Taxpayer Clinics (LITCs) are independent from the Internal Revenue Service (IRS) and the Taxpayer Advocate
Service (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, see
the LITC page at TaxpayerAdvocate.IRS.gov/LITCMap or IRS Publication 4134, Low Income Taxpayer Clinic List. This
publication is available online at IRS.gov/Forms-Pubs or by calling the IRS toll free at 800-829-3676.
Suggestions for Improving the IRS
Taxpayer Advocacy Panel
Taxpayers have an opportunity to provide direct feedback to the Internal Revenue Service (IRS) through the Taxpayer Advocacy
Panel (TAP). The TAP is a Federal Advisory Committee comprised of an independent panel of citizen volunteers who listen to
taxpayers, identify taxpayers' systemic issues, and make suggestions for improving IRS customer service. Contact TAP at
ImproveIRS.org.
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Affordable Care Act — What You Need To Know
Requirement To Reconcile Advance Payments of the Premium Tax Credit
The premium tax credit helps pay premiums for health insurance purchased from the Marketplace. Eligible
individuals may have advance payments of the premium tax credit made on their behalf directly to the insurance
company.
If you or a family member enrolled in health insurance through the Marketplace and advance payments of the
premium tax credit were made to your insurance company to reduce your monthly premium payment, you must attach
Form 8962 to your return to reconcile (compare) the advance payments with your premium tax credit for the year.
The Marketplace is required to send Form 1095-A by January 31, 2022, listing the advance payments and other
information you need to complete Form 8962.
1. You will need Form 1095-A from the Marketplace.
2. Complete Form 8962 to claim the credit and to reconcile your advance credit payments.
3. Include Form 8962 with your Form 1040, Form 1040-SR, or Form 1040-NR. (Don’t include Form 1095-A.)
Health Coverage Reporting
If you or someone in your family was an employee in 2021, the employer may be required to send you Form
1095-C. Part II of Form 1095-C shows whether your employer offered you health insurance coverage and, if
so, information about the offer. You should receive Form 1095-C by early February 2022. This information may
be relevant if you purchased health insurance coverage for 2021 through the Health Insurance Marketplace
and wish to claim the premium tax credit on Schedule 3, line 9. However, you don’t need to wait to receive this
form to file your return. You may rely on other information received from your employer. If you don’t wish to claim
the premium tax credit for 2021, you don’t need the information in Part II of Form 1095-C. For more information
on who is eligible for the premium tax credit, see the Instructions for Form 8962.
Reminder: Health care coverage. If you need health care coverage, go to www.HealthCare.gov to learn about
health insurance options for you and your family, how to buy health insurance, and how you might qualify to get
financial assistance to buy health insurance.
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What's New
Due date of return. File Form 1040 or
1040-SR by April 18, 2022. The due
date is April 18, instead of April 15, because of the Emancipation Day holiday
in the District of Columbia – even if you
don’t live in the District of Columbia. If
you live in Maine or Massachusetts, you
have until April 19, 2022. That is because of the Patriots' Day holiday in
those states.
Tuition and fees deduction not available. The tuition and fees deduction is
not available after 2020. Instead, the income limitations for the lifetime learning credit have been increased. See
Form 8863 and its instructions.
Economic impact payment—EIP 3.
Any economic impact payment you received is not taxable for federal income
tax purposes, but will reduce your recovery rebate credit.
2021 Recovery rebate credit. This
credit is figured like last year's economic
impact payment, EIP 3, except eligibility and the amount of the credit are based
on your tax year 2021 information. See
the instructions for line 30 and the Recovery Rebate Credit Worksheet to figure your credit amount.
Standard deduction amount increased. For 2021, the standard deduction amount has been increased for all
filers. The amounts are:
• Single or Married filing separately—$12,550.
• Married filing jointly or Qualifying widow(er)—$25,100.
• Head of household—$18,800.
Virtual currency. If, in 2021, you engaged in a transaction involving virtual
currency, you will need to answer “Yes”
to the question on page 1 of Form 1040
or 1040-SR. See Virtual Currency, later,
for information on transactions involving virtual currency. Do not leave this
field blank. The question must be answered by all taxpayers, not just taxpayers who engaged in a transaction involving virtual currency.
Credits for sick and family leave for
certain self-employed individuals.
For information about any additional changes to the 2021 tax law or any other developments affecting Form 1040 or 1040-SR or the instructions, go to IRS.gov/
Form1040.
The Families First Coronavirus Response Act (FFCRA) helped self-employed individuals affected by coronavirus by providing paid sick leave and
paid family leave credits equivalent to
those that employers are required to provide their employees for qualified sick
leave wages and qualified family leave
wages. The COVID-related Tax Relief
Act of 2020 extended the period during
which individuals can claim these credits. For more information, see the instructions for Form 7202 and Schedule
3, line 13b.
Extension and expansion of credits for
sick and family leave. The American
Rescue Plan Act of 2021, enacted on
March 11, 2021 (ARP) provides that
certain self-employed individuals can
claim credits for up to 10 days of “paid
sick leave,” and up to 60 days of “paid
family leave,” if they are unable to work
or telework due to circumstances related
to coronavirus. Self-employed individuals may claim these credits for the period beginning on April 1, 2021, and ending September 30, 2021. For more
information, see the instructions for
Form 7202 and Schedule 3, line 13h.
Form 9000, Alternative Media Preference. Beginning in 2021, taxpayers
with print disabilities can use Form
9000, Alternative Media Preference, to
elect to receive notices from the IRS in
an alternative format including Braille,
large print, audio, and electronic. You
can attach Form 9000 to your Form
1040 or 1040-SR or you can mail it separately. For more information, see Form
9000.
All taxpayers now eligible for Identity
Protection PIN. Beginning in 2021, the
IRS Identity Protection PIN (IP PIN)
Opt-In Program has been expanded to
all taxpayers who can properly verify
their identity. An IP PIN helps prevent
your social security number from being
used to file a fraudulent federal income
tax return. You can use the Get An IP
PIN tool on IRS.gov to request an IP
PIN, file Form 15227 if your income is
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$72,000 or less, or make an appointment
to visit a Taxpayer Assistance Center.
Direct deposit now available for returns filed late. You can now receive a
direct deposit of your refund even if you
file your 2021 return after November 30,
2022.
Expanded dependent care assistance.
ARP expanded the child and dependent
care tax credit for 2021 by making it refundable for certain taxpayers and making it larger. For 2021, the dollar limit
on qualifying expenses increases to
$8,000 for one qualifying person and
$16,000 for two or more qualifying persons. The rules for calculating the credit
have also changed; the percentage of
qualifying expenses eligible for the
credit has increased, along with the income limit at which the credit begins
phasing out. Additionally, for taxpayers
who receive dependent care benefits
from their employer, the dollar limit of
the exclusion amount increases for 2021.
For more information, see the Instructions for Form 2441 and Pub. 503.
Child tax credit. Under ARP, the child
tax credit has been enhanced for 2021.
The child tax credit has been extended
to qualifying children under age 18. Depending on modified adjusted gross income, you may receive an enhanced
credit amount of up to $3,600 for a qualifying child under age 6 and up to
$3,000 for a qualifying child over age 5
and under age 18. The enhanced credit
amount begins to phase out where modified adjusted gross income exceeds
$150,000 in the case of a joint return or
surviving spouse, $112,500 in the case
of a head of household, and $75,000 in
all other cases.
If you (or your spouse if filing jointly) lived in the United States for more
than half the year, the child tax credit
will be fully refundable even if you don't
have earned income. If you don't meet
this residency requirement, your child
tax credit will be a combination of a
nonrefundable child tax credit and a refundable additional child tax credit, as
was the case in 2020. The credit for oth-
er dependents has not been enhanced
and is figured as it was in 2020.
Changes to Schedule 8812. Because of
the changes made by ARP, detailed discussion of the child tax credit, and how
to figure your child tax credit and credit
for other dependents, which were previously part of these instructions, has been
moved to the Instructions for Schedule
8812 (Form 1040). If you are claiming
the nonrefundable child tax credit, refundable child tax credit, additional
child tax credit, or credit for other dependents, complete Schedule 8812 and
attach it to your Form 1040 or 1040-SR.
Premium tax credit (PTC). ARP expanded the PTC by eliminating the limitation that a taxpayer's household income may not exceed 400% of the
Federal Poverty Line and generally increases the credit amounts. In addition,
in 2021, if you receive unemployment
compensation, you are generally eligible
to claim the PTC if you meet the other
requirements. For more information, see
Pub. 974 and Form 8962 and its instructions.
Changes to the earned income credit
(EIC). For 2021, the following changes
have been made to the EIC.
• EIC rules for taxpayers without
a qualifying child. Special rules apply
if you are claiming the EIC without a
qualifying child. In these cases, the minimum age has been lowered to age 19
except for specified students who must
be at least age 24 at the end of the year.
However, the applicable minimum age
is lowered further for former foster
youth and qualified homeless youth to
age 18. Additionally, you no longer need
to be under age 65 to claim the EIC
without a qualifying child.
• EIC rules for taxpayers with a
qualifying child. If you are claiming the
EIC with a qualifying child, you should
follow the rules that apply to filers with
a qualifying child or children when determining whether you are eligible to
claim the EIC even if your qualifying
child hasn't been issued a valid SSN on
or before the due date of your return (including extensions). However, when determining the amount of EIC that you
are eligible to claim on your return, you
should follow the rules that apply to taxpayers who do not have a qualifying
child.
• Phaseout amounts increased.
The amount of the credit has been increased and the phaseout income limits
at which you can claim the credit have
been expanded.
• Rules for separated spouses. If
you are married but don't file a joint return, you may qualify to claim the EIC if
you live with a qualifying child for more
than half the year and either live apart
from your spouse for the last 6 months
of 2021 or are legally separated according to your state law under a written separation agreement or a decree of separate maintenance and do not live in the
same household as your spouse at the
end 2021.
• Investment income limit increased. The amount of investment income you can receive and still be eligible to claim the EIC has increased to
$10,000.
• Prior year (2019) earned income.
You can elect to use your 2019 earned
income to figure your 2021 earned income credit if your 2019 earned income
is more than your 2021 earned income.
See the instructions for line 27a.
File Schedule EIC (Form 1040) if you
have a qualifying child. If you have at
least one child who meets the conditions
to be your qualifying child for purposes
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of claiming the EIC, complete and attach Schedule EIC to your Form 1040 or
1040-SR even if that child doesn't have
a valid SSN. For more information, including how to complete Schedule EIC
if your qualifying child doesn't have a
valid SSN, see the line 27a instructions
and Schedule EIC.
Forgiveness of Paycheck Protection
Program (PPP) Loans. The forgiveness of a PPP Loan creates tax-exempt
income, so you don't need to report the
income on Form 1040 or 1040-SR, but
you do need to report certain information related to your PPP Loan. To find
out how to report information related to
your PPP Loan, see Forgiveness of Paycheck Protection Program (PPP) Loans,
under Income, later.
Identity
verification. The
IRS
launched an improved identity verification and sign-in process that enables
more people to securely access and use
IRS online tools and applications. To
provide verification services, the IRS is
using ID.me, a trusted technology provider. The new process is one more step
the IRS is taking to ensure that taxpayer
information is provided only to the person who legally has a right to the data.
Taxpayers using the new mobile-friendly verification procedure can gain entry
to existing IRS online services such as
the Child Tax Credit Update Portal, Online Account, Get Transcript Online, Get
an Identity Protection PIN (IP PIN), and
Online Payment Agreement. Additional
IRS applications will transition to the
new method over the next year. Each
online service will also provide information that will instruct taxpayers on the
steps they need to follow for access to
the service. You can also see
IR-2021-228 for more information.
Free Software Options for Doing Your Taxes
Why have 49 million Americans used Free File?
• Security—Free File uses the latest encryption technology to safeguard your information.
• Flexible Payments—File early; pay by April 18, 2022 (for most people).
• Greater Accuracy—Fewer errors mean faster processing.
• Quick Receipt—Get an acknowledgment that your return was received and accepted.
• Go Green—Reduce the amount of paper used.
• It’s Free—through IRS.gov/FreeFile.
• Faster Refunds—Join the eight in 10 taxpayers who get their refunds faster by using
direct deposit and e-file.
Do Your Taxes for Free
If your adjusted gross income was $73,000 or less in 2021, you can use free tax software to prepare and e-file your tax return.
Earned more? Use Free File Fillable Forms.
Free File. This public–private partnership, between the IRS and tax software providers, makes approximately a dozen
brand-name commercial software products and e-file available for free. Seventy percent of the nation’s taxpayers are eligible.
Just visit IRS.gov/FreeFile for details. Free File combines all the benefits of e-file and easy-to-use software at no cost. Guided
questions will help ensure you get all the tax credits and deductions you are due. It’s fast, safe, and free.
You can review each software provider’s criteria for free usage or use an online tool to find which free software products match
your situation. Some software providers offer state tax return preparation for free.
Free File Fillable Forms. The IRS offers electronic versions of IRS paper forms that can also be e-filed for free. Free File
Fillable Forms is best for people experienced in preparing their own tax returns. There are no income limitations. Free File
Fillable Forms does basic math calculations. It supports only federal tax forms.
Free Tax Help Available Nationwide
Volunteers are available in communities nationwide providing free tax assistance to low-to-moderate income (generally under
$58,000 in adjusted gross income) and elderly taxpayers (age 60 and older). At selected sites, taxpayers can input and
electronically file their own tax return with the assistance of an IRS-certified volunteer.
See How To Get Tax Help near the end of these instructions for additional information or visit IRS.gov (Keyword: VITA) for a
VITA/TCE site near you!
IRS.gov is the gateway to all electronic services offered by the IRS, as well as the spot to download forms at IRS.gov/Forms.
Make your tax payments online—it’s easy.
You can make payments online, by phone, or from a mobile device. Paying online is safe and secure; it
puts you in control of paying your tax bill and gives you peace of mind. You determine the payment
date, and you will receive an immediate confirmation from the IRS. Go to IRS.gov/Payments to see all
your online payment options.
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Filing
Requirements
Do You Have To
File?
Use Chart A, B, or C to see if you must
file a return. U.S. citizens who lived in
or had income from a U.S. possession
should see Pub. 570. Residents of Puerto
Rico can use Tax Topic 901 to see if
they must file.
Even if you do not otherwise
TIP have to file a return, you
should file one to get a refund
of any federal income tax withheld. You
should also file if you are eligible for
any of the following credits.
• Earned income credit.
• Refundable child tax credit or ad-
ditional child tax credit.
• American opportunity credit.
• Credit for federal tax on fuels.
• Premium tax credit.
• Health coverage tax credit.
• Recovery rebate credit.
• Credits for sick and family leave.
• Child and dependent care credit.
See Pub. 501 for details. Also see
Pub. 501 if you do not have to file but
received a Form 1099-B (or substitute
statement).
Requirement to reconcile advance
payments of the premium tax credit.
If you, your spouse with whom you are
filing a joint return, or a dependent was
enrolled in coverage through the Marketplace for 2021 and advance payments
of the premium tax credit were made for
this coverage, you must file a 2021 return and attach Form 8962. You (or
whoever enrolled you) should have received Form 1095-A from the Marketplace with information about your coverage and any advance payments.
You must attach Form 8962 even if
someone else enrolled you, your spouse,
or your dependent. If you are a dependent who is claimed on someone else's
These rules apply to all U.S. citizens, regardless of where they live, and resident aliens.
Have you tried IRS e-file? It's the fastest way to get your refund
and it's free if you are eligible. Visit IRS.gov for details.
2021 return, you do not have to attach
Form 8962.
Exception for certain children under
age 19 or full-time students. If certain
conditions apply, you can elect to include on your return the income of a
child who was under age 19 at the end
of 2021 or was a full-time student under
age 24 at the end of 2021. To do so, use
Form 8814. If you make this election,
your child doesn't have to file a return.
For details, use Tax Topic 553 or see
Form 8814.
A child born on January 1, 1998, is
considered to be age 24 at the end of
2021. Do not use Form 8814 for such a
child.
Resident aliens. These rules also apply
if you were a resident alien. Also, you
may qualify for certain tax treaty benefits. See Pub. 519 for details.
Nonresident aliens and dual-status aliens. These rules also apply if you were
a nonresident alien or a dual-status alien
and both of the following apply.
• You were married to a U.S. citizen
or resident alien at the end of 2021.
• You elected to be taxed as a resident alien.
See Pub. 519 for details.
Specific rules apply to determine if you are a resident alien,
CAUTION nonresident alien, or dual-status alien. Most nonresident aliens and
dual-status aliens have different filing
requirements and may have to file Form
1040-NR. Pub. 519 discusses these requirements and other information to
help aliens comply with U.S. tax law.
!
When and Where
Should You File?
File Form 1040 or 1040-SR by April 18,
2022. The due date is April 18, instead
of April 15, because of the Emancipation Day holiday in the District of Co-
-9-
lumbia – even if you don’t live in the
District of Columbia. If you live in
Maine or Massachusetts, you have until
April 19, 2022, because of the Patriots'
Day holiday in those states. If you file
after this date, you may have to pay interest and penalties. See Interest and
Penalties, later.
If you were serving in, or in support
of, the U.S. Armed Forces in a designated combat zone or contingency operation, you may be able to file later. See
Pub. 3 for details.
If you e-file your return, there is no
need to mail it. However, if you choose
to mail it instead, filing instructions and
addresses are at the end of these instructions.
The chart at the end of these in-
TIP structions provides the current
address for mailing your return. Use these addresses for Forms
1040 or 1040-SR filed in 2022. The address for returns filed after 2022 may be
different. See IRS.gov/Form1040 for any
updates.
What if You Can't File on
Time?
You can get an automatic 6-month extension if, no later than the date your return is due, you file Form 4868. For details, see Form 4868. Instead of filing
Form 4868, you can apply for an automatic extension by making an electronic
payment by the due date of your return.
An automatic 6-month extension to file doesn't extend the
CAUTION time to pay your tax. If you
don’t pay your tax by the original due
date of your return, you will owe interest
on the unpaid tax and may owe penalties. See Form 4868.
!
If you are a U.S. citizen or resident
alien, you may qualify for an automatic
extension of time to file without filing
Form 4868. You qualify if, on the due
date of your return, you meet one of the
following conditions.
• You live outside the United States
and Puerto Rico and your main place of
business or post of duty is outside the
United States and Puerto Rico.
• You are in military or naval service on duty outside the United States and
Puerto Rico.
This extension gives you an extra 2
months to file and pay the tax, but interest will be charged from the original due
date of the return on any unpaid tax.
You must include a statement showing
that you meet the requirements. If you
are still unable to file your return by the
end of the 2-month period, you can get
an additional 4 months if, no later than
June 15, 2022, you file Form 4868. This
4-month extension of time to file doesn't
extend the time to pay your tax. See
Form 4868.
Private Delivery Services
If you choose to mail your return, you
can use certain private delivery services
designated by the IRS to meet the “timely mailing treated as timely filing/
paying” rule for tax returns and payments. These private delivery services
include only the following.
• FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International
Next Flight Out, FedEx International
Priority, FedEx International First, and
FedEx International Economy.
• DHL Express 9:00, DHL Express
10:30, DHL Express 12:00, DHL Ex-
press Worldwide, DHL Express Envelope, DHL Import Express 10:30, DHL
Import Express 12:00, and DHL Import
Express Worldwide.
• UPS Next Day Air Early A.M.,
UPS Next Day Air, UPS Next Day Air
Saver, UPS 2nd Day Air, UPS 2nd Day
Air A.M., UPS Worldwide Express
Plus, and UPS Worldwide Express.
To check for any updates to the list of
designated private delivery services, go
to IRS.gov/PDS. For the IRS mailing address to use if you’re using a private delivery service, go to IRS.gov/
PDSStreetAddresses.
The private delivery service can tell
you how to get written proof of the mailing date.
Chart A—For Most People
IF your filing status is . . .
AND at the end of 2021
you were* . . .
THEN file a return if your gross
income** was at least . . .
Single
under 65
65 or older
$12,550
14,250
Married filing jointly***
under 65 (both spouses)
65 or older (one spouse)
65 or older (both spouses)
$25,100
26,450
27,800
Married filing separately
any age
Head of household
under 65
65 or older
$18,800
20,500
Qualifying widow(er)
under 65
65 or older
$25,100
26,450
$5
*If you were born on January 1, 1957, you are considered to be age 65 at the end of 2021. (If your spouse died in 2021 or
if you are preparing a return for someone who died in 2021, see Pub. 501.)
**Gross income means all income you received in the form of money, goods, property, and services that isn't exempt from
tax, including any income from sources outside the United States or from the sale of your main home (even if you can
exclude part or all of it). Don’t include any social security benefits unless (a) you are married filing a separate return and
you lived with your spouse at any time in 2021, or (b) one-half of your social security benefits plus your other gross
income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the
instructions for lines 6a and 6b to figure the taxable part of social security benefits you must include in gross income.
Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a business means,
for example, the amount on Schedule C, line 7, or Schedule F, line 9. But, in figuring gross income, don’t reduce your
income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9.
***If you didn't live with your spouse at the end of 2021 (or on the date your spouse died) and your gross income was at
least $5, you must file a return regardless of your age.
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Chart B—For Children and Other Dependents (See Who Qualifies as Your Dependent, later.)
If your parent (or someone else) can claim you as a dependent, use this chart to see if you must file a return.
In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. It also includes
unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust.
Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Gross income is the
total of your unearned and earned income.
Single dependents. Were you either age 65 or older or blind?
No. You must file a return if any of the following apply.
• Your unearned income was over $1,100.
• Your earned income was over $12,550.
• Your gross income was more than the larger of—
• $1,100, or
• Your earned income (up to $12,200) plus $350.
Yes. You must file a return if any of the following apply.
• Your unearned income was over $2,800 ($4,500 if 65 or older and blind).
• Your earned income was over $14,250 ($15,950 if 65 or older and blind).
• Your gross income was more than the larger of—
• $2,800 ($4,500 if 65 or older and blind), or
• Your earned income (up to $12,200) plus $2,050 ($3,750 if 65 or older and blind).
Married dependents. Were you either age 65 or older or blind?
No. You must file a return if any of the following apply.
• Your unearned income was over $1,100.
• Your earned income was over $12,550.
• Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
• Your gross income was more than the larger of—
• $1,100, or
• Your earned income (up to $12,200) plus $350.
Yes. You must file a return if any of the following apply.
• Your unearned income was over $2,450 ($3,800 if 65 or older and blind).
• Your earned income was over $13,900 ($15,250 if 65 or older and blind).
• Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
• Your gross income was more than the larger of—
• $2,450 ($3,800 if 65 or older and blind), or
• Your earned income (up to $12,200) plus $1,700 ($3,050 if 65 or older and blind).
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Chart C—Other Situations When You Must File
You must file a return if any of the seven conditions below apply for 2021.
1.
You owe any special taxes, including any of the following.
a. Alternative minimum tax.
b. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. But
if you are filing a return only because you owe this tax, you can file Form 5329 by itself.
c. Household employment taxes. But if you are filing a return only because you owe this tax, you can file Schedule H by
itself.
d. Social security and Medicare tax on tips you didn't report to your employer or on wages you received from an employer
who didn't withhold these taxes.
e. Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or
on group-term life insurance and additional taxes on health savings accounts. See the instructions for Schedule 2, line 8.
f. Recapture taxes. See the instructions for line 16 and Schedule 2, lines 10 through 18.
2.
You (or your spouse if filing jointly) received health savings account, Archer MSA, or Medicare Advantage MSA
distributions.
3.
You had net earnings from self-employment of at least $400.
4.
You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from
employer social security and Medicare taxes.
5.
Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage
through the Marketplace. You or whoever enrolled you should have received Form(s) 1095-A showing the amount of the
advance payments.
6.
Advance payments of the health coverage tax credit were made for you, your spouse, or a dependent. You or whoever
enrolled you should have received Form(s) 1099-H showing the amount of the advance payments.
7.
You are required to include amounts in income under section 965 or you have a net tax liability under section 965 that you
are paying in installments under section 965(h) or deferred by making an election under section 965(i).
Need more information or forms? Visit IRS.gov.
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Line
Instructions
for
Forms 1040
and 1040-SR
!
Also see the instructions for Schedule 1 through Schedule 3 that follow the
Form 1040 and 1040-SR instructions.
CAUTION
Free File makes available free brand-name software and free e-file. Visit IRS.gov/
FreeFile for details and to see if you are eligible.
What form to file. Everyone can file Form 1040. Form 1040-SR is available to you if
you were born before January 2, 1957.
Fiscal year filers. If you are a fiscal year filer using a tax year other than January 1
through December 31, 2021, write “Tax Year” and the beginning and ending months
of your fiscal year in the top margin of page 1 of Form 1040 or 1040-SR.
Write-in information. If you need to write a word, code, and/or dollar amount on
Form 1040 or 1040-SR to explain an item of income or deduction, but don't have
enough space to enter the word, code, and/or dollar amount, you can put an asterisk
next to the applicable line number and put a footnote at the bottom of page 2 of your
tax return indicating the line number and the word, code, and/or dollar amount you
need to enter.
For example, if you received wages as a household employee and didn't receive a
W-2 because you were paid only $2,000, the instructions for line 1 state that you must
enter “HSH” and the amount of the wages next to line 1. You may instead put an asterisk next to line 1 and in the white space at the bottom of page 2 of Form 1040 or
1040-SR, enter “*Line 1: HSH $2,000.”
Section references are to the Internal Revenue Code.
Filing Status
Check only the filing status that applies
to you. The ones that will usually give
you the lowest tax are listed last.
• Married filing separately.
• Single.
• Head of household.
• Married filing jointly.
• Qualifying widow(er).
For information about marital status, see
Pub. 501.
More than one filing status can
TIP apply to you. You can choose
the one that will give you the
lowest tax.
Single
You can check the “Single” box at the
top of Form 1040 or 1040-SR if any of
the following was true on December 31,
2021.
• You were never married.
• You were legally separated according to your state law under a decree of
divorce or separate maintenance. But if,
at the end of 2021, your divorce wasn't
final (an interlocutory decree), you are
considered married and can't check the
box.
• You were widowed before January
1, 2021, and didn't remarry before the
end of 2021. But if you have a child,
you may be able to use the qualifying
widow(er) filing status. See the instructions for Qualifying Widow(er), later.
Married Filing Jointly
You can check the “Married filing jointly” box at the top of Form 1040 or
1040-SR if any of the following apply.
• You were married at the end of
2021, even if you didn't live with your
spouse at the end of 2021.
• Your spouse died in 2021 and you
didn't remarry in 2021.
• You were married at the end of
2021 and your spouse died in 2022 before filing a 2021 return.
A married couple filing jointly report
their combined income and deduct their
combined allowable expenses on one return. They can file a joint return even if
only one had income or if they didn't
live together all year. However, both
persons must sign the return. Once you
file a joint return, you can't choose to
file separate returns for that year after
the due date of the return.
Joint and several tax liability. If you
file a joint return, both you and your
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spouse are generally responsible for the
tax and interest or penalties due on the
return. This means that if one spouse
doesn't pay the tax due, the other may
have to. Or, if one spouse doesn't report
the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. You may want to file
separately if:
• You believe your spouse isn't reporting all of his or her income, or
• You don’t want to be responsible
for any taxes due if your spouse doesn't
have enough tax withheld or doesn't pay
enough estimated tax.
See the instructions for Married Filing
Separately. Also see Innocent Spouse
Relief under General Information, later.
Nonresident aliens and dual-status aliens. Generally, a married couple can't
file a joint return if either spouse is a
nonresident alien at any time during the
year. However, if you were a nonresident alien or a dual-status alien and were
married to a U.S. citizen or resident alien at the end of 2021, you can elect to
be treated as a resident alien and file a
joint return. See Pub. 519 for details.
Need more information or forms? Visit IRS.gov.
Married Filing Separately
Check the “Married filing separately”
box at the top of Form 1040 or 1040-SR
if you are married and file a separate return. Enter your spouse’s name in the
entry space below the filing status
checkboxes. Be sure to enter your spouse’s SSN or Individual Taxpayer Identification Number (ITIN) in the space for
spouse’s SSN on Form 1040 or
1040-SR. If your spouse doesn’t have
and isn’t required to have an SSN or
ITIN, enter “NRA” in the entry space
below the filing status checkboxes.
For electronic filing, enter the spouse's name or “NRA” if the spouse
doesn’t have an SSN or ITIN in the entry space below the filing status checkboxes.
If you are married and file a separate
return, you generally report only your
own income, deductions, and credits.
Generally, you are responsible only for
the tax on your own income. Different
rules apply to people in community
property states; see Pub. 555.
However, you will usually pay more
tax than if you use another filing status
for which you qualify. Also, if you file a
separate return, you can't take the student loan interest deduction or the education credits, and you will only be able
to take the earned income credit in very
limited circumstances. You also can't
take the standard deduction if your
spouse itemizes deductions.
You may be able to file as head
TIP of household if you had a child
living with you and you lived
apart from your spouse during the last 6
months of 2021. See Married persons
who live apart, later.
Head of Household
You can check the “Head of household”
box at the top of Form 1040 or 1040-SR
if you are unmarried and provide a home
for certain other persons. You are considered unmarried for this purpose if any
of the following applies.
• You were legally separated according to your state law under a decree of
divorce or separate maintenance at the
end of 2021. But if, at the end of 2021,
your divorce wasn't final (an interlocutory decree), you are considered married.
• You are married but lived apart
from your spouse for the last 6 months
of 2021 and you meet the other rules under Married persons who live apart, later.
• You are married to a nonresident
alien at any time during the year and the
election to treat the alien spouse as a resident alien is not made.
Check the “Head of household” box only if you are unmarried (or considered
unmarried) and either Test 1 or Test 2
applies.
Test 1. You paid over half the cost of
keeping up a home that was the main
home for all of 2021 of your parent
whom you can claim as a dependent, except under a multiple support agreement
(see Who Qualifies as Your Dependent,
later). Your parent didn't have to live
with you.
Test 2. You paid over half the cost of
keeping up a home in which you lived
and in which one of the following also
lived for more than half of the year (if
half or less, see Exception to time lived
with you, later).
1. Any person whom you can claim
as a dependent. But don’t include:
a. Your child whom you claim as
your dependent because of the rule for
Children of divorced or separated parents under Who Qualifies as Your Dependent, later;
b. Any person who is your dependent only because he or she lived with
you for all of 2021; or
c. Any person you claimed as a dependent under a multiple support agreement. See Who Qualifies as Your Dependent, later.
2. Your unmarried qualifying child
who isn't your dependent.
3. Your married qualifying child
who isn't your dependent only because
you can be claimed as a dependent on
someone else's 2021 return.
4. Your qualifying child who, even
though you are the custodial parent, isn't
your dependent because of the rule for
Children of divorced or separated parents under Who Qualifies as Your Dependent, later.
If the child isn't claimed as your dependent, enter the child's name in the entry space below the filing status check-
Need more information or forms? Visit IRS.gov.
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boxes. If you don’t enter the name, it
will take us longer to process your return.
Qualifying child. To find out if someone is your qualifying child, see Step 1
under Who Qualifies as Your Dependent, later.
Dependent. To find out if someone is
your dependent, see Who Qualifies as
Your Dependent, later.
The dependents you claim are
TIP those you list by name and SSN
in the Dependents section on
Form 1040 or 1040-SR.
Exception to time lived with you.
Temporary absences by you or the other
person for special circumstances, such
as school, vacation, business, medical
care, military service, or detention in a
juvenile facility, count as time lived in
the home. Also see Kidnapped child, later, under Who Qualifies as Your Dependent, if applicable.
If the person for whom you kept up a
home was born or died in 2021, you still
may be able to file as head of household.
If the person is your qualifying child, the
child must have lived with you for more
than half the part of the year he or she
was alive. If the person is anyone else,
see Pub. 501. Similarly, if you adopted
the person for whom you kept up a
home in 2021, the person was lawfully
placed with you for legal adoption by
you in 2021, or the person was an eligible foster child placed with you during
2021, the person is considered to have
lived with you for more than half of
2021 if your main home was this person’s main home for more than half the
time since he or she was adopted or
placed with you in 2021.
Keeping up a home. To find out what
is included in the cost of keeping up a
home, see Pub. 501. Similarly, if you
adopted the person for whom you kept
up a home in 2021, the person was lawfully placed with you for legal adoption
by you in 2021, or the person was an eligible foster child placed with you during
2021, the person is considered to have
lived with you for more than half of
2021 if your main home was this person's main home for more than half the
time since he or she was adopted or
placed with you in 2021.
Married persons who live apart. Even
if you weren’t divorced or legally separated at the end of 2021, you are considered unmarried if all of the following
apply.
• You lived apart from your spouse
for the last 6 months of 2021. Temporary absences for special circumstances,
such as for business, medical care,
school, or military service, count as time
lived in the home.
• You file a separate return from
your spouse.
• You paid over half the cost of
keeping up your home for 2021.
• Your home was the main home of
your child, stepchild, or foster child for
more than half of 2021 (if half or less,
see Exception to time lived with you,
earlier).
• You can claim this child as your
dependent or could claim the child except that the child's other parent can
claim him or her under the rule for Children of divorced or separated parents
under Who Qualifies as Your Dependent, later.
Adopted child. An adopted child is
always treated as your own child. An
adopted child includes a child lawfully
placed with you for legal adoption.
Foster child. A foster child is any
child placed with you by an authorized
placement agency or by judgment, decree, or other order of any court of competent jurisdiction.
Qualifying Widow(er)
You can check the “Qualifying widow(er)” box at the top of Form 1040 or
1040-SR and use joint return tax rates
for 2021 if all of the following apply.
1. Your spouse died in 2019 or 2020
and you didn't remarry before the end of
2021.
2. You have a child or stepchild (not
a foster child) whom you can claim as a
dependent or could claim as a dependent
except that, for 2021:
a. The child had gross income of
$4,300 or more,
b. The child filed a joint return, or
c. You could be claimed as a dependent on someone else’s return.
If the child isn’t claimed as your dependent, enter the child’s name in the
entry space below the filing status
checkboxes. If you don’t enter the name,
it will take us longer to process your return.
3. This child lived in your home for
all of 2021. If the child didn't live with
you for the required time, see Exception
to time lived with you, later.
4. You paid over half the cost of
keeping up your home.
5. You could have filed a joint return with your spouse the year he or she
died, even if you didn't actually do so.
If your spouse died in 2021, you can't
file as qualifying widow(er). Instead, see
the instructions for Married Filing
Jointly, earlier.
Adopted child. An adopted child is always treated as your own child. An
adopted child includes a child lawfully
placed with you for legal adoption.
Dependent. To find out if someone is
your dependent, see Who Qualifies as
Your Dependent, later.
The dependents you claim are
TIP those you list by name and SSN
in the Dependents section on
Form 1040 or 1040-SR.
Exception to time lived with you.
Temporary absences by you or the child
for special circumstances, such as
school, vacation, business, medical care,
military service, or detention in a juvenile facility, count as time lived in the
home. Also see Kidnapped child, later,
under Who Qualifies as Your Dependent, if applicable.
A child is considered to have lived
with you for all of 2021 if the child was
born or died in 2021 and your home was
the child's home for the entire time he or
she was alive. Similarly, if you adopted
the child in 2021, the child was lawfully
placed with you for legal adoption by
you in 2021, or the child was an eligible
foster child placed with you during
2021, the child is considered to have
lived with you for all of 2021 if your
main home was this child's main home
for the entire time since he or she was
adopted or placed with you in 2021.
Keeping up a home. To find out what
is included in the cost of keeping up a
home, see Pub. 501.
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Name and Address
Print or type the information in the
spaces provided. If you are married filing a separate return, enter your spouse's
name in the entry space below the filing
status checkboxes instead of below your
name.
If you filed a joint return for
TIP 2020 and you are filing a joint
return for 2021 with the same
spouse, be sure to enter your names and
SSNs in the same order as on your 2020
return.
Name Change
If you changed your name because of
marriage, divorce, etc., be sure to report
the change to the Social Security Administration (SSA) before filing your return. This prevents delays in processing
your return and issuing refunds. It also
safeguards your future social security
benefits.
Address Change
If you plan to move after filing your return, use Form 8822 to notify the IRS of
your new address.
P.O. Box
Enter your box number only if your post
office doesn't deliver mail to your home.
Foreign Address
If you have a foreign address, enter the
city name on the appropriate line. Don’t
enter any other information on that line,
but also complete the spaces below that
line. Don’t abbreviate the country name.
Follow the country’s practice for entering the postal code and the name of the
province, county, or state.
Death of a Taxpayer
See Death of a Taxpayer under General
Information, later.
Social Security
Number (SSN)
An incorrect or missing SSN can increase your tax, reduce your refund, or
delay your refund. To apply for an SSN,
fill in Form SS-5 and return it, along
with the appropriate evidence docu-
Need more information or forms? Visit IRS.gov.
ments, to the Social Security Administration (SSA). You can get Form SS-5
online at SSA.gov/forms/ss-5.pdf, from
your local SSA office, or by calling the
SSA at 800-772-1213. It usually takes
about 2 weeks to get an SSN once the
SSA has all the evidence and information it needs.
Check that both the name and SSN
on your Forms 1040 or 1040-SR, W-2,
and 1099 agree with your social security
card. If they don’t, certain deductions
and credits on Form 1040 or 1040-SR
may be reduced or disallowed and you
may not receive credit for your social
security earnings. If your Form W-2
shows an incorrect SSN or name, notify
your employer or the form-issuing agent
as soon as possible to make sure your
earnings are credited to your social security record. If the name or SSN on
your social security card is incorrect,
call the SSA.
Once you are issued an SSN, use it to
file your tax return. Use your SSN to file
your tax return even if your SSN does
not authorize employment or if you have
been issued an SSN that authorizes employment and you lose your employment authorization. An ITIN will not be
issued to you once you have been issued
an SSN. If you received your SSN after
previously using an ITIN, stop using
your ITIN. Use your SSN instead.
IRS Individual Taxpayer
Identification Numbers
(ITINs) for Aliens
If you are a nonresident or resident alien
and you don’t have and aren’t eligible to
get an SSN, you must apply for an ITIN.
It takes about 7 weeks to get an ITIN.
If you already have an ITIN, enter it
wherever your SSN is requested on your
tax return.
Some ITINs must be renewed. If you
haven't used your ITIN on a federal tax
return at least once for tax years 2018,
2019, or 2020, it expired at the end of
2021 and must be renewed if you need
to file a federal tax return in 2022. You
don't need to renew your ITIN if you
don't need to file a federal tax return.
You can find more information at
IRS.gov/ITIN.
ITINs assigned before 2013
TIP have expired and must be renewed if you need to file a tax
return in 2022. If you previously submitted a renewal application and it was approved, you do not need to renew again
unless you haven't used your ITIN on a
federal tax return at least once for tax
years 2018, 2019, or 2020.
An ITIN is for tax use only. It doesn't
entitle you to social security benefits or
change your employment or immigration status under U.S. law.
For more information on ITINs, including application, expiration, and renewal, see Form W-7 and its instructions.
If you receive an SSN after previously using an ITIN, stop using your ITIN.
Use your SSN instead. Visit a local IRS
office or write a letter to the IRS explaining that you now have an SSN and
want all your tax records combined under your SSN. Details about what to include with the letter and where to mail it
are at IRS.gov/ITIN.
Nonresident Alien Spouse
If your spouse is a nonresident alien, he
or she must have either an SSN or an
ITIN if:
• You file a joint return, or
• Your spouse is filing a separate return.
Standard Deduction
If you are filing Form 1040-SR,
TIP you can find a Standard Deduction Chart on the last page
of that form that can calculate the
amount of your standard deduction in
most situations.
turn or you were a dual-status alien”
box. If you were a dual-status alien and
you file a joint return with your spouse
who was a U.S. citizen or resident alien
at the end of 2021 and you and your
spouse agree to be taxed on your combined worldwide income, don’t check
the box.
Age/Blindness
If you or your spouse (if you are married
and filing a joint return) were born before January 2, 1957, or were blind at
the end of 2021, check the appropriate
boxes on the line labeled “Age/Blindness.”
Don’t check any boxes for your
spouse if your filing status is head of
household.
Death of spouse in 2021. If your
spouse was born before January 2, 1957,
but died in 2021 before reaching age 65,
don’t check the box that says “Spouse
was born before January 2, 1957.”
A person is considered to reach age
65 on the day before his or her 65th
birthday.
Example. Your spouse was born on
February 14, 1956, and died on February
13, 2021. Your spouse is considered age
65 at the time of death. Check the appropriate box for your spouse. However, if
your spouse died on February 12, 2021,
your spouse isn't considered age 65.
Don’t check the box.
Death of taxpayer in 2021. If you are
preparing a return for someone who died
in 2021, see Pub. 501 before completing
the standard deduction information.
Blindness
Single and Married Filing
Jointly
If you weren’t totally blind as of December 31, 2021, you must get a statement certified by your eye doctor (ophthalmologist or optometrist) that:
• You can't see better than 20/200 in
your better eye with glasses or contact
lenses, or
• Your field of vision is 20 degrees
or less.
If you or your spouse (if you are married
and filing a joint return) can be claimed
as a dependent on someone else’s return,
check the appropriate box in the Standard Deduction section.
If your eye condition isn't likely to
improve beyond the conditions listed
above, you can get a statement certified
by your eye doctor (ophthalmologist or
optometrist) to this effect instead.
If you were a dual-status alien, check
the “Spouse itemizes on a separate re-
You must keep the statement for your
records.
Don’t file the Standard Deduction
Chart with your return.
Need more information or forms? Visit IRS.gov.
-16-
Beginning in 2021, if you receive a
notice or letter but you would prefer to
have it in Braille or large print, you can
use Form 9000, Alternative Media Preference, to request notices in an alternative format including Braille, large print,
audio, or electronic. You can attach
Form 9000 to your return or mail it separately.
• You can download, or view online,
tax forms and publications in a variety
of formats including text-only, Braille
ready files, browser-friendly HTML
(other than tax forms), accessible PDF,
and large print.
Married Filing Separately
If your filing status is married filing separately and your spouse itemizes deductions on his or her return, check the
“Spouse itemizes on a separate return or
you were a dual-status alien” box.
If your filing status is married filing
separately and your spouse was born before January 2, 1957, or was blind at the
end of 2021, you can check the appropriate box(es) on the line labeled “Age/
Blindness” if your spouse had no income, isn't filing a return, and can't be
claimed as a dependent on another person's return.
Presidential Election
Campaign Fund
This fund helps pay for Presidential
election campaigns. The fund reduces
candidates' dependence on large contributions from individuals and groups and
places candidates on an equal financial
footing in the general election. The fund
also helps pay for pediatric medical research. If you want $3 to go to this fund,
check the box. If you are filing a joint
return, your spouse can also have $3 go
to the fund. If you check a box, your tax
or refund won't change.
Virtual Currency
Virtual currency is a digital representation of value, other than a representation
of the U.S. dollar or a foreign currency
(“real currency”), that functions as a unit
of account, a store of value, or a medium
of exchange. Some virtual currencies are
convertible, which means that they have
an equivalent value in real currency or
act as a substitute for real currency. The
IRS uses the term “virtual currency” to
describe the various types of convertible
virtual currency that are used as a medium of exchange, such as digital currency
and cryptocurrency. Regardless of the
label applied, if a particular asset has the
characteristics of virtual currency, it will
be treated as virtual currency for Federal
income tax purposes.
If, in 2021, you engaged in any transaction involving virtual currency, check
the “Yes” box next to the question on
virtual currency on page 1 of Form 1040
or 1040-SR. A transaction involving virtual currency includes, but is not limited
to:
• The receipt of virtual currency as
payment for goods or services provided;
• The receipt or transfer of virtual
currency for free (without providing any
consideration) that does not qualify as a
bona fide gift;
• The receipt of new virtual currency
as a result of mining and staking activities;
• The receipt of virtual currency as a
result of a hard fork;
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• An exchange of virtual currency
for property, goods, or services;
• An exchange/trade of virtual currency for another virtual currency;
• A sale of virtual currency; and
• Any other disposition of a financial interest in virtual currency.
A transaction involving virtual currency does not include the holding of
virtual currency in a wallet or account,
or the transfer of virtual currency from
one wallet or account you own or control to another that you own or control.
If your only transactions involving virtual currency during 2021 were purchases
of virtual currency for real currency, including the use of real currency electronic platforms such as PayPal and
Venmo, you are not required to check
the “Yes” box next to the virtual currency question. You must not leave the
field blank even if you are not required
to answer “Yes”. If you disposed of any
virtual currency that was held as a capital asset through a sale, exchange, or
transfer, check “Yes” and use Form
8949 to figure your capital gain or loss
and report it on Schedule D (Form
1040).
If you received any virtual currency
as compensation for services or disposed
of any virtual currency that you held for
sale to customers in a trade or business,
you must report the income as you
would report other income of the same
type (for example, W-2 wages on Form
1040 or 1040-SR, line 1, or inventory or
services from Schedule C on Schedule
1).
For more information, go to IRS.gov/
virtualcurrencyfaqs.
Need more information or forms? Visit IRS.gov.
Who Qualifies as Your
Dependent
Step 1
Dependents, Qualifying Child for Child Tax
Credit, and Credit for Other Dependents
A qualifying child is a child who is your...
Follow the steps below to find out if a person qualifies as your
dependent and to find out if your dependent qualifies you to
take the child tax credit or the credit for other dependents. If
you have more than four dependents, check the box under Dependents on page 1 of Form 1040 or 1040-SR and include a
statement showing the information required in columns (1)
through (4).
TIP
Do You Have a Qualifying
Child?
Son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half
brother, half sister, or a descendant of any of them (for example, your grandchild,
niece, or nephew)
AND
was ...
The dependents you claim are those you list by name
and SSN in the Dependents section on Form 1040 or
1040-SR.
Under age 19 at the end of 2021 and younger than you
(or your spouse if filing jointly)
or
Before you begin. See the definition of Social security number, later. If you want to claim the child tax credit or the credit
for other dependents, you (and your spouse if filing jointly)
must have an SSN or ITIN issued on or before the due date of
your 2021 return (including extensions). If an ITIN is applied
for on or before the due date of a 2021 return (including extensions) and the IRS issues an ITIN as result of the application,
the IRS will consider the ITIN as issued on or before the due
date of the return.
Under age 24 at the end of 2021, a student (defined later), and younger than you
(or your spouse if filing jointly)
or
Any age and permanently and totally disabled (defined later)
AND
Who didn't provide over half of his or her own support for 2021 (see Pub. 501)
AND
Who isn't filing a joint return for 2021
or is filing a joint return for 2021 only to claim a refund of withheld income tax or
estimated tax paid (see Pub. 501 for details and examples)
AND
Who lived with you for more than half of 2021. If the child didn't live with you
for the required time, see Exception to time lived with you, later.
!
If the child meets the conditions to be a qualifying child of any
other person (other than your spouse if filing jointly) for 2021, see
Qualifying child of more than one person, later.
CAUTION
1. Do you have a child who meets the conditions to be your
qualifying child?
Yes. Go to Step 2.
No. Go to Step 4.
Step 2
Is Your Qualifying Child Your
Dependent?
1. Was the child a U.S. citizen, U.S. national, U.S. resident
alien, or a resident of Canada or Mexico? (See Pub. 519 for
Need more information or forms? Visit IRS.gov.
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the definition of a U.S. national or U.S. resident alien. If the
child was adopted, see Exception to citizen test, later.)
Yes. Continue
No. STOP
䊲
2. Was the child married?
Yes. See Married
person, later.
You can't claim this child
as a dependent.
No. Continue
䊲
3. Could you, or your spouse if filing jointly, be claimed as a
dependent on someone else's 2021 tax return? See Steps 1,
2, and 4.
No. You can claim this
Yes. STOP
child as a dependent.
You can't claim any
Complete columns (1)
dependents. Complete
through (3) of the
the rest of Form 1040 or
Dependents section on
1040-SR and any
page 1 of Form 1040 or
applicable schedules.
1040-SR for this child.
Then, go to Step 3.
4. Did this child have an SSN valid for employment issued
before the due date of your 2021 return (including
extensions)? (See Social Security Number, later.)
Yes. You can claim the
No. STOP
child tax credit for this
You can claim the credit
person. Check the
for other dependents for
“Child tax credit” box
this child. Check the
in column (4) of the
“Credit for other
Dependents section on
dependents” box in
page 1 of Form 1040 or
column (4) of the
1040-SR for this
Dependents section on
person.
page 1 of Form 1040 or
1040-SR for this person.
Step 4
Is Your Qualifying Relative
Your Dependent?
A qualifying relative is a person who is your...
Son, daughter, stepchild, foster child, or a descendant of any of them (for
example, your grandchild)
or
Step 3
Does Your Qualifying Child
Qualify You for the Child Tax
Credit or Credit for Other
Dependents?
Brother, sister, half brother, half sister, or a son or daughter of any of them (for
example, your niece or nephew)
or
Father, mother, or an ancestor or sibling of either of them (for example, your
grandmother, grandfather, aunt, or uncle)
or
1. Did the child have an SSN, ITIN, or adoption taxpayer
identification number (ATIN) issued on or before the due
date of your return (including extensions)? (Answer “Yes”
if you are applying for an ITIN or ATIN for the child on or
before the due date of your return (including extensions).)
Yes. Continue
No. STOP
䊲
Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law,
father-in-law, mother-in-law, brother-in-law, or sister-in-law
or
You can’t claim the child
tax credit or the credit for
other dependents for this
child.
2. Was the child a U.S. citizen, U.S. national, or U.S. resident
alien? (See Pub. 519 for the definition of a U.S. national or
U.S. resident alien. If the child was adopted, see Exception
to citizen test, later.)
Yes. Continue
No. STOP
䊲
Any other person (other than your spouse) who lived with you all year as a
member of your household if your relationship didn't violate local law. If the
person didn't live with you for the required time, see Exception to time lived with
you, later.
AND
Who wasn't a qualifying child (see Step 1) of any taxpayer for 2021. For this
purpose, a person isn't a taxpayer if he or she isn't required to file a U.S. income
tax return and either doesn't file such a return or files only to get a refund of
withheld income tax or estimated tax paid. See Pub. 501 for details and examples.
You can’t claim the child
tax credit or the credit for
other dependents for this
child.
3. Was the child under age 18 at the end of 2021?
Yes. Continue
No. You can claim the
䊲
credit for other
dependents for this child.
Check the “Credit for
other dependents” box in
column (4) of the
Dependents section on
page 1 of Form 1040 or
1040-SR for this person.
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AND
Who had gross income of less than $4,300 in 2021. If the person was permanently
and totally disabled, see Exception to gross income test, later.
AND
For whom you provided over half of his or her support in 2021. But see Children
of divorced or separated parents, Multiple support agreements, and Kidnapped
child, later.
Need more information or forms? Visit IRS.gov.
relative was adopted, see Exception to citizenship test,
later.)
Yes. You can claim
No. STOP
the credit for other
You can’t claim the
dependents for this
credit for other
dependent. Check the
dependents for this
“Credit for other
qualifying relative.
dependents” box in
column (4) of the
Dependents section on
page 1 of Form 1040 or
1040-SR for this
person.
1. Does any person meet the conditions to be your qualifying
relative?
Yes. Continue
No. STOP
䊲
2. Was your qualifying relative a U.S. citizen, U.S. national,
U.S. resident alien, or a resident of Canada or Mexico? (See
Pub. 519 for the definition of a U.S. national or U.S.
resident alien. If your qualifying relative was adopted, see
Exception to citizen test, later.)
Yes. Continue
No. STOP
䊲
Definitions and Special Rules
You can't claim this
person as a dependent.
Adopted child. An adopted child is always treated as your own
child. An adopted child includes a child lawfully placed with
you for legal adoption.
3. Was your qualifying relative married?
Yes. See Married
No. Continue
䊲
person, later.
Adoption taxpayer identification numbers (ATINs). If you
have a dependent who was placed with you for legal adoption
and you don’t know his or her SSN, you must get an ATIN for
the dependent from the IRS. See Form W-7A for details. If the
dependent isn't a U.S. citizen or resident alien, apply for an
ITIN instead using Form W-7.
4. Could you, or your spouse if filing jointly, be claimed as a
dependent on someone else's 2021 tax return? See Steps 1,
2, and 4.
No. You can claim this
Yes. STOP
person as a dependent.
You can't claim any
Complete columns (1)
dependents. Complete
through (3) of the
the rest of Form 1040 or
Dependents section on
1040-SR and any
page 1 of Form 1040 or
applicable schedules.
1040-SR. Then, go to
Step 5.
Step 5
Does Your Qualifying Relative
Qualify You for the Credit for
Other Dependents?
1. Did your qualifying relative have an SSN, ITIN, or ATIN
issued on or before the due date of your 2021 return
(including extensions)? (Answer “Yes” if you are applying
for an ITIN or ATIN for the qualifying relative on or before
the return due date (including extensions).)
Yes. Continue
No. STOP
䊲
You can’t claim the
credit for other
dependents for this
qualifying relative.
2. Was your qualifying relative a U.S. citizen, U.S. national, or
U.S. resident alien? (See Pub. 519 for the definition of a
U.S. national or a U.S. resident alien. If your qualifying
Children of divorced or separated parents. A child will be
treated as the qualifying child or qualifying relative of his or her
noncustodial parent (defined later) if all of the following conditions apply.
1. The parents are divorced, legally separated, separated under a written separation agreement, or lived apart at all times
during the last 6 months of 2021 (whether or not they are or
were married).
2. The child received over half of his or her support for
2021 from the parents (and the rules on Multiple support agreements, later, don’t apply). Support of a child received from a parent's spouse is treated as provided by the parent.
3. The child is in custody of one or both of the parents for
more than half of 2021.
4. Either of the following applies.
a. The custodial parent signs Form 8332 or a substantially
similar statement that he or she won't claim the child as a dependent for 2021, and the noncustodial parent includes a copy
of the form or statement with his or her return. If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to include certain pages from the decree or agreement instead of Form 8332.
See Post-1984 and pre-2009 decree or agreement and
Post-2008 decree or agreement.
b. A pre-1985 decree of divorce or separate maintenance or
written separation agreement between the parents provides that
the noncustodial parent can claim the child as a dependent, and
the noncustodial parent provides at least $600 for support of the
child during 2021.
If conditions (1) through (4) apply, only the noncustodial parent can claim the child for purposes of the child tax credits and
credit for other dependents (lines 19 and 28). However, this
Need more information or forms? Visit IRS.gov.
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doesn't allow the noncustodial parent to claim head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, the earned income credit, or the health coverage tax credit. The custodial parent or another taxpayer, if eligible, can claim the child for the
earned income credit and these other benefits. See Pub. 501 for
details.
Custodial and noncustodial parents. The custodial parent is
the parent with whom the child lived for the greater number of
nights in 2021. The noncustodial parent is the other parent. If
the child was with each parent for an equal number of nights,
the custodial parent is the parent with the higher adjusted gross
income. See Pub. 501 for an exception for a parent who works
at night, rules for a child who is emancipated under state law,
and other details.
Post-1984 and pre-2009 decree or agreement. The decree
or agreement must state all three of the following.
1. The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support.
2. The other parent won't claim the child as a dependent.
3. The years for which the claim is released.
The noncustodial parent must include all of the following pages from the decree or agreement.
• Cover page (include the other parent's SSN on that page).
• The pages that include all the information identified in (1)
through (3) above.
• Signature page with the other parent's signature and date
of agreement.
!
You must include the required information even if you
filed it with your return in an earlier year.
CAUTION
Post-2008 decree or agreement. If the divorce decree or
separation agreement went into effect after 2008, the noncustodial parent can't include pages from the decree or agreement instead of Form 8332. The custodial parent must sign either Form
8332 or a substantially similar statement the only purpose of
which is to release the custodial parent's claim to certain tax
benefits for a child, and the noncustodial parent must include a
copy with his or her return. The form or statement must release
the custodial parent's claim to the child without any conditions.
For example, the release must not depend on the noncustodial
parent paying support.
Release of certain tax benefits revoked. A custodial parent
who has revoked his or her previous release of a claim to certain
tax benefits for a child must include a copy of the revocation
with his or her return. For details, see Form 8332.
Exception to citizen test. If you are a U.S. citizen or U.S. national and your adopted child lived with you all year as a member of your household, that child meets the requirement to be a
U.S. citizen in Step 2, question 1; Step 3, question 2; Step 4,
question 2; and Step 5, question 2.
Exception to gross income test. If your relative (including a
person who lived with you all year as a member of your household) is permanently and totally disabled (defined later), certain
income for services performed at a sheltered workshop may be
excluded for this test. For details, see Pub. 501.
Exception to time lived with you. Temporary absences by you
or the other person for special circumstances, such as school,
vacation, business, medical care, military service, or detention
in a juvenile facility, count as time the person lived with you.
Also see Children of divorced or separated parents, earlier, or
Kidnapped child, later.
If the person meets all other requirements to be your qualifying child but was born or died in 2021, the person is considered
to have lived with you for more than half of 2021 if your home
was this person's home for more than half the time he or she
was alive in 2021. If the person meets all other requirements to
be your qualifying child but you adopted the person in 2021, the
person was lawfully placed with you for legal adoption by you
in 2021, or the person was an eligible foster child placed with
you during 2021, the person is considered to have lived with
you for more than half of 2021 if your main home was this person's main home for more than half the time since he or she was
adopted or placed with you in 2021.
Any other person is considered to have lived with you for all
of 2021 if the person was born or died in 2021 and your home
was this person's home for the entire time he or she was alive in
2021 or if you adopted the person in 2021, the person was lawfully placed with you for legal adoption by you in 2021, or the
person was an eligible foster child placed with you during 2021
and your main home was the person's main home for the entire
time since he or she was adopted or placed with you in 2021.
Foster child. A foster child is any child placed with you by an
authorized placement agency or by judgment, decree, or other
order of any court of competent jurisdiction.
Kidnapped child. If your child is presumed by law enforcement authorities to have been kidnapped by someone who isn't a
family member, you may be able to take the child into account
in determining your eligibility for head of household or qualifying widow(er) filing status, the child tax credit, the credit for
other dependents, and the earned income credit (EIC). For details, see Pub. 501 (Pub. 596 for the EIC).
Married person. If the person is married and files a joint return, you can't claim that person as your dependent. However, if
the person is married but doesn't file a joint return or files a
joint return only to claim a refund of withheld income tax or estimated tax paid, you may be able to claim him or her as a dependent. (See Pub. 501 for details and examples.) In that case,
go to Step 2, question 3 (for a qualifying child), or Step 4, question 4 (for a qualifying relative).
Multiple support agreements. If no one person contributed
over half of the support of your relative (or a person who lived
with you all year as a member of your household) but you and
another person(s) provided more than half of your relative's
support, special rules may apply that would treat you as having
provided over half of the support. For details, see Pub. 501.
Permanently and totally disabled. A person is permanently
and totally disabled if, at any time in 2021, the person can't engage in any substantial gainful activity because of a physical or
-21-
Need more information or forms? Visit IRS.gov.
mental condition and a doctor has determined that this condition
has lasted or can be expected to last continuously for at least a
year or can be expected to lead to death.
Public assistance payments. If you received payments under
the Temporary Assistance for Needy Families (TANF) program
or other public assistance program and you used the money to
support another person, see Pub. 501.
Qualifying child of more than one person. Even if a child
meets the conditions to be the qualifying child of more than one
person, only one person can claim the child as a qualifying child
for all of the following tax benefits, unless the special rule for
Children of divorced or separated parents, described earlier,
applies.
1. Nonrefundable child tax credit and credit for other dependents (line 19) and refundable child tax credit or additional
child tax credit (line 28).
2. Head of household filing status.
3. Credit for child and dependent care expenses (Schedule
3, line 2 or 13g).
4. Exclusion for dependent care benefits (Form 2441, Part
III).
5. Earned income credit (line 27a).
No other person can take any of the five tax benefits just listed
based on the qualifying child. If you and any other person can
claim the child as a qualifying child, the following rules apply.
• If only one of the persons is the child's parent, the child is
treated as the qualifying child of the parent.
• If the parents file a joint return together and can claim the
child as a qualifying child, the child is treated as the qualifying
child of the parents.
• If the parents don’t file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the
child as the qualifying child of the parent with whom the child
lived for the longer period of time in 2021. If the child lived
with each parent for the same amount of time, the IRS will treat
the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for 2021.
• If no parent can claim the child as a qualifying child, the
child is treated as the qualifying child of the person who had the
highest AGI for 2021.
• If a parent can claim the child as a qualifying child but no
parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for 2021, but
only if that person's AGI is higher than the highest AGI of any
parent of the child who can claim the child.
Example. Your daughter meets the conditions to be a qualifying child for both you and your mother. Your daughter doesn't
meet the conditions to be a qualifying child of any other person,
including her other parent. Under the rules just described, you
can claim your daughter as a qualifying child for all of the five
tax benefits just listed for which you otherwise qualify. Your
mother can't claim any of those five tax benefits based on your
Need more information or forms? Visit IRS.gov.
daughter. However, if your mother's AGI is higher than yours
and you do not claim your daughter as a qualifying child, your
daughter is the qualifying child of your mother.
For more details and examples, see Pub. 501.
If you will be claiming the child as a qualifying child, go to
Step 2. Otherwise, stop; you can't claim any benefits based on
this child.
Social security number. You must enter each dependent's social security number (SSN). Be sure the name and SSN entered
agree with the dependent's social security card. Otherwise, at
the time we process your return, we may reduce or disallow any
tax benefits (such as the child tax credit) based on that dependent. If the name or SSN on the dependent's social security card
isn't correct or you need to get an SSN for your dependent, contact the Social Security Administration. See Social Security
Number (SSN), earlier. If your dependent won't have a number
by the date your return is due, see What if You Can't File on
Time? earlier.
For the child tax credit, your child must have the required
SSN. The required SSN is one that is valid for employment and
that is issued by the Social Security Administration before the
due date of your 2021 return (including extensions). If your
child was a U.S. citizen when the child received the SSN, the
SSN is valid for employment. If “Not Valid for Employment” is
printed on your child’s social security card and your child’s immigration status has changed so that your child is now a U.S.
citizen or permanent resident, ask the SSA for a new social security card without the legend. However, if “Valid for Work
Only With DHS Authorization” is printed on your child’s social
security card, your child has the required SSN only as long as
the DHS authorization is valid.
If your dependent child was born and died in 2021 and you
do not have an SSN for the child, enter “Died” in column (2) of
the Dependents section and include a copy of the child's birth
certificate, death certificate, or hospital records. The document
must show the child was born alive.
If you, or your spouse if filing jointly, didn't have an SSN (or
ITIN) issued on or before the due date of your 2021 return (including extensions), you can't claim the child tax credit or the
credit for other dependents on your original or an amended
2021 return.
If you apply for an ITIN on or before the due date of your
2021 return (including extensions) and the IRS issues you an
ITIN as a result of the application, the IRS will consider your
ITIN as issued on or before the due date of your return.
Student. A student is a child who during any part of 5 calendar
months of 2021 was enrolled as a full-time student at a school
or took a full-time, on-farm training course given by a school or
a state, county, or local government agency. A school includes a
technical, trade, or mechanical school. It doesn't include an
on-the-job training course, correspondence school, or school offering courses only through the Internet.
-22-
Income
Generally, you must report all income
except income that is exempt from tax
by law. For details, see the following instructions and the Schedule 1 instructions, especially the instructions for lines
1 through 7 and Schedule 1, lines 1
through 8z. Also see Pub. 525.
Forgiveness of Paycheck
Protection Program (PPP)
Loans
The forgiveness of a PPP Loan creates
tax-exempt income, so although you
don't need to report the income from the
forgiveness of your PPP Loan on Form
1040 or 1040-SR, you do need to report
certain information related to your PPP
Loan.
Rev. Proc. 2021-48, 2021-49 I.R.B.
835, permits taxpayers to treat tax-exempt income resulting from the forgiveness of a PPP Loan as received or accrued: (1) as, and to the extent that, eligible expenses are paid or incurred; (2)
when you apply for forgiveness of the
PPP Loan; or (3) when forgiveness of
the PPP Loan is granted. If you have
tax-exempt income resulting from the
forgiveness of a PPP Loan, attach a
statement to your return reporting each
taxable year for which you are applying
Rev. Proc. 2021-48, and which section
of Rev. Proc. 2021-48 you are applying—either section 3.01(1), (2), or (3).
Any statement should include the following information for each PPP Loan:
1. Your name, address, and ITIN or
SSN;
2. A statement that you are applying
or applied section 3.01(1), (2), or (3) of
Rev. Proc. 2021-48, and for what taxable year (2020 or 2021) as applicable;
3. The amount of tax-exempt income from forgiveness of the PPP Loan
that you are treating as received or accrued and for what taxable year (2020 or
2021); and
4. Whether forgiveness of the PPP
Loan has been granted as of the date you
file your return.
Write “RP2021-48” at the top of your
attached statement.
Foreign-Source Income
You must report unearned income, such
as interest, dividends, and pensions,
from sources outside the United States
unless exempt by law or a tax treaty.
You must also report earned income,
such as wages and tips, from sources
outside the United States.
If you worked abroad, you may be
able to exclude part or all of your foreign earned income. For details, see
Pub. 54 and Form 2555.
Foreign retirement plans. If you were
a beneficiary of a foreign retirement
plan, you may have to report the undistributed income earned in your plan.
However, if you were the beneficiary of
a Canadian registered retirement plan,
see Rev. Proc. 2014-55, 2014-44 I.R.B.
753,
available
at
IRS.gov/irb/
2014-44_IRB#RP2014-55, to find out if
you can elect to defer tax on the undistributed income.
Report distributions from foreign
pension plans on lines 5a and 5b.
Foreign accounts and trusts. You
must complete Part III of Schedule B if
you:
• Had a foreign account; or
• Received a distribution from, or
were a grantor of, or a transferor to, a
foreign trust.
Foreign financial assets. If you had
foreign financial assets in 2021, you
may have to file Form 8938. See Form
8938 and its instructions.
Chapter 11 Bankruptcy
Cases
If you are a debtor in a chapter 11 bankruptcy case, income taxable to the bankruptcy estate and reported on the estate's
income tax return includes:
• Earnings from services you performed after the beginning of the case
(both wages and self-employment income); and
• Income from property described in
section 541 of title 11 of the U.S. Code
that you either owned when the case began or that you acquired after the case
began and before the case was closed,
dismissed, or converted to a case under a
different chapter.
Because this income is taxable to the
estate, don’t include this income on your
-23-
own individual income tax return. The
only exception is for purposes of figuring your self-employment tax. For that
purpose, you must take into account all
your self-employment income for the
year from services performed both before and after the beginning of the case.
Also, you (or the trustee if one is appointed) must allocate between you and
the bankruptcy estate the wages, salary,
or other compensation and withheld income tax reported to you on Form W-2.
A similar allocation is required for income and withheld income tax reported
to you on Forms 1099. You must also
include a statement that indicates you
filed a chapter 11 case and that explains
how income and withheld income tax reported to you on Forms W-2 and 1099
are allocated between you and the estate.
For more details, including acceptable
allocation methods, see Notice 2006-83,
2006-40 I.R.B. 596, available at
IRS.gov/irb/
2006-40_IRB#NOT-2006-83.
Community Property States
Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington,
and Wisconsin. If you and your spouse
lived in a community property state, you
must usually follow state law to determine what is community income and
what is separate income. For details, see
Form 8958 and Pub. 555.
Nevada, Washington, and California
domestic partners. A registered domestic partner in Nevada, Washington,
or California must generally report half
the combined community income of the
individual and his or her domestic partner. See Form 8958 and Pub. 555.
Rounding Off to Whole
Dollars
You can round off cents to whole dollars
on your return and schedules. If you do
round to whole dollars, you must round
all amounts. To round, drop amounts under 50 cents and increase amounts from
50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.
If you have to add two or more
amounts to figure the amount to enter on
a line, include cents when adding the
amounts and round off only the total.
Need more information or forms? Visit IRS.gov.
If you are entering amounts that include cents, make sure to include the
decimal point. There is no cents column
on the form.
The lines on Forms 1040 and
1040-SR are the same. ReferenCAUTION ces to lines in the following instructions refer to the line on either
form.
!
Line 1
Wages, Salaries, Tips, etc.
Enter the total of your wages, salaries,
tips, etc. If a joint return, also include
your spouse's income. For most people,
the amount to enter on this line should
be shown in box 1 of their Form(s) W-2.
But the following types of income must
also be included in the total on line 1.
• All wages received as a household
employee. An employer isn’t required to
provide a Form W-2 to you if he or she
paid you wages of less than $2,300 in
2021. If you received wages as a household employee and you didn’t receive a
Form W-2 because an employer paid
you less than $2,300 in 2021, enter
“HSH” and the amount not reported to
you on a Form W-2 in the space to the
left of line 1. For information on employment taxes for household employees, see Tax Topic 756.
• Any Medicaid waiver payments
you received that you choose to include
in earned income for purposes of claiming a credit or other tax benefit, even if
you didn’t receive a Form W-2 reporting
these payments. See the instructions for
Schedule 1, line 8z.
• Tip income you didn't report to
your employer. This should include any
allocated tips shown in box 8 on your
Form(s) W-2 unless you can prove that
your unreported tips are less than the
amount in box 8. Allocated tips aren't included as income in box 1. See Pub. 531
for more details. Also include the value
of any noncash tips you received, such
as tickets, passes, or other items of value. Although you don’t report these noncash tips to your employer, you must report them on line 1.
You may owe social security
and Medicare or railroad reCAUTION tirement (RRTA) tax on unreported tips. See the instructions for
Schedule 2, line 5.
!
• Dependent care benefits, which
should be shown in box 10 of your
Form(s) W-2. But first complete Form
2441 to see if you can exclude part or all
of the benefits.
• Employer-provided adoption benefits, which should be shown in box 12 of
your Form(s) W-2 with code T. But see
the Instructions for Form 8839 to find
out if you can exclude part or all of the
benefits. You may also be able to exclude amounts if you adopted a child
with special needs and the adoption became final in 2021.
• Scholarship and fellowship grants
not reported on Form W-2. Also enter
“SCH” and the amount on the dotted
line next to line 1. However, if you were
a degree candidate, include on line 1 only the amounts you used for expenses
other than tuition and course-related expenses. For example, amounts used for
room, board, and travel must be reported
on line 1.
• Excess elective deferrals. The
amount deferred should be shown in
box 12 of your Form W-2, and the “Retirement plan” box in box 13 should be
checked. If the total amount you (or
your spouse if filing jointly) deferred for
2021 under all plans was more than
$19,500 (excluding catch-up contributions as explained later), include the excess on line 1. This limit is (a) $13,500
if you have only SIMPLE plans, or (b)
$22,500 for section 403(b) plans if you
qualify for the 15-year rule in Pub. 571.
Although designated Roth contributions
are subject to this limit, don’t include
the excess attributable to such contributions on line 1. They are already included as income in box 1 of your Form
W-2.
A higher limit may apply to participants in section 457(b) deferred compensation plans for the 3 years before retirement age. Contact your plan administrator for more information.
If you were age 50 or older at the end
of 2021, your employer may have allowed an additional deferral (catch-up
contributions) of up to $6,500 ($3,000
Need more information or forms? Visit IRS.gov.
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for section 401(k)(11) and SIMPLE
plans). This additional deferral amount
isn't subject to the overall limit on elective deferrals.
You can't deduct the amount
deferred. It isn't included as inCAUTION come in box 1 of your Form
W-2.
!
• Disability pensions shown on
Form 1099-R if you haven’t reached the
minimum retirement age set by your employer. But see Insurance Premiums for
Retired Public Safety Officers in the instructions for lines 5a and 5b. Disability
pensions received after you reach minimum retirement age and other payments
shown on Form 1099-R (other than payments from an IRA*) are reported on
lines 5a and 5b. Payments from an IRA
are reported on lines 4a and 4b.
• Corrective distributions from a retirement plan shown on Form 1099-R of
excess elective deferrals and excess contributions (plus earnings). But don’t include distributions from an IRA* on
line 1. Instead, report distributions from
an IRA on lines 4a and 4b.
• Wages from Form 8919, line 6.
*This includes a Roth, SEP, or SIMPLE IRA.
Were You a Statutory Employee?
If you were a statutory employee, the
“Statutory employee” box in box 13 of
your Form W-2 should be checked. Statutory employees include full-time life
insurance salespeople and certain agent
or commission drivers, certain traveling
salespeople, and certain homeworkers.
Statutory employees report the amount
shown in box 1 of Form W-2 on a
Schedule C along with any related business expenses.
Missing or Incorrect Form W-2?
Your employer is required to provide or
send Form W-2 to you no later than
January 31, 2022. If you don’t receive it
by early February, use Tax Topic 154 to
find out what to do. Even if you don’t
get a Form W-2, you must still report
your earnings on line 1. If you lose your
Form W-2 or it is incorrect, ask your
employer for a new one.
Line 2a
Tax-Exempt Interest
If you received any tax-exempt interest
(including any tax-exempt original issue
discount (OID)), such as from municipal
bonds, each payer should send you a
Form 1099-INT or a Form 1099-OID. In
general, your tax-exempt stated interest
should be shown in box 8 of Form
1099-INT or, for a tax-exempt OID
bond, in box 2 of Form 1099-OID and
your tax-exempt OID should be shown
in box 11 of Form 1099-OID. Enter the
total on line 2a. However, if you acquired a tax-exempt bond at a premium,
only report the net amount of tax-exempt interest on line 2a (that is, the excess of the tax-exempt interest received
during the year over the amortized bond
premium for the year). Also, if you acquired a tax-exempt OID bond at an acquisition premium, only report the net
amount of tax-exempt OID on line 2a
(that is, the excess of tax-exempt OID
for the year over the amortized acquisition premium for the year). See Pub. 550
for more information about OID, bond
premium, and acquisition premium.
Also include on line 2a any exempt-interest dividends from a mutual
fund or other regulated investment company. This amount should be shown in
box 11 of Form 1099-DIV.
Don’t include interest earned on your
IRA, health savings account, Archer or
Medicare Advantage MSA, or Coverdell
education savings account.
Don't include any amounts related to the forgiveness of PPP
CAUTION Loans on this line.
!
Line 2b
Taxable Interest
Each payer should send you a Form
1099-INT or Form 1099-OID. Enter
your total taxable interest income on
line 2b. But you must fill in and attach
Schedule B if the total is over $1,500 or
any of the other conditions listed at the
beginning of the Schedule B instructions
applies to you.
For more details about reporting taxable interest, including market discount
on bonds and adjustments for amortiza-
ble bond premium or acquisition premium, see Pub. 550.
Interest credited in 2021 on deposits
that you couldn't withdraw because of
the bankruptcy or insolvency of the financial institution may not have to be
included in your 2021 income. For details, see Pub. 550.
If you get a 2021 Form
TIP 1099-INT for U.S. savings bond
interest that includes amounts
you reported before 2021, see Pub. 550.
Line 3a
Qualified Dividends
Enter your total qualified dividends on
line 3a. Qualified dividends are also included in the ordinary dividend total required to be shown on line 3b. Qualified
dividends are eligible for a lower tax
rate than other ordinary income. Generally, these dividends are shown in
box 1b of Form(s) 1099-DIV. See Pub.
550 for the definition of qualified dividends if you received dividends not reported on Form 1099-DIV.
Exception. Some dividends may be reported as qualified dividends in box 1b
of Form 1099-DIV but aren't qualified
dividends. These include:
• Dividends you received as a nominee. See the Schedule B instructions.
• Dividends you received on any
share of stock that you held for less than
61 days during the 121-day period that
began 60 days before the ex-dividend
date. The ex-dividend date is the first
date following the declaration of a dividend on which the purchaser of a stock
isn't entitled to receive the next dividend
payment. When counting the number of
days you held the stock, include the day
you disposed of the stock but not the day
you acquired it. See the examples that
follow. Also, when counting the number
of days you held the stock, you can't
count certain days during which your
risk of loss was diminished. See Pub.
550 for more details.
• Dividends attributable to periods
totaling more than 366 days that you received on any share of preferred stock
held for less than 91 days during the
181-day period that began 90 days before the ex-dividend date. When counting the number of days you held the
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stock, you can't count certain days during which your risk of loss was diminished. See Pub. 550 for more details.
Preferred dividends attributable to periods totaling less than 367 days are subject to the 61-day holding period rule
just described.
• Dividends on any share of stock to
the extent that you are under an obligation (including a short sale) to make related payments with respect to positions
in substantially similar or related property.
• Payments in lieu of dividends, but
only if you know or have reason to
know that the payments aren't qualified
dividends.
• Dividends from a corporation that
first became a surrogate foreign corporation after December 22, 2017, other than
a foreign corporation that is treated as a
domestic corporation under section
7874(b).
Example 1. You bought 5,000 shares
of XYZ Corp. common stock on July 8,
2021. XYZ Corp. paid a cash dividend
of 10 cents per share. The ex-dividend
date was July 16, 2021. Your Form
1099-DIV from XYZ Corp. shows $500
in box 1a (ordinary dividends) and in
box 1b (qualified dividends). However,
you sold the 5,000 shares on August 11,
2021. You held your shares of XYZ
Corp. for only 34 days of the 121-day
period (from July 9, 2021, through August 11, 2021). The 121-day period began on May 17, 2021 (60 days before
the ex-dividend date), and ended on
September 14, 2021. You have no qualified dividends from XYZ Corp. because
you held the XYZ stock for less than 61
days.
Example 2. The facts are the same as
in Example 1 except that you bought the
stock on July 15, 2021 (the day before
the ex-dividend date), and you sold the
stock on September 16, 2021. You held
the stock for 63 days (from July 16,
2021, through September 16, 2021). The
$500 of qualified dividends shown in
box 1b of Form 1099-DIV are all qualified dividends because you held the
stock for 61 days of the 121-day period
(from July 16, 2021, through September
14, 2021).
Example 3. You bought 10,000
shares of ABC Mutual Fund common
stock on July 8, 2021. ABC Mutual
Need more information or forms? Visit IRS.gov.
Fund paid a cash dividend of 10 cents a
share. The ex-dividend date was July 16,
2021. The ABC Mutual Fund advises
you that the part of the dividend eligible
to be treated as qualified dividends
equals 2 cents a share. Your Form
1099-DIV from ABC Mutual Fund
shows total ordinary dividends of $1,000
and qualified dividends of $200. However, you sold the 10,000 shares on August 11, 2021. You have no qualified
dividends from ABC Mutual Fund because you held the ABC Mutual Fund
stock for less than 61 days.
Use the Qualified Dividends
TIP and Capital Gain Tax Worksheet or the Schedule D Tax
Worksheet, whichever applies, to figure
your tax. See the instructions for line 16
for details.
Line 3b
Ordinary Dividends
Each payer should send you a Form
1099-DIV. Enter your total ordinary dividends on line 3b. This amount should
be shown in box 1a of Form(s)
1099-DIV.
You must fill in and attach Schedule B if the total is over $1,500 or you
received, as a nominee, ordinary dividends that actually belong to someone
else.
Nondividend Distributions
Some distributions are a return of your
cost (or other basis). They won't be
taxed until you recover your cost (or
other basis). You must reduce your cost
(or other basis) by these distributions.
After you get back all of your cost (or
other basis), you must report these distributions as capital gains on Form 8949.
For details, see Pub. 550.
Dividends on insurance poli-
TIP cies are a partial return of the
premiums you paid. Don’t report them as dividends. Include them in
income on Schedule 1, line 8z, only if
they exceed the total of all net premiums
you paid for the contract.
Lines 4a and 4b
IRA Distributions
You should receive a Form 1099-R
showing the total amount of any distribution from your IRA before income tax
or other deductions were withheld. This
amount should be shown in box 1 of
Form 1099-R. Unless otherwise noted in
the line 4a and 4b instructions, an IRA
includes a traditional IRA, Roth IRA,
simplified employee pension (SEP)
IRA, and a savings incentive match plan
for employees (SIMPLE) IRA. Except
as provided next, leave line 4a blank and
enter the total distribution (from Form
1099-R, box 1) on line 4b.
Exception 1. Enter the total distribution
on line 4a if you rolled over part or all of
the distribution from one:
• Roth IRA to another Roth IRA, or
• IRA (other than a Roth IRA) to a
qualified plan or another IRA (other
than a Roth IRA).
Also enter “Rollover” next to line 4b.
If the total distribution was rolled over,
enter -0- on line 4b. If the total distribution wasn't rolled over, enter the part not
rolled over on line 4b unless Exception 2
applies to the part not rolled over. Generally, a rollover must be made within
60 days after the day you received the
distribution. For more details on rollovers, see Pub. 590-A and Pub. 590-B.
If you rolled over the distribution into
a qualified plan or you made the rollover
in 2022, include a statement explaining
what you did.
Exception 2. If any of the following apply, enter the total distribution on line 4a
and see Form 8606 and its instructions
to figure the amount to enter on line 4b.
1. You received a distribution from
an IRA (other than a Roth IRA) and you
made nondeductible contributions to any
of your traditional or SEP IRAs for 2021
or an earlier year. If you made nondeductible contributions to these IRAs for
2021, also see Pub. 590-A and Pub.
590-B.
2. You received a distribution from
a Roth IRA. But if either (a) or (b) below applies, enter -0- on line 4b; you
don’t have to see Form 8606 or its instructions.
Need more information or forms? Visit IRS.gov.
-26-
a. Distribution code T is shown in
box 7 of Form 1099-R and you made a
contribution (including a conversion) to
a Roth IRA for 2015 or an earlier year.
b. Distribution code Q is shown in
box 7 of Form 1099-R.
3. You converted part or all of a traditional, SEP, or SIMPLE IRA to a Roth
IRA in 2021.
4. You had a 2020 or 2021 IRA contribution returned to you, with the related earnings or less any loss, by the due
date (including extensions) of your tax
return for that year.
5. You made excess contributions to
your IRA for an earlier year and had
them returned to you in 2021.
6. You recharacterized part or all of
a contribution to a Roth IRA as a contribution to another type of IRA, or vice
versa.
Exception 3. If all or part of the distribution is a qualified charitable distribution (QCD), enter the total distribution
on line 4a. If the total amount distributed
is a QCD, enter -0- on line 4b. If only
part of the distribution is a QCD, enter
the part that is not a QCD on line 4b unless Exception 2 applies to that part. Enter “QCD” next to line 4b.
A QCD is a distribution made directly by the trustee of your IRA (other than
an ongoing SEP or SIMPLE IRA) to an
organization eligible to receive tax-deductible contributions (with certain exceptions). You must have been at least
age 70 1/2 when the distribution was
made.
Generally, your total QCDs for the
year can't be more than $100,000. (On a
joint return, your spouse can also have a
QCD of up to $100,000.) The amount of
the QCD is limited to the amount that
would otherwise be included in your income. If your IRA includes nondeductible contributions, the distribution is first
considered to be paid out of otherwise
taxable income. See Pub. 590-B for details.
You can't claim a charitable
contribution deduction for any
CAUTION QCD not included in your income.
!
Exception 4. If all or part of the distribution is a health savings account (HSA)
funding distribution (HFD), enter the total distribution on line 4a. If the total
amount distributed is an HFD and you
elect to exclude it from income, enter -0on line 4b. If only part of the distribution is an HFD and you elect to exclude
that part from income, enter the part that
isn't an HFD on line 4b unless Exception
2 applies to that part. Enter “HFD” next
to line 4b.
An HFD is a distribution made directly by the trustee of your IRA (other
than an ongoing SEP or SIMPLE IRA)
to your HSA. If eligible, you can generally elect to exclude an HFD from your
income once in your lifetime. You can't
exclude more than the limit on HSA
contributions or more than the amount
that would otherwise be included in your
income. If your IRA includes nondeductible contributions, the HFD is first considered to be paid out of otherwise taxable income. See Pub. 969 for details.
The amount of an HFD reduces
the amount you can contribute
CAUTION to your HSA for the year. If you
fail to maintain eligibility for an HSA
for the 12 months following the month of
the HFD, you may have to report the
HFD as income and pay an additional
tax. See Form 8889, Part III.
!
More than one exception applies. If
more than one exception applies, include
a statement showing the amount of each
exception, instead of making an entry
next to line 4b. For example: “Line 4b –
$1,000 Rollover and $500 HFD.” But
you do not need to attach a statement if
only Exception 2 and one other exception apply.
More than one distribution. If you (or
your spouse if filing jointly) received
more than one distribution, figure the
taxable amount of each distribution and
enter the total of the taxable amounts on
line 4b. Enter the total amount of those
distributions on line 4a.
You may have to pay an additional tax if you received an
CAUTION early distribution from your
IRA and the total wasn't rolled over. See
the instructions for Schedule 2, line 8,
for details.
!
More information. For more information about IRAs, see Pub. 590-A and
Pub. 590-B.
Lines 5a and 5b
Pensions and Annuities
You should receive a Form 1099-R
showing the total amount of your pension and annuity payments before income tax or other deductions were withheld. This amount should be shown in
box 1 of Form 1099-R. Pension and annuity payments include distributions
from 401(k), 403(b), and governmental
457(b) plans. Rollovers and lump-sum
distributions are explained later. Don’t
include the following payments on lines
5a and 5b. Instead, report them on
line 1.
• Disability pensions received before
you reach the minimum retirement age
set by your employer.
• Corrective distributions (including
any earnings) of excess elective deferrals or other excess contributions to retirement plans. The plan must advise
you of the year(s) the distributions are
includible in income.
Attach
Form(s)
1099-R
to
TIP Form 1040 or 1040-SR if any
federal income tax was withheld.
Fully Taxable Pensions and
Annuities
Your payments are fully taxable if (a)
you didn't contribute to the cost (see
Cost, later) of your pension or annuity,
or (b) you got your entire cost back tax
free before 2021. But see Insurance Premiums for Retired Public Safety Officers, later. If your pension or annuity is
fully taxable, enter the total pension or
annuity payments (from Form(s)
1099-R, box 1) on line 5b; don’t make
an entry on line 5a.
Fully taxable pensions and annuities
also include military retirement pay
shown on Form 1099-R. For details on
military disability pensions, see Pub.
525. If you received a Form
RRB-1099-R, see Pub. 575 to find out
how to report your benefits.
Partially Taxable Pensions and
Annuities
Enter the total pension or annuity payments (from Form 1099-R, box 1) on
line 5a. If your Form 1099-R doesn't
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show the taxable amount, you must use
the General Rule explained in Pub. 939
to figure the taxable part to enter on
line 5b. But if your annuity starting date
(defined later) was after July 1, 1986,
see Simplified Method, later, to find out
if you must use that method to figure the
taxable part.
You can ask the IRS to figure the taxable part for you for a $1,000 fee. For
details, see Pub. 939.
If your Form 1099-R shows a taxable
amount, you can report that amount on
line 5b. But you may be able to report a
lower taxable amount by using the General Rule or the Simplified Method or if
the exclusion for retired public safety officers, discussed next, applies.
Insurance Premiums for Retired
Public Safety Officers
If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue
squad or ambulance crew), you can elect
to exclude from income distributions
made from your eligible retirement plan
that are used to pay the premiums for
coverage by an accident or health plan
or a long-term care insurance contract.
You can do this only if you retired because of disability or because you
reached normal retirement age. The premiums can be for coverage for you, your
spouse, or dependents. The distribution
must be from a plan maintained by the
employer from which you retired as a
public safety officer. Also, the distribution must be made directly from the plan
to the provider of the accident or health
plan or long-term care insurance contract. You can exclude from income the
smaller of the amount of the premiums
or $3,000. You can make this election
only for amounts that would otherwise
be included in your income.
An eligible retirement plan is a governmental plan that is a qualified trust or
a section 403(a), 403(b), or 457(b) plan.
If you make this election, reduce the
otherwise taxable amount of your pension or annuity by the amount excluded.
The amount shown in box 2a of Form
1099-R doesn't reflect the exclusion. Report your total distributions on line 5a
and the taxable amount on line 5b. Enter
“PSO” next to line 5b.
Need more information or forms? Visit IRS.gov.
Keep for Your Records
Simplified Method Worksheet—Lines 5a and 5b
Before you begin:
If you are the beneficiary of a deceased employee or former employee who died before August 21, 1996, include
any death benefit exclusion that you are entitled to (up to $5,000) in the amount entered on line 2 below.
More than one pension or annuity. If you had more than one partially taxable pension or annuity, figure the taxable part of each separately. Enter
the total of the taxable parts on Form 1040 or 1040-SR, line 5b. Enter the total pension or annuity payments received in 2021 on Form 1040 or
1040-SR, line 5a.
1. Enter the total pension or annuity payments from Form 1099-R, box 1. Also, enter this amount on Form 1040 or
1040-SR, line 5a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
1.
. . . . . .
8.
9. Taxable amount. Subtract line 8 from line 1. Enter the result, but not less than zero. Also, enter this amount on Form
1040 or 1040-SR, line 5b. If your Form 1099-R shows a larger amount, use the amount on this line instead of the
amount from Form 1099-R. If you are a retired public safety officer, see Insurance Premiums for Retired Public
Safety Officers before entering an amount on line 5b . . . . . . . . . . . . . . . . . . . . . .
9.
2. Enter your cost in the plan at the annuity starting date . . . . . . . . . . . . .
Note. If you completed this worksheet last year, skip line 3 and enter the amount from line 4
of last year’s worksheet on line 4 below (even if the amount of your pension or annuity has
changed). Otherwise, go to line 3.
2.
3. Enter the appropriate number from Table 1 below. But if your annuity starting date was after
1997 and the payments are for your life and that of your beneficiary, enter the appropriate
number from Table 2 below . . . . . . . . . . . . . . . . . . . . . 3.
4. Divide line 2 by the number on line 3 . . . . . . . . . . . . . . . . . . 4.
5. Multiply line 4 by the number of months for which this year’s payments were made. If your
annuity starting date was before 1987, skip lines 6 and 7 and enter this amount on line 8.
Otherwise, go to line 6 . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter the amount, if any, recovered tax free in years after 1986. If you completed this
worksheet last year, enter the amount from line 10 of last year’s worksheet . . . . . . 6.
7. Subtract line 6 from line 2 . . . . . . . . . . . . . . . . . . . . . . 7.
8. Enter the smaller of line 5 or line 7 . . . . . . . . . . . . . . . . . . . . .
10. Was your annuity starting date before 1987?
Yes.
STOP
No.
Add lines 6 and 8. This is the amount you have recovered tax free through 2021. You will need this
number if you need to fill out this worksheet next year . . . . . . . . . . . . . . .
. . 10.
11. Balance of cost to be recovered. Subtract line 10 from line 2. If zero, you won’t have to complete this
worksheet next year. The payments you receive next year will generally be fully taxable . . . . . .
. . 11.
Do not complete the rest of this worksheet.
Table 1 for Line 3 Above
IF the age at annuity starting
date was . . .
55 or under
56–60
61–65
66–70
71 or older
AND your annuity starting date was—
before November 19, 1996,
after November 18, 1996,
enter on line 3 . . .
enter on line 3 . . .
300
360
260
310
240
260
170
210
120
160
Table 2 for Line 3 Above
IF the combined ages at annuity
starting date were . . .
110 or under
111–120
121–130
131–140
141 or older
Need more information or forms? Visit IRS.gov.
THEN enter on line 3 . . .
410
360
310
260
210
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If you are retired on disability and reporting your disability pension on line 1,
include only the taxable amount on that
line and enter “PSO” and the amount excluded on the dotted line next to line 1.
If you are the beneficiary of an employee who died, see Pub. 575. If there
is more than one beneficiary, see Pub.
575 or Pub. 721 to figure each beneficiary's taxable amount.
Simplified Method
Cost
You must use the Simplified Method if
either of the following applies.
1. Your annuity starting date was after July 1, 1986, and you used this method last year to figure the taxable part.
2. Your annuity starting date was after November 18, 1996, and both of the
following apply.
a. The payments are from a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity.
b. On your annuity starting date, either you were under age 75 or the number of years of guaranteed payments was
fewer than 5. See Pub. 575 for the definition of guaranteed payments.
Your cost is generally your net investment in the plan as of the annuity starting date. It doesn't include pre-tax contributions. Your net investment may be
shown in box 9b of Form 1099-R.
If you must use the Simplified Method, complete the Simplified Method
Worksheet in these instructions to figure
the taxable part of your pension or annuity. For more details on the Simplified
Method, see Pub. 575 (or Pub. 721 for
U.S. Civil Service retirement benefits).
If you received U.S. Civil Service retirement benefits and you
CAUTION chose the alternative annuity
option, see Pub. 721 to figure the taxable part of your annuity. Do not use the
Simplified Method Worksheet in these
instructions.
!
Annuity Starting Date
Your annuity starting date is the later of
the first day of the first period for which
you received a payment or the date the
plan's obligations became fixed.
Age (or Combined Ages) at
Annuity Starting Date
If you are the retiree, use your age on
the annuity starting date. If you are the
survivor of a retiree, use the retiree's age
on his or her annuity starting date. But if
your annuity starting date was after 1997
and the payments are for your life and
that of your beneficiary, use your combined ages on the annuity starting date.
If you or the plan participant
TIP was born before January 2,
1936, you could pay less tax on
the distribution. See Form 4972.
Lines 6a and 6b
Rollovers
Generally, a rollover is a tax-free distribution of cash or other assets from one
retirement plan that is contributed to another plan within 60 days of receiving
the distribution. However, a rollover to a
Roth IRA or a designated Roth account
is generally not a tax-free distribution.
Use lines 5a and 5b to report a rollover,
including a direct rollover, from one
qualified employer's plan to another or
to an IRA or SEP.
Enter on line 5a the distribution from
Form 1099-R, box 1. From this amount,
subtract any contributions (usually
shown in box 5) that were taxable to you
when made. From that result, subtract
the amount of the rollover. Enter the remaining amount on line 5b. If the remaining amount is zero and you have no
other distribution to report on line 5b,
enter -0- on line 5b. Also enter "Rollover" next to line 5b.
See Pub. 575 for more details on rollovers, including special rules that apply
to rollovers from designated Roth accounts, partial rollovers of property, and
distributions under qualified domestic
relations orders.
Lump-Sum Distributions
If you received a lump-sum distribution
from a profit-sharing or retirement plan,
your Form 1099-R should have the "Total distribution" box in box 2b checked.
You may owe an additional tax if you
received an early distribution from a
qualified retirement plan and the total
amount wasn't rolled over. For details,
see the instructions for Schedule 2,
line 6.
Enter the total distribution on line 5a
and the taxable part on line 5b. For details, see Pub. 575.
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Social Security Benefits
You should receive a Form SSA-1099
showing in box 3 the total social security benefits paid to you. Box 4 will show
the amount of any benefits you repaid in
2021. If you received railroad retirement
benefits treated as social security, you
should receive a Form RRB-1099.
Use the Social Security Benefits
Worksheet in these instructions to see if
any of your benefits are taxable.
Exception. Do not use the Social Security Benefits Worksheet in these instructions if any of the following applies.
• You made contributions to a traditional IRA for 2021 and you or your
spouse were covered by a retirement
plan at work or through self-employment. Instead, use the worksheets in
Pub. 590-A to see if any of your social
security benefits are taxable and to figure your IRA deduction.
• You repaid any benefits in 2021
and your total repayments (box 4) were
more than your total benefits for 2021
(box 3). None of your benefits are taxable for 2021. Also, if your total repayments in 2021 exceed your total benefits
received in 2021 by more than $3,000,
you may be able to take an itemized deduction or a credit for part of the excess
repayments if they were for benefits you
included in income in an earlier year.
For more details, see Pub. 915.
• You file Form 2555, 4563, or
8815, or you exclude employer-provided
adoption benefits or income from sources within Puerto Rico. Instead, use the
worksheet in Pub. 915.
Benefits for earlier year re-
TIP ceived in 2021? If any of your
benefits are taxable for 2021
and they include a lump-sum benefit
payment that was for an earlier year,
you may be able to reduce the taxable
amount. See Lump-Sum Election in
Pub. 915 for details.
Need more information or forms? Visit IRS.gov.
Social security information.
TIP Social security beneficiaries
can now get a variety of information from the SSA website with a my
Social Security account, including getting a replacement Form SSA-1099 if
needed. For more information and to set
up an account, go to SSA.gov/
myaccount.
Disability payments (including Social
Security Disability Insurance (SSDI)
payments) are generally not included in
income if they are for injuries incurred
as a direct result of a terrorist attack directed against the United States or its
allies. If these payments are incorrectly
reported as taxable on Form W-2 or
Form 1099-R, contact the company or
agency making the disability payments
to get a corrected Form W-2 or Form
1099-R. If these payments are incorrectly reported as taxable on Form
SSA-1099, don't include the nontaxable
portion of income on your tax return.
You may receive a notice from the IRS
regarding the omitted payments. Follow
the instructions in the notice to explain
that the excluded payments aren't taxable. For more information about these
payments, see Pub. 3920.
Form RRB-1099. If you need a
TIP replacement Form RRB-1099,
call the Railroad Retirement
Board at 877-772-5772 or go to
www.rrb.gov.
Line 7
Capital Gain or (Loss)
If you sold a capital asset, such as a
stock or bond, you must complete and
attach Form 8949 and Schedule D.
Exception 1. You don’t have to file
Form 8949 or Schedule D if you aren’t
deferring any capital gain by investing
in a qualified opportunity zone fund and
both of the following apply.
1. You have no capital losses, and
your only capital gains are capital gain
distributions from Form(s) 1099-DIV,
box 2a (or substitute statements); and
2. None of the Form(s) 1099-DIV
(or substitute statements) have an
amount in box 2b (unrecaptured section
1250 gain), box 2c (section 1202 gain),
or box 2d (collectibles (28%) gain).
Exception 2. You must file Schedule D
but generally don’t have to file Form
8949 if Exception 1 doesn't apply, you
aren’t deferring any capital gain by investing in a qualified opportunity zone
fund or terminating deferral from an investment in a qualified opportunity
zone, and your only capital gains and
losses are:
• Capital gain distributions;
• A capital loss carryover from
2020;
• A gain from Form 2439 or 6252 or
Part I of Form 4797;
• A gain or loss from Form 4684,
6781, or 8824;
• A gain or loss from a partnership,
S corporation, estate, or trust; or
• Gains and losses from transactions
for which you received a Form 1099-B
(or substitute statement) that shows basis was reported to the IRS, the QOF
box in box 3 isn’t checked, and you
don’t need to make any adjustments in
column (g) of Form 8949 or enter any
codes in column (f) of Form 8949.
If Exception 1 applies, enter your total capital gain distributions (from
box 2a of Form(s) 1099-DIV) on line 7
and check the box on that line. If you received capital gain distributions as a
nominee (that is, they were paid to you
but actually belong to someone else), report on line 7 only the amount that belongs to you. Include a statement showing the full amount you received and the
amount you received as a nominee. See
the Schedule B instructions for filing requirements for Forms 1099-DIV and
1096.
If you don’t have to file Sched-
TIP ule D, use the Qualified Dividends and Capital Gain Tax
Worksheet in the line 16 instructions to
figure your tax.
Tax and Credits
Lines 12a, 12b, and 12c
Line 12a
Itemized Deductions or
Standard Deduction
In most cases, your federal income tax
will be less if you take the larger of your
itemized deductions or standard deduction.
Itemized Deductions
To figure your itemized deductions, fill
in Schedule A.
If you made a section 962 election and are taking a deduction
CAUTION under section 250 with respect
to any income inclusions under section
951 or 951A, don't report the deduction
on line 12a. Instead, report the tax with
respect to a section 962 election on
line 16 and include in the statement required by line 16 how you figured the
section 250 deduction.
!
Standard Deduction
Most Form 1040 filers can find their
standard deduction by looking at the
amounts listed to the left of line 12a.
Most Form 1040-SR filers can find their
standard deduction by using the chart on
the last page of Form 1040-SR.
Exception
1—Dependent. If
you
checked the “Someone can claim you as
a dependent” box, or if you’re filing
jointly and you checked the “Someone
can claim your spouse as a dependent”
box, use the Standard Deduction Worksheet for Dependents to figure your
standard deduction.
Someone claims you or your
Total Income and
Adjusted Gross
Income
Line 10
Enter any adjustments to income from
Schedule 1, line 26, on line 10.
Need more information or forms? Visit IRS.gov.
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TIP spouse as a dependent if they
list your or your spouse's name
and SSN in the Dependents section of
their return.
Exception 2—Born before January 2,
1957, or blind. If you checked any of
the following boxes, figure your standard deduction using the Standard Deduction Chart for People Who Were Born
Before January 2, 1957, or Were Blind
if you are filing Form 1040 or by using
Social Security Benefits Worksheet—Lines 6a and 6b
Before you begin:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Keep for Your Records
Figure any write-in adjustments to be entered on Schedule 1, line 24z (see the instructions for Schedule
1, line 24z).
If you are married filing separately and you lived apart from your spouse for all of 2021, enter “D” to
the right of the word “benefits” on line 6a. If you don’t, you may get a math error notice from the IRS.
Be sure you have read the Exception in the line 6a and 6b instructions to see if you can use this
worksheet instead of a publication to find out if any of your benefits are taxable.
Enter the total amount from box 5 of all your Forms SSA-1099 and
RRB-1099. Also enter this amount on Form 1040 or 1040-SR,
line 6a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
Multiply line 1 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Combine the amounts from Form 1040 or 1040-SR, lines 1, 2b, 3b, 4b, 5b, 7, and 8 . . . . . . . . . . .
Enter the amount, if any, from Form 1040 or 1040-SR, line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Combine lines 2, 3, and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the total of the amounts from Schedule 1, lines 11 through 20, and 23 and 25 . . . . . . . . . . .
Is the amount on line 6 less than the amount on line 5?
No.
None of your social security benefits are taxable. Enter -0- on Form 1040 or
STOP
1040-SR, line 6b.
2.
3.
4.
5.
6.
Yes. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
If you are:
• Married filing jointly, enter $32,000
• Single, head of household, qualifying widow(er), or married filing
separately and you lived apart from your spouse for all of 2021,
enter $25,000
...............
Married
filing
separately
and
you
lived
with
your
spouse
at
any
time
•
in 2021, skip lines 8 through 15; multiply line 7 by 85% (0.85) and
enter the result on line 16. Then, go to line 17
Is the amount on line 8 less than the amount on line 7?
No.
None of your social security benefits are taxable. Enter -0- on Form 1040 or
STOP
1040-SR, line 6b. If you are married filing separately and you lived apart from
your spouse for all of 2021, be sure you entered “D” to the right of the word
“benefits” on line 6a.
Yes. Subtract line 8 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
9.
Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying
widow(er), or married filing separately and you lived apart from your spouse for all
of 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
Subtract line 10 from line 9. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
Enter the smaller of line 9 or line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
Enter one-half of line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
Enter the smaller of line 2 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
Multiply line 11 by 85% (0.85). If line 11 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
Add lines 14 and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
Multiply line 1 by 85% (0.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
Taxable social security benefits. Enter the smaller of line 16 or line 17. Also enter this amount
on Form 1040 or 1040-SR, line 6b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.
TIP
If any of your benefits are taxable for 2021 and they include a lump-sum benefit payment that was for an earlier
year, you may be able to reduce the taxable amount. See Lump-Sum Election in Pub. 915 for details.
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Need more information or forms? Visit IRS.gov.
the chart on the last page of Form
1040-SR.
• You were born before January 2,
1957.
• You are blind.
• Spouse was born before January 2,
1957.
• Spouse is blind.
Exception 3—Separate return or dual-status alien. If you checked the box
labeled “Spouse itemizes on separate return or you were dual-status alien” on
the Spouse standard deduction line, your
standard deduction is zero, even if you
were born before January 2, 1957, or
were blind.
Exception 4—Increased standard deduction for net qualified disaster loss.
If you had a net qualified disaster loss
and you elect to increase your standard
deduction by the amount of your net
qualified disaster loss, use Schedule A
to figure your standard deduction. Qualified disaster loss refers to losses arising
from certain disasters occurring in 2016
and subsequent years. See the Instructions for Form 4684 and Schedule A,
line 16, for more information.
Line 12b
If you don't itemize deductions on
Schedule A (Form 1040), you (or you
and your spouse if filing jointly) may be
able to take a charitable deduction for
cash contributions made in 2021.
Enter the total amount of your contributions on line 12b. Don't enter more
than $300 ($600 if married filing jointly).
The contributions must be made to
organizations that are religious, charitable, educational, scientific, or literary in
purpose. See Pub. 526 for more information on the types of organizations that
qualify.
A deduction can't be taken for a contribution to an organization described in
I.R.C. 509(a)(3) or for the establishment
of a new, or maintenance of an existing,
donor-advised fund. Also, contributions
of noncash property and contributions
carried forward from prior years don't
qualify for this deduction. See the Instructions for Schedule A and Pub. 526
for more information on those types of
contributions.
Line 13
Qualified Business Income
Deduction (Section 199A
Deduction)
To figure your Qualified Business Income Deduction, use Form 8995 or
Form 8995-A as applicable.
Use Form 8995 if:
• You have qualified business income, qualified REIT dividends, or
qualified PTP income (loss);
• Your 2021 taxable income before
the qualified business income deduction
is less than or equal to $329,800 if married filing jointly, $164,925 if married
filing separately, and $164,900 for all
others; and
• You aren’t a patron in a specified
agricultural or horticultural cooperative.
If you don’t meet these requirements,
use Form 8995-A, Qualified Business
Income Deduction. Attach whichever
form you use (Form 8995 or 8995-A) to
your return. See the instructions for
Forms 8995 and 8995-A for more information for figuring and reporting your
qualified business income deduction.
Line 16
Tax
Include in the total on the entry space on
line 16 all of the following taxes that apply.
• Tax on your taxable income. Figure the tax using one of the methods described later.
• Tax from Form(s) 8814 (relating to
the election to report child's interest or
dividends). Check the appropriate box.
• Tax from Form 4972 (relating to
lump-sum distributions). Check the appropriate box.
• Tax with respect to a section 962
election (election made by a domestic
shareholder of a controlled foreign corporation to be taxed at corporate rates)
reduced by the amount of any foreign
tax credits claimed on Form 1118. See
section 962 for details. Check box 3 and
enter the amount and “962” in the space
next to that box. Attach a statement
showing how you figured the tax.
• Recapture of an education credit.
You may owe this tax if you claimed an
education credit in an earlier year, and
Need more information or forms? Visit IRS.gov.
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either tax-free educational assistance or
a refund of qualified expenses was received in 2021 for the student. See Form
8863 for more details. Check box 3 and
enter the amount and “ECR” in the
space next to that box.
• Any tax from Form 8621, line 16e,
relating to a section 1291 fund. Check
box 3 and enter the amount of the tax
and “1291TAX” in the space next to that
box.
• Repayment of any excess advance
payments of the health coverage tax
credit from Form 8885. Check box 3 and
enter the amount of the repayment and
“HCTC” in the space next to that box.
• Tax from Form 8978, line 14 (relating to partner's audit liability under
section 6226). Check box 3 and enter the
amount of the liability and “Form 8978”
in the space next to that box. If the
amount on Form 8978, line 14, is negative, see the instructions for Schedule 3
(Form 1040), line 6l.
• Net tax liability deferred under
section 965(i). If you had a net 965 inclusion and made an election to defer
your net 965 tax liability under section
965(i), check box 3 and enter (as a negative number) the amount of the deferred
net 965 tax liability and “965” on the
line next to that box.
• Triggering event under section
965(i). If you had a triggering event under section 965(i) during the year and
did not enter into a transfer agreement,
check box 3 and enter the amount of the
triggered deferred net 965 tax liability
and enter “965INC” on the line next to
the box.
Do you want the IRS to figure the
tax on your taxable income for you?
Yes. See chapter 13 of Pub. 17 for
details, including who is eligible and
what to do. If you have paid too much,
we will send you a refund. If you didn't
pay enough, we will send you a bill.
No. Use one of the following methods to figure your tax.
Tax Table or Tax Computation
Worksheet. If your taxable income is
less than $100,000, you must use the
Tax Table, later in these instructions, to
figure your tax. Be sure you use the correct column. If your taxable income is
$100,000 or more, use the Tax Computation Worksheet right after the Tax Table.
Standard Deduction Worksheet for Dependents—Line 12a
Keep for Your Records
Use this worksheet only if someone can claim you, or your spouse if filing jointly, as a dependent.
1.
Check if:
You were born before January 2, 1957.
You are blind.
Total number of boxes
1.
checked . . . . . . . . . . . . . . . . . .
Spouse was born before January 2, 1957.
Spouse is blind.
Is your earned income* more than $750?
2.
Yes. Add $350 to your earned income. Enter the total.
. . . . . . . . . . . . . . . . . . . . . . . . . . 2.
No. Enter $1,100.
3.
Enter the amount shown below for your filing status.
• Single or married filing separately—$12,550
. . . . . . . . . . . . . . . . . . . . . . . . . . 3.
• Married filing jointly—$25,100
• Head of household—$18,800
4.
Standard deduction.
a. Enter the smaller of line 2 or line 3. If born after January 1, 1957, and not blind, stop here and enter this
amount on Form 1040 or 1040-SR, line 12a. Otherwise, go to line 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4a.
b. If born before January 2, 1957, or blind, multiply the number on line 1 by $1,350 ($1,700 if single or head of
household) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b.
c. Add lines 4a and 4b. Enter the total here and on Form 1040 or 1040-SR, line 12a . . . . . . . . . . . . . . . . . . . . . . 4c.
* 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 1, and
Schedule 1, lines 3 and 6, minus the amount, if any, on Schedule 1, line 15.
Standard Deduction Chart for People Who Were Born Before January 2, 1957, or Were Blind
Don’t use this chart if someone can claim you, or your spouse if filing jointly, as a dependent. Instead, use the worksheet above.
You were born before January 2, 1957.
You are blind.
Spouse was born before January 2, 1957.
Spouse is blind.
Enter the total number of boxes checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
IF your filing
status is . . .
AND the number in
the box above is . . .
▶
THEN your standard
deduction is . . .
Single
1
2
$14,250
15,950
Married filing jointly
1
2
3
4
$26,450
27,800
29,150
30,500
Qualifying widow(er)
1
2
$26,450
27,800
Married filing separately*
1
2
3
4
$13,900
15,250
16,600
17,950
Head of household
1
2
$20,500
22,200
* You can check the boxes for spouse if your filing status is married filing separately and your spouse had no income, isn't filing a return, and can't be claimed
as a dependent on another person's return.
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Need more information or forms? Visit IRS.gov.
However, don’t use the Tax Table or
Tax Computation Worksheet to figure
your tax if any of the following applies.
Form 8615. Form 8615 must generally
be used to figure the tax on your unearned income over $2,200 if you are
under age 18, and in certain situations if
you are older.
You must file Form 8615 if you meet
all of the following conditions.
1. You had more than $2,200 of unearned income (such as taxable interest,
ordinary dividends, or capital gains (including capital gain distributions)).
2. You are required to file a tax return.
3. You were either:
a. Under age 18 at the end of 2021,
b. Age 18 at the end of 2021 and
didn't have earned income that was more
than half of your support, or
c. A full-time student at least age 19
but under age 24 at the end of 2021 and
didn't have earned income that was more
than half of your support.
4. At least one of your parents was
alive at the end of 2021.
5. You don’t file a joint return in
2021.
A child born on January 1, 2004, is
considered to be age 18 at the end of
2021; a child born on January 1, 2003, is
considered to be age 19 at the end of
2021; and a child born on January 1,
1998, is considered to be age 24 at the
end of 2021.
Schedule D Tax Worksheet. Use the
Schedule D Tax Worksheet in the Instructions for Schedule D to figure the
amount to enter on Form 1040 or
1040-SR, line 16, if:
• You have to file Schedule D, and
line 18 or 19 of Schedule D is more than
zero; or
• You have to file Form 4952 and
you have an amount on line 4g, even if
you don’t need to file Schedule D.
But if you are filing Form 2555, you
must use the Foreign Earned Income
Tax Worksheet instead.
Qualified Dividends and Capital Gain
Tax Worksheet. Use the Qualified
Dividends and Capital Gain Tax Worksheet, later, to figure your tax if you
don’t have to use the Schedule D Tax
Need more information or forms? Visit IRS.gov.
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Worksheet and if any of the following
applies.
• You reported qualified dividends
on Form 1040 or 1040-SR, line 3a.
• You don’t have to file Schedule D
and you reported capital gain distributions on Form 1040 or 1040-SR, line 7.
• You are filing Schedule D, and
Schedule D, lines 15 and 16, are both
more than zero.
But if you are filing Form 2555, you
must use the Foreign Earned Income
Tax Worksheet instead.
Schedule J. If you had income from
farming or fishing (including certain
amounts received in connection with the
Exxon Valdez litigation), your tax may
be less if you choose to figure it using
income averaging on Schedule J.
Foreign Earned Income Tax Worksheet. If you claimed the foreign earned
income exclusion, housing exclusion, or
housing deduction on Form 2555, you
must figure your tax using the Foreign
Earned Income Tax Worksheet.
Foreign Earned Income Tax Worksheet—Line 16
!
CAUTION
Keep for Your Records
If Form 1040 or 1040-SR, line 15, is zero, don’t complete this worksheet.
1. Enter the amount from Form 1040 or 1040-SR, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2a. Enter the amount from your (and your spouse's, if filing jointly) Form 2555, lines 45 and 50 . . . . . . 2a.
b. Enter the total amount of any itemized deductions or exclusions you couldn't claim because they are
related to excluded income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b.
c. Subtract line 2b from line 2a. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c.
3. Add lines 1 and 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Figure the tax on the amount on line 3. Use the Tax Table, Tax Computation Worksheet,
Qualified Dividends and Capital Gain Tax Worksheet*, Schedule D Tax Worksheet*, or Form
8615, whichever applies. See the instructions for Form 1040 or 1040-SR, line 16, to see which tax
computation method applies. (Don’t use a second Foreign Earned Income Tax Worksheet to figure
the tax on this line.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Figure the tax on the amount on line 2c. If the amount on line 2c is less than $100,000, use the
Tax Table to figure this tax. If the amount on line 2c is $100,000 or more, use the Tax Computation
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on
the entry space on Form 1040 or 1040-SR, line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
* Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet or Schedule D Tax Worksheet if
you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 4 (line 10 if you use the
Schedule D Tax Worksheet). Next, you must determine if you have a capital gain excess. To find out if you have a capital gain excess, subtract
Form 1040 or 1040-SR, line 15, from line 4 of your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax
Worksheet). If the result is more than zero, that amount is your capital gain excess.
If you don’t have a capital gain excess, complete the rest of either of those worksheets according to the worksheet's instructions. Then,
complete lines 5 and 6 above.
If you have a capital gain excess, complete a second Qualified Dividends and Capital Gain Tax Worksheet or Schedule D Tax Worksheet
(whichever applies) as instructed above but in its entirety and with the following additional modifications. Then, complete lines 5 and 6 above.
These modifications are to be made only for purposes of filling out the Foreign Earned Income Tax Worksheet above.
1. Reduce (but not below zero) the amount you would otherwise enter on line 3 of your Qualified Dividends and Capital Gain Tax Worksheet
or line 9 of your Schedule D Tax Worksheet by your capital gain excess.
2. Reduce (but not below zero) the amount you would otherwise enter on line 2 of your Qualified Dividends and Capital Gain Tax Worksheet
or line 6 of your Schedule D Tax Worksheet by any of your capital gain excess not used in (1) above.
3. Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess.
4. Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet in the Instructions for
Schedule D (Form 1040).
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Need more information or forms? Visit IRS.gov.
Qualified Dividends and Capital Gain Tax Worksheet—Line 16
Keep for Your Records
Before you begin:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
See the earlier instructions for line 16 to see if you can use this worksheet to figure your tax.
Before completing this worksheet, complete Form 1040 or 1040-SR through line 15.
If you don’t have to file Schedule D and you received capital gain distributions, be sure you checked the box
on Form 1040 or 1040-SR, line 7.
Enter the amount from Form 1040 or 1040-SR, line 15. However, if you are
filing Form 2555 (relating to foreign earned income), enter the amount from
line 3 of the Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . . . . . . . . . 1.
Enter the amount from Form 1040 or 1040-SR,
line 3a* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
Are you filing Schedule D?*
Yes. Enter the smaller of line 15 or 16 of
Schedule D. If either line 15 or 16 is blank
or a loss, enter -0-.
3.
No. Enter the amount from Form 1040 or
1040-SR, line 7.
Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
Subtract line 4 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . 5.
Enter:
$40,400 if single or married filing separately,
$80,800 if married filing jointly or qualifying widow(er),
. . . . . . . . . . . . 6.
$54,100 if head of household.
Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
Enter the smaller of line 5 or line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
Subtract line 8 from line 7. This amount is taxed at 0% . . . . . . . . . . . . . . . . . . . . 9.
Enter the smaller of line 1 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
Enter the amount from line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
Subtract line 11 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
Enter:
$445,850 if single,
$250,800 if married filing separately,
. . . . . . . . . . . . 13.
$501,600 if married filing jointly or qualifying widow(er),
$473,750 if head of household.
Enter the smaller of line 1 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
Add lines 5 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
Subtract line 15 from line 14. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . 16.
Enter the smaller of line 12 or line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
Multiply line 17 by 15% (0.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18.
Add lines 9 and 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.
Subtract line 19 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.
Multiply line 20 by 20% (0.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21.
Figure the tax on the amount on line 5. If the amount on line 5 is less than $100,000, use the Tax Table
to figure the tax. If the amount on line 5 is $100,000 or more, use the Tax Computation
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22.
Add lines 18, 21, and 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23.
Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table
to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24.
Tax on all taxable income. Enter the smaller of line 23 or 24. Also include this amount on the entry
space on Form 1040 or 1040-SR, line 16. If you are filing Form 2555, don’t enter this amount on the
entry space on Form 1040 or 1040-SR, line 16. Instead, enter it on line 4 of the Foreign Earned Income
Tax Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25.
* If you are filing Form 2555, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line.
Need more information or forms? Visit IRS.gov.
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Line 19
Nonrefundable Child Tax
Credit and Credit for Other
Dependents
Use Schedule 8812 (Form 1040) to figure your nonrefundable child tax credit
and credit for other dependents. For
2021, Schedule 8812 and its instructions
have been revised to be the single source
for figuring and reporting the nonrefundable child tax credit and the credit
for other dependents. If you are claiming
either the nonrefundable child tax credit
or the credit for other dependents, complete Schedule 8812 and attach it to your
Form 1040 or 1040-SR.
Form 8862, who must file. You must
file Form 8862 to claim the nonrefundable child tax credit or credit for other dependents if your child tax credit, additional child tax credit, or credit for other
dependents for a year after 2015 was denied or reduced for any reason other
than a math or clerical error. Attach a
completed Form 8862 to your 2021 return. Don’t file Form 8862 if you filed
Form 8862 for 2020, and the child tax
credit, additional child tax credit, or
credit for other dependents was allowed
for that year. See Form 8862 and its instructions for details.
If you take the nonrefundable
child tax credit or credit for
CAUTION other dependents even though
you aren't eligible and it is determined
that your error is due to reckless or intentional disregard of the rules for these
credits, you won't be allowed to take either credit or the additional child tax
credit for 2 years even if you're otherwise eligible to do so. If you take the
nonrefundable child tax credit or credit
for other dependents even though you
aren’t eligible and it is later determined
that you fraudulently took either credit,
you won't be allowed to take either credit or the additional child tax credit for
10 years. You may also have to pay penalties.
!
If your qualifying child didn’t
have an SSN valid for employCAUTION ment issued before the due date
of your 2021 return (including extensions), you can’t claim the nonrefundable child tax credit for that child on your
original or amended return. However,
you may be able to claim the credit for
other dependents for that child.
!
Include on line 25c any federal income tax withheld that is shown on a
Schedule K-1.
Also include on line 25c any tax
withheld that is shown on Form 1042-S,
Form 8805, or Form 8288-A. You
should attach the form to your return to
claim a credit for the withholding.
Line 26
Payments
2021 Estimated Tax Payments
Line 25
Federal Income Tax
Withheld
Line 25a—Form(s) W-2
Add the amounts shown as federal income tax withheld on your Form(s)
W-2. Enter the total on line 25a. The
amount withheld should be shown in
box 2 of Form W-2. Attach your
Form(s) W-2 to your return.
Line 25b—Form(s) 1099
Include on line 25b any federal income
tax withheld on your Form(s) 1099-R.
The amount withheld should be shown
in box 4. Attach your Form(s) 1099-R to
the front of your return if federal income
tax was withheld.
If you received a 2021 Form 1099
showing federal income tax withheld on
dividends, taxable or tax-exempt interest
income, unemployment compensation,
social security benefits, railroad retirement benefits, or other income you received, include the amount withheld in
the total on line 25b. This should be
shown in box 4 of Form 1099, box 6 of
Form SSA-1099, or box 10 of Form
RRB-1099.
Line 25c—Other Forms
Include on line 25c any federal income
tax withheld on your Form(s) W-2G.
The amount withheld should be shown
in box 4. Attach Form(s) W-2G to the
front of your return if federal income tax
was withheld.
If you had Additional Medicare Tax
withheld, include the amount shown on
Form 8959, line 24, in the total on
line 25c. Attach Form 8959.
-37-
Enter any estimated federal income tax
payments you made for 2021. Include
any overpayment that you applied to
your 2021 estimated tax from your 2020
return or an amended return (Form
1040-X).
If you and your spouse paid joint estimated tax but are now filing separate income tax returns, you can divide the
amount paid in any way you choose as
long as you both agree. If you can't
agree, you must divide the payments in
proportion to each spouse's individual
tax as shown on your separate returns
for 2021. For more information, see
Pub. 505. Be sure to show both SSNs in
the space provided on the separate returns. If you or your spouse paid separate estimated tax but you are now filing
a joint return, add the amounts you each
paid. Follow these instructions even if
your spouse died in 2021 or in 2022 before filing a 2021 return.
Divorced taxpayers. If you got divorced in 2021 and you made joint estimated tax payments with your former
spouse, enter your former spouse's SSN
in the space provided on the front of
Form 1040 or 1040-SR. If you were divorced and remarried in 2021, enter
your present spouse's SSN in the space
provided on the front of Form 1040 or
1040-SR. Also, on the dotted line next
to line 26, enter your former spouse's
SSN, followed by “DIV.”
Name change. If you changed your
name and you made estimated tax payments using your former name, attach a
statement to the front of Form 1040 or
1040-SR that explains all the payments
you and your spouse made in 2021 and
the name(s) and SSN(s) under which
you made them.
Need more information or forms? Visit IRS.gov.
Lines 27a, 27b, and 27c—
Earned Income Credit (EIC)
Step 1
What Is the EIC?
The EIC is a credit for certain people who work. The credit may
give you a refund even if you don’t owe any tax or didn’t have
any tax withheld.
You may elect to use your 2019 earned income to fig-
TIP ure your EIC if your 2019 earned income is more than
your 2021 earned income. For details, see Pub. 596.
You can't use your 2020 earned income instead of your
2021 earned income. You can only use your 2019
CAUTION earned income if it is more than your 2021 earned income.
!
If you make the election to use your 2019 earned income to
figure your EIC, enter your 2019 earned income on line 27c.
To Take the EIC:
• Follow the steps below.
• Complete the worksheet that applies to you or let the IRS
figure the credit for you.
• If you have a qualifying child, complete and attach Schedule
This text is long and has been trimmed here. Open the source document for the complete record.
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.