# Including the instructions for (2019) > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A9c258937486f59ac ## Record - **Collection:** Agency decision - **Document type:** Agency decision ## Text TAX YEAR 2019 1040 and 1040-SR R INSTRUCTIONS Including the instructions for Schedules 1 through 3 2019 Changes • Form 1040 has been redesigned. • Form 1040-SR, a new form, is available for use by taxpayers age 65 and older. • These instructions cover both Forms 1040 and 1040-SR. 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 Jan 08, 2020 Cat. No. 24811V Table of Contents Contents Department of the Treasury Internal Revenue Service Page Contents Page What's New . . . . . . . . . . . . . . . . . . . . . . . . 6 Assemble Your Return . . . . . . . . . . . . 61 Filing Requirements . . . . . . . . . . . . . . . . . . 8 Do You Have To File? . . . . . . . . . . . . . . 8 When and Where Should You File? . . . . . 8 2019 Tax Table . . . . . . . . . . . . . . . . . . . . 62 Line Instructions for Forms 1040 and 1040-SR . . . . . . . . . . . . . . . . . . . . . . 12 Filing Status . . . . . . . . . . . . . . . . . . . 12 Name and Address . . . . . . . . . . . . . . . 14 Social Security Number (SSN) . . . . . . . 14 Dependents, Qualifying Child for Child Tax Credit, and Credit for Other Dependents . . . . . . . . . . . . . . 16 Income . . . . . . . . . . . . . . . . . . . . . . . 20 Total Income and Adjusted Gross Income . . . . . . . . . . . . . . . . . . . . . 29 Tax and Credits . . . . . . . . . . . . . . . . . 29 Payments . . . . . . . . . . . . . . . . . . . . . 37 Refund . . . . . . . . . . . . . . . . . . . . . . . 55 Amount You Owe . . . . . . . . . . . . . . . . 58 Sign Your Return . . . . . . . . . . . . . . . . 60 -2- General Information . . . . . . . . . . . . . . . . . 75 Refund Information . . . . . . . . . . . . . . . . . . 80 Instructions for Schedule 1 . . . . . . . . . . . . . 81 Instructions for Schedule 2 . . . . . . . . . . . . . 91 Instructions for Schedule 3 . . . . . . . . . . . . . 95 Tax Topics . . . . . . . . . . . . . . . . . . . . . . . 98 Disclosure, Privacy Act, and Paperwork Reduction Act Notice . . . . . . . . . . . . 100 Order Form for Forms and Publications . . . 102 Major Categories of Federal Income and Outlays for Fiscal Year 2018 . . . . . . . 103 Index . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Form 1040 and 1040-SR Helpful Hints For 2019, you will use Form 1040 or, if you were born before January 2, 1955, you have the option to use new 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 deduction, self-employment tax, or educator expenses. Schedule 1, Part II Owe 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 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, or additional child tax credit, such as the net premium tax credit or health coverage tax credit. Have other payments, such as an amount paid with a request for an extension to file or excess social security tax withheld. -3- 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. Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights. What can the Taxpayer Advocate Service do for you? We can help you resolve problems that you can’t resolve with the IRS. And our service is free. If you qualify for our assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if: • Your problem is causing financial difficulty for you, your family, or your business. • You face (or your business is facing) an immediate threat of adverse action. • You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised. How can you reach us? We have offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is at www.TaxpayerAdvocate.IRS.gov and in your local directory. You can also call us 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. Our Tax Toolkit at www.TaxpayerAdvocate.IRS.gov can help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them. How else does the Taxpayer Advocate Service help taxpayers? TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to us at IRS.gov/SAMS. Low Income Taxpayer Clinics Help Taxpayers Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Some serve individuals whose income is below a certain level and who need to resolve a tax problem. These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Some clinics provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. For more information, and to find a clinic near you, read the LITC page on IRS.gov/LITC or IRS Publication 4134, Low Income Taxpayer Clinic List. You can also get this publication at your local IRS office or by calling 800-829-3676. Suggestions for Improving the IRS Taxpayer Advocacy Panel Have a suggestion for improving the IRS and do not know who to contact? The Taxpayer Advocacy Panel (TAP) is a diverse group of citizen volunteers who listen to taxpayers, identify taxpayers’ issues, and make suggestions for improving IRS service and customer satisfaction. The panel is demographically and geographically diverse, with at least one member from each state, the District of Columbia, and Puerto Rico. Contact TAP at www.improveirs.org or 888-912-1227 (toll-free). -4- 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, 2020, 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 2019, 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 March 2020. This information may be relevant if you purchased health insurance coverage for 2019 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 2019, 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. -5- What's New Form 1040-SR. Form 1040-SR, U.S. Tax Return for Seniors, has been introduced for 2019. You can use this form if you were born before January 2, 1955. The form generally mirrors Form 1040. These instructions cover both Forms 1040 and 1040-SR. Fewer numbered schedules. This year, there are only 3 numbered schedules instead of 6. Schedules 2 and 4 were combined into Schedule 2 and it's where you will report any additional taxes you may owe. Schedules 3 and 5 were combined into Schedule 3 and it’s where you will report any credits that you didn't claim on Form 1040 or 1040-SR. IRA and pension reporting. You will now report your IRA distributions and pensions and annuities on separate lines. Use lines 4a and 4b on Form 1040 or 1040-SR to report IRA distributions and the taxable amount. Use new lines 4c and 4d to report pensions and annuities and the taxable amount. See the instructions for Lines 4a and 4b and Lines 4c and 4d, later. Capital gain or (loss) is now reported on line 6. In 2018, capital gain or (loss) was reported on Schedule 1 (Form 1040), line 13. In 2019, it will be reported on Form 1040 or 1040-SR, line 6. Health care coverage shared responsibility payment. For 2019 you no longer need to either make a shared responsibility payment or file Form 8965 if you don't have minimum essential health care coverage for part or all of 2019. The “Full-year health care coverage or exempt” box has been removed from Form 1040. Standard deduction amount increased. For 2019, the standard deduction amount has been increased for all filers. The amounts are: • Single or Married filing separately—$12,200. For information about any additional changes to the 2019 tax law or any other developments affecting Form 1040 or 1040-SR or the instructions, go to IRS.gov/ Form1040. • Married filing jointly or Qualifying widow(er)—$24,400. • Head of household—$18,350. Qualified business income deduction. The simplified worksheet for figuring your qualified business income deduction is now Form 8995, Qualified Business Income Deduction Simplified Computation. If you don’t meet the requirements to file Form 8995, use Form 8995-A, Qualified Business Income Deduction. For more information, see each form’s instructions. Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount is increased to $71,700 ($111,700 if married filing jointly or qualifying widow(er); $55,850 if married filing separately). The income levels at which the AMT exemption begins to phase out have increased to $510,300 ($1,020,600 if married filing jointly or qualifying widow(er)). Qualified opportunity investment. If you held a qualified investment in a qualified opportunity fund at any time during the year, you must attach Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, to your return. For more information, see Form 8997 and its instructions. Virtual currency. If, in 2019, you engaged in a transaction involving virtual currency you will need to file Schedule 1. See the instructions for Schedule 1 for more information. Email address. An optional field for your email address has been added to Forms 1040 and 1040-SR. Medicaid waiver payments. Changes have been made to how Medicaid waiver payments are treated for purposes of the earned income credit. See the instructions for line 18a. -6- Extended tax provisions. Recent legislation extended certain tax benefits that had expired at the end of 2017. These tax benefits include the following. • Tuition and fees deduction. • Deduction for mortgage insurance premiums. • Nonbusiness energy property credit. • Alternative fuel vehicle refueling credit. • Indian employment credit. If you are eligible for one or more of these benefits in 2019, you can claim them on your 2019 return. If you are eligible for one or more of these benefits for tax year 2018, you will need to file an amended return, Form 1040-X, to claim them. See IRS.gov/Form1040X for more information about amending a tax return. Disaster tax relief. Disaster tax relief was enacted for those impacted by certain federally declared disasters. The tax benefits provided by this relief include the following. • An increased standard deduction based on your qualified disaster losses. See the instructions for line 9 and the Instructions for Schedule A for information on qualifying for and figuring the increased standard deduction. • Election to use your 2018 earned income to figure your 2019 earned income credit. See the instructions for line 18a for more information on this election. • Election to use your 2018 earned income to figure your 2019 additional child tax credit. See the instructions for line 18b and the Instructions for Schedule 8812 for more information on this election. 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 15, 2020 (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 $69,000 or less in 2019, 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 also can 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 $56,000 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 electronically—it’s easy. You can make electronic payments online, by phone, or from a mobile device. Paying electronically is safe and secure. The IRS uses the latest encryption technology and doesn’t store the bank account number you use to submit your payment. When you use any of the IRS electronic payment options, 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. It’s easy, secure, and much quicker than mailing in a check or money order. Go to IRS.gov/Payments to see all your electronic payment options. -7- 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 also should file if you are eligible for any of the following credits. • Earned income credit. • Additional child tax credit. • American opportunity credit. • Credit for federal tax on fuels. • Premium tax credit. • Health coverage tax credit. See Pub. 501 for details. Also see Pub. 501 if you do not have to file but received a Form 1099-B (or substitute statement). 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 2019 and advance payments of the premium tax credit were made for this coverage, you must file a 2019 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 2019 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 in- 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. clude on your return the income of a child who was under age 19 at the end of 2019 or was a full-time student under age 24 at the end of 2019. 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, 1996, is considered to be age 24 at the end of 2019. 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 2019. • 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 or Form 1040-NR-EZ. Pub. 519 discusses these requirements and other information to help aliens comply with U.S. tax law. ! When and Where Should You File? File Form 1040 or 1040-SR by April 15, 2020. 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 opera- -8- tion, 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, filing instructions and addresses are at the end of these instructions. What if You Can't File on Time? You can get an automatic 6-month extension if, no later than the date your return is due, you file Form 4868. For details, see Form 4868. Instead of filing Form 4868, you can apply for an automatic extension by making an electronic payment by the due date of your return. An automatic 6-month extension to file doesn't extend the 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, 2020, 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. • 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. • 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. 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 2019 you were* . . . THEN file a return if your gross income** was at least . . . Single under 65 65 or older $12,200 13,850 Married filing jointly*** under 65 (both spouses) 65 or older (one spouse) 65 or older (both spouses) $24,400 25,700 27,000 Married filing separately any age Head of household under 65 65 or older $18,350 20,000 Qualifying widow(er) under 65 65 or older $24,400 25,700 $5 *If you were born on January 1, 1955, you are considered to be age 65 at the end of 2019. (If your spouse died in 2019 or if you are preparing a return for someone who died in 2019, 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 2019, 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 5a and 5b 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 2019 (or on the date your spouse died) and your gross income was at least $5, you must file a return regardless of your age. -9- 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 $12,200. • Your gross income was more than the larger of— • $1,100, or • Your earned income (up to $11,850) plus $350. Yes. You must file a return if any of the following apply. • Your unearned income was over $2,750 ($4,400 if 65 or older and blind). • Your earned income was over $13,850 ($15,500 if 65 or older and blind). • Your gross income was more than the larger of— • $2,750 ($4,400 if 65 or older and blind), or • Your earned income (up to $11,850) plus $2,000 ($3,650 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 $12,200. • 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 $11,850) plus $350. Yes. You must file a return if any of the following apply. • Your unearned income was over $2,400 ($3,700 if 65 or older and blind). • Your earned income was over $13,500 ($14,800 if 65 or older and blind). • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. • Your gross income was more than the larger of— • $2,400 ($3,700 if 65 or older and blind), or • Your earned income (up to $11,850) plus $1,650 ($2,950 if 65 or older and blind). -10- Chart C—Other Situations When You Must File You must file a return if any of the seven conditions below apply for 2019. 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 12a and Schedule 2, lines 7b and 8. 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). -11- Need more information or forms? Visit IRS.gov. 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, 1955. Fiscal year filers. If you are a fiscal year filer using a tax year other than January 1 through December 31, 2019, 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. Section references are to the Internal Revenue Code. 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 Form 1040 or Form 1040-SR 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 7. You may instead put an asterisk next to line 7 and in the white space at the bottom of page 2 of Form 1040 or 1040-SR enter “*Line 7: 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, 2019. • 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 2019, your divorce wasn't final (an interlocutory decree), you are considered married and can't check the box. • You were widowed before January 1, 2019, and didn't remarry before the end of 2019. 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 2019, even if you didn't live with your spouse at the end of 2019. • Your spouse died in 2019 and you didn't remarry in 2019. • You were married at the end of 2019 and your spouse died in 2020 before filing a 2019 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 Need more information or forms? Visit IRS.gov. -12- file separate returns for that year after the due date of the return. Joint and several tax liability. If you file a joint return, both you and your spouse are generally responsible for the tax and interest or penalties due on the return. This means that if one spouse doesn't pay the tax due, the other may have to. Or, if one spouse doesn't report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. You may want to file separately if: • You believe your spouse isn't reporting all of his or her income, or • You 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 2019, you can elect to be treated as a resident alien and file a joint return. See Pub. 519 for details. 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 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.” 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 usually will pay more tax than if you use another filing status for which you qualify. Also, if you file a separate return, you can't take the student loan interest deduction, the tuition and fees deduction, the education credits, or the earned income credit. You also can't take the standard deduction if your spouse itemizes deductions. 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 2019. See Married persons who live apart. 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 2019. But if, at the end of 2019, 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 2019 and you meet the other rules under Married persons who live apart. • You are married to a nonresident alien at any time during the year and the alien spouse elects to be treated as a resident alien. 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 2019 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). 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 2019, 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 2019 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 checkboxes. 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. -13- 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 2019, you still may be able to file as head of household. If the person is your qualifying child, the child must have lived with you for more than half the part of the year he or she was alive. If the person is anyone else, see Pub. 501. Keeping up a home. To find out what is included in the cost of keeping up a home, see Pub. 501. Married persons who live apart. Even if you weren’t divorced or legally separated at the end of 2019, you are considered unmarried if all of the following apply. • You lived apart from your spouse for the last 6 months of 2019. 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 2019. • Your home was the main home of your child, stepchild, or foster child for more than half of 2019 (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 Need more information or forms? Visit IRS.gov. 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 2019 if all of the following apply. 1. Your spouse died in 2017 or 2018 and you didn't remarry before the end of 2019. 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 2019: a. The child had gross income of $4,200 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 2019. 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 2019, 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 2019 if the child was born or died in 2019 and your home was the child's home for the entire time he or she was alive. Keeping up a home. To find out what is included in the cost of keeping up a home, see Pub. 501. 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 2018 and you are filing a joint return for 2019 with the same spouse, be sure to enter your names and SSNs in the same order as on your 2018 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. Need more information or forms? Visit IRS.gov. -14- 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 documents, to the Social Security Administration (SSA). You can get Form SS-5 online at SSA.gov, 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. 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 in the last 3 years, or if your ITIN has the middle digits 83, 84, 85, 86, or 87, (9NN-83-NNNN), it expired at the end of 2019 and must be renewed if you need to file a federal tax return in 2020. 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 with middle digits 70 TIP through 82 have expired and also must be renewed if you need to file a tax return in 2020 and haven’t already renewed the ITIN. 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 page 1 of that form that can calculate the amount of your standard deduction in most situations. Single and Married Filing Jointly Blindness 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 you were a dual-status alien, check the “Spouse itemizes on a separate return 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 2019 and you and your spouse agree to be taxed on your combined worldwide income, don’t check the box. If you weren’t totally blind as of December 31, 2019, you must get a statement certified by your eye doctor (ophthalmologist or optometrist) that: • You can't see better than 20/200 in your better eye with glasses or contact lenses, or • Your field of vision is 20 degrees or less. If your eye condition isn't likely to improve beyond the conditions listed above, you can get a statement certified by your eye doctor (ophthalmologist or optometrist) to this effect instead. You must keep the statement for your records. Married Filing Separately Age/Blindness If you or your spouse (if you are married and filing a joint return) were born before January 2, 1955, or were blind at the end of 2019, 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 2019. If your spouse was born before January 2, 1955, but died in 2019 before reaching age 65, don’t check the box that says “Spouse was born before January 2, 1955.” 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, 1954, and died on February 13, 2019. 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, 2019, your spouse isn't considered age 65. Don’t check the box. Death of taxpayer in 2019. If you are preparing a return for someone who died in 2019, see Pub. 501 before completing the standard deduction information. -15- 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, 1955, or was blind at the end of 2019, 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 also can have $3 go to the fund. If you check a box, your tax or refund won't change. 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 on the right side of page 1 of Form 1040 or 1040-SR (just above the Dependents section) 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 2019 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 2019 return (including extensions). If an ITIN is applied for on or before the due date of a 2019 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 2019, 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 2019 (see Pub. 501) AND Who isn't filing a joint return for 2019 or is filing a joint return for 2019 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 2019. 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 2019, 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. -16- 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 2019 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 for 1040-SR and any this child. Then, go to applicable schedules. Step 3. 4. Did this child have an SSN valid for employment issued before the due date of your 2019 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 in this child. Check the column (4) of the “credit for other Dependents section for dependents” box in this person. column (4) of the Dependents section 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 2019. 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 17 at the end of 2019? 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 for this person. -17- AND Who had gross income of less than $4,200 in 2019. 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 2019. But see Children of divorced or separated parents, Multiple support agreements, and Kidnapped child, later. Need more information or forms? Visit IRS.gov. 1. Does any person meet the conditions to be your qualifying relative? Yes. Continue No. STOP Definitions and Special Rules 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 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. 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. 䊲 䊲 You can't claim this person as a dependent. 3. Was your qualifying relative married? Yes. See Married No. Continue 䊲 person, later. 4. Could you, or your spouse if filing jointly, be claimed as a dependent on someone else's 2019 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. 1040-SR and any Then go to Step 5. applicable schedules. 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 2019 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 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 for this person. Need more information or forms? Visit IRS.gov. 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 2019 (whether or not they are or were married). 2. The child received over half of his or her support for 2019 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 2019. 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 2019, 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 2019. 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 13a and 18b). However, this doesn't allow the noncustodial parent to claim head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, the earned income credit, or the health coverage tax credit. 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 2019. The noncustodial parent is the other parent. If the child was with each parent for an equal number of nights, -18- 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 2019, the person is considered to have lived with you for more than half of 2019 if your home was this person's home for more than half the time he or she was alive in 2019. Any other person is considered to have lived with you for all of 2019 if the person was born or died in 2019 and your home was this person's home for the entire time he or she was alive in 2019. 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 2019, the person can't engage in any substantial gainful activity because of a physical or mental condition and a doctor has determined that this condition has lasted or can be expected to last continuously for at least a year or can be expected to lead to death. 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. Child tax credit and credit for other dependents (line 13a) and additional child tax credit (line 18b). 2. Head of household filing status. 3. Credit for child and dependent care expenses (Schedule 3, line 2). 4. Exclusion for dependent care benefits (Form 2441, Part III). 5. Earned income credit (line 18a). -19- Need more information or forms? Visit IRS.gov. 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 2019. 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 2019. • 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 2019. • 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 2019, 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 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 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 6 and Schedule 1, lines 1 through 8. Also see Pub. 525. Foreign-Source Income You must report unearned income, such as interest, dividends, and pensions, from sources outside the United States 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 2019 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 2019 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 2019 return (including extensions), you can't claim the child tax credit or the credit for other dependents on your original or an amended 2019 return. If you apply for an ITIN on or before the due date of your 2019 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 2019 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. unless exempt by law or a tax treaty. You also must 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. Need more information or forms? Visit IRS.gov. -20- 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 4c and 4d. 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 2019, 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 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 also must 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 usually must follow state law to determine what is community income and what is separate income. For details, see Form 8958 and Pub. 555. Nevada, Washington, and California domestic partners. A registered domestic partner in Nevada, Washington, or California generally must report half the combined community income of the individual and his or her domestic partner. See Form 8958 and Pub. 555. Rounding Off to Whole Dollars You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3. If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total. 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 also must 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 then $2,100 in 2019. If you received wages as a household employee and you didn’t receive a Form W-2 because an employer paid you less than $2,100 in 2019, 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. -21- • 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 8. • 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 2019. • 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 2019 under all plans was more than $19,000 (excluding catch-up contributions as explained later), include the ex- Need more information or forms? Visit IRS.gov. cess on line 1. This limit is (a) $13,000 if you have only SIMPLE plans, or (b) $22,000 for section 403(b) plans if you qualify for the 15-year rule in Pub. 571. Although designated Roth contributions are subject to this limit, don’t include the excess attributable to such contributions on line 1. They already are 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 2019, your employer may have allowed an additional deferral (catch-up contributions) of up to $6,000 ($3,000 for section 401(k)(11) and SIMPLE plans). This additional deferral amount isn't subject to the overall limit on elective deferrals. You can't deduct the amount deferred. It isn't included as 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 4c and 4d. 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 4c and 4d. 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, the “Statutory employee” box in box 13 of your Form W-2 should be checked. Statutory employees include full-time life insurance salespeople and certain agent or commission drivers, traveling salespeople, and homeworkers. If you have related business expenses to deduct, report the amount shown in box 1 of your Form W-2 on Schedule C along with your expenses. Missing or Incorrect Form W-2? Your employer is required to provide or send Form W-2 to you no later than January 31, 2020. 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 still must 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. Need more information or forms? Visit IRS.gov. -22- 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 amortizable bond premium or acquisition premium, see Pub. 550. Interest credited in 2019 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 2019 income. For details, see Pub. 550. If you get a 2019 Form TIP 1099-INT for U.S. savings bond interest that includes amounts you reported before 2019, see Pub. 550. Line 3a Qualified Dividends Enter your total qualified dividends on line 3a. Qualified dividends also are 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 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 which first became a surrogate foreign corporation after December 22, 2017, other than a foreign corporation which 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, 2019. XYZ Corp. paid a cash dividend of 10 cents per share. The ex-dividend date was July 16, 2019. 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, 2019. You held your shares of XYZ Corp. for only 34 days of the 121-day period (from July 9, 2019, through August 11, 2019). The 121-day period began on May 17, 2019 (60 days before the ex-dividend date), and ended on September 14, 2019. 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, 2019 (the day before the ex-dividend date), and you sold the stock on September 16, 2019. You held the stock for 63 days (from July 16, 2019, through September 16, 2019). 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, 2019, through September 14, 2019). Example 3. You bought 10,000 shares of ABC Mutual Fund common stock on July 8, 2019. ABC Mutual Fund paid a cash dividend of 10 cents a share. The ex-dividend date was July 16, 2019. 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, 2019. 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 12a 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. -23- 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 8, only if they exceed the total of all net premiums you paid for the contract. Lines 4a and 4b IRA Distributions Special rules may apply if you TIP received a distribution from your individual retirement arrangement (IRA) and your main home was in one of the federally declared disaster areas eligible for these special rules at any time during the incident period. Special rules may also apply if you received a distribution to buy or construct a main home in one of the federally declared disaster areas eligible for these special rules, but that home wasn't bought or constructed because of the disaster. See Pub. 590-B for details. 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 Need more information or forms? Visit IRS.gov. 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 2020, 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 2019 or an earlier year. If you made nondeductible contributions to these IRAs for 2019, 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. 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 2014 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 2019. 4. You had a 2018 or 2019 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 2019. 6. You recharacterized part or all of a contribution to a Roth IRA as a contribution to another type of IRA, or vice versa. 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 701/2 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 also can have a QCD of up to $100,000.) The amount of the QCD is limited to the amount that would otherwise be included in your income. If your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income. See Pub. 590-A for details. 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. 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. 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 generally can elect to exclude an HFD from your income once in your lifetime. You can't exclude more than the limit on HSA contributions or more than the amount that would otherwise be included in your income. If your IRA includes nondeductible contributions, the HFD is first considered to be paid out of otherwise taxable income. See Pub. 969 for details. ! Need more information or forms? Visit IRS.gov. -24- 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 (a) you received an CAUTION early distribution from your IRA and the total wasn't rolled over, or (b) you were born before July 1, 1948, and received less than the minimum required distribution from your traditional, SEP, and SIMPLE IRAs. See the instructions for Schedule 2, line 6, for details. ! More information. For more information about IRAs, see Pub. 590-A and Pub. 590-B. Lines 4c and 4d Pensions and Annuities Special rules may apply if you TIP received a distribution from a profit-sharing plan or retirement plan and your main home was in one of the federally declared disaster areas eligible for these special rules at any time during the incident period. Special rules may also apply if you received a distribution on certain dates to buy or construct a main home in one of the federally declared disaster areas eligible for these special rules, but that home wasn't bought or constructed because of the disaster. See Pub. 575 for details. 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 4c and 4d. 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 2019. 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 4d; don’t make an entry on line 4c. 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 4c. If your Form 1099-R doesn't show the taxable amount, you must use the General Rule explained in Pub. 939 to figure the taxable part to enter on line 4d. 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 4d. 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 4c and the taxable amount on line 4d. Enter “PSO” next to line 4d. 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. Simplified Method You must use the Simplified Method if either of the following applies. -25- 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. 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 are the beneficiary of an employee who died, see Pub. 575. If there is more than one beneficiary, see Pub. 575 or Pub. 721 to figure each beneficiary's taxable amount. Cost Your cost is generally your net investment in the plan as of the annuity starting date. It doesn't include pre-tax con- Need more information or forms? Visit IRS.gov. Keep for Your Records Simplified Method Worksheet—Lines 4c and 4d 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 4d. Enter the total pension or annuity payments received in 2019 on Form 1040 or 1040-SR, line 4c. 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 4c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 4d. 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 4d . . . . . . . . . . . . . . . . . . . . . . 9. 2. Enter your cost in the plan at the annuity starting date . . . . . . . . . . . . . 2. 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. 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 2019. 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 -26- tributions. Your net investment may be shown in box 9b of Form 1099-R. 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 4c and 4d 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 4c 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 4d. If the remaining amount is zero and you have no other distribution to report on line 4d, enter -0- on line 4d. Also, enter "Rollover" next to line 4d. 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 4c and the taxable part on line 4d. For details, see Pub. 575. 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 5a and 5b 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 2019. 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 2019 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 2019 and your total repayments (box 4) were more than your total benefits for 2019 (box 3). None of your benefits are taxable for 2019. Also, if your total repayments in 2019 exceed your total benefits received in 2019 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 2019? If any of your benefits are taxable for 2019 and they include a lump-sum benefit payment that was for an earlier year, you may be able to reduce the taxable amount. See Lump-Sum Election in Pub. 915 for details. Social security information. Social security beneficiaries can now get a variety of information from the SSA website with a my Social Security account, including getting a replacement Form SSA-1099 if needed. For more informa- -27- tion 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 replacement Form RRB-1099, call the Railroad Retirement Board at 877-772-5772 or go to www.rrb.gov. Line 6 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: Need more information or forms? Visit IRS.gov. Social Security Benefits Worksheet—Lines 5a and 5b Before you begin: 1. 2. 3. 4. 5. 6. 7. Keep for Your Records Figure any write-in adjustments to be entered on the dotted line next to Schedule 1, line 22 (see the instructions for Schedule 1, line 22). If you are married filing separately and you lived apart from your spouse for all of 2019, enter “D” to the right of the word “benefits” on line 5a. If you don’t, you may get a math error notice from the IRS. Be sure you have read the Exception in the line 5a and 5b 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 5a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. Multiply line 1 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Combine the amounts from Form 1040 or 1040-SR, lines 1, 2b, 3b, 4b, 4d, 6, and Schedule 1, line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 10 through 19, plus any write-in adjustments you entered on the dotted line next to Schedule 1, line 22 . . . . . . . . . . . . . . . . . . . . . . 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 5b. Yes. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 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 2019, enter $25,000 ............... • Married filing separately and you lived with your spouse at any time in 2019, 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 5b. If you are married filing separately and you lived apart from your spouse for all of 2019, be sure you entered “D” to the right of the word “benefits” on line 5a. Yes. Subtract line 8 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. 4. 5. 6. 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 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 5b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. TIP If any of your benefits are taxable for 2019 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. -28- • Capital gain distributions; • A capital loss carryover from 2018; • 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 for which 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 6 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 6 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 SchedTIP ule D, use the Qualified Dividends and Capital Gain Tax Worksheet in the line 12a instructions to figure your tax. Total Income and Adjusted Gross Income Line 7a Report any additional income on Schedule 1, lines 1 through 8. Enter the amount from Schedule 1, line 9, on line 7a. Line 7b Total Income Add the amounts from lines 1, 2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income. Line 8a Report any adjustments to income on Schedule 1, lines 10 to 21. Enter the amount from Schedule 1, line 22, on line 8a. Line 8b Adjusted Gross Income Subtract line 8a from line 7b and enter the amount on this line. Tax and Credits Line 9 Itemized Deductions or Standard Deduction In most cases, your federal income tax will be less if you take the larger of your itemized deductions or standard deduction. Itemized Deductions To figure your itemized deductions, fill in Schedule A. Standard Deduction Most Form 1040 filers can find their standard deduction by looking at the amounts listed to the left of line 9. Most Form 1040-SR filers can find their standard deduction by using the chart at the bottom of page 1 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 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, 1955, 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, 1955, or Were Blin [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A9c258937486f59ac. Public record. Not legal advice.