PART 1 — TAX FUNDAMENTALS FOR THE AVERAGE TAXPAYER
Deductions: In General, Medical
Expenses, Taxes, and Interest
LEARNING OBJECTIVES
This chapter was prepared to enable participants to learn
about itemized deductions for medical expenses, taxes,
and interest. More specifically, upon completion, you
will be able to:
Calculate the reduction in itemized deductions for
high-income taxpayers.
Know which items can be deducted as medical
expenses.
Understand which type of interest is deductible.
Determine which taxes are deductible.
NEW THIS YEAR
Limit on itemized deductions. High-income
individuals may suffer a reduction in their itemized
deductions if their adjusted gross income exceeds
$166,800 ($83,400 for married persons filing separate returns). However, only one-third of the amount
of this reduction applies in 2009. See ¶801.
Standard deductions increased. See ¶801.
New standard deduction for sales and excise
taxes on certain vehicle purchases. Buyers with
modified adjusted gross income below set limits can
add these taxes on purchases up to $49,500 to their
standard deduction. See ¶801 and ¶811.
Long-term care insurance. The amount of longterm care insurance premiums treated as a deductible medical expense has been adjusted for inflation.
See ¶808.
Mileage rate for medical travel. The rate has been
fixed at 24¢ per mile for 2009. See ¶803.
Health savings accounts (HSAs). The limit on
deductible contributions increased. See ¶808A.
Student loan interest. The adjusted gross income
limits for this deduction have been increased for
married persons filing jointly. See ¶828A.
¶801
Introduction
The deductions that taxpayers are permitted to take to
reduce their tax fall into two classes:
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Deductions from gross income in computing adjusted
gross income (so-called business deductions). These
are often referred to as “above-the-line” deductions.
Deductions from adjusted gross income.
The following items are deductible from gross income:
All trade, business, or professional expenses (except
those of employees)
Expenses paid or incurred by qualifying performing
artists
Deductible losses from the sale or exchange of property
Expenses attributable to property held for the production of rents and royalties, even though not attributable to a trade or business
Payments into a pension plan for the taxpayer’s own
benefit as a self-employed person and contributions
to an individual retirement account (IRA) (discussed
in Chapter 29)
Alimony payments
Premature withdrawal penalties for early redemption
of a certificate of deposit or other time account
One-half of the self-employment tax
Moving expenses
Health coverage for self-employed persons and morethan-2% S corporation shareholders
Health savings account (HSA) contributions
Archer medical savings account (MSA) contributions
Interest up to $2,500 on student loans
Educator expenses up to $250
Tuition and fees deduction
Domestic production activities deduction (discussed
in Chapter 17)
NOTE: Archer medical savings accounts expired
at the end of 2007 and have not been extended by
Congress, but accounts set up prior to 2008 can still
be funded with deductible contributions.
Whether employees are required to report their business
expenses for travel, entertainment, and the like depends
on their employer’s expense reimbursement policy. If
¶801
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an employer has an accountable plan, then employees
do not have to report their business expenses—they are
reimbursed under the plan, so there is nothing for employees to deduct. An accountable plan is one that requires
employees to substantiate expenses to the employer and
repay any excess advance or reimbursement within a reasonable time. If the employer has a nonaccountable plan
(employees are not required to substantiate expenses to
the employer or to repay excess amounts to the employer),
then the employees’ expenses will be considered unreimbursed. They can deduct these amounts subject to the
2%-of-adjusted-gross-income limit. However, statutory
employees (e.g., certain insurance agents and outside
salespersons) may deduct employee business expenses on
Schedule C and are not limited by the 2% floor.
STUDY QUESTION
1.
Which of the following deductions are taken from
gross income?
a. Student loan interest
b. Mortgage interest
c. Investment interest
EXAMPLE: Jill Gregory is entitled to file a joint return
with her husband, Howard Gregory. However, Howard
elects to file a separate return for 2009 and itemizes
his deductions. Because he itemizes, Jill is not entitled
to claim the standard deduction on her return, but she
must also itemize her deductions, if she has any.
There is an additional standard deduction amount for
taxpayers who are age 65 or older by the end of the year
and/or blind. For 2009, the additional amount is $1,400
for singles and heads-of-household, and $1,100 for
married persons filing a joint or separate return, and for
surviving spouses.
EXAMPLE: In 2009, Jerry Gilbert, a single individual,
age 55, who is blind (and does not own a home), can
claim a standard deduction of $7,100 ($5,700 + $1,400).
A married couple where one spouse is age 66 and
the other is age 64 can claim a standard deduction of
$12,500 ($11,400 + $1,100).
NOTE: Answers to Study Questions, with feedback
to both the correct and incorrect responses, are
provided in Chapter 35, beginning with ¶3508.
Real estate taxes. For 2009, there is an additional standard deduction for real property taxes. The additional
deduction is up to $500 ($1,000 on a joint return).
Items deductible from adjusted gross income include,
but are not limited to, the following:
PLANNING POINTER: The new additional standard
deduction for real property taxes can provide a benefit to seniors who have paid off their homes and do
not have enough itemized expenses to itemize their
deductions. It can also help those who purchase a
home late in the year and also lack enough deductions to itemize.
All allowable employee business expenses not deductible from gross income
Expenses attributable to income-producing activities
not constituting a trade or business (except in connection with rental or royalty-producing property)
All “personal” deductions, such as charitable contributions,
interest, taxes, medical expenses, and casualty losses
NOTE: Certain expenses are taken as miscellaneous
itemized deductions only to the extent they exceed
2% of adjusted gross income. These include, among
others, job-related education costs, expenses for the
production of income, and appraisal costs.
Individuals may elect to itemize
their deductions or to take the standard deduction, whichever is greater. The standard deduction amounts for 2009
are $11,400 on a joint return and for surviving spouses,
$8,350 for heads of households, and $5,700 for singles
and married persons filing separate returns. See ¶116.
Standard deduction.
¶801
Married taxpayers filing separate returns are ineligible
to use the standard deduction if either spouse itemizes.
See ¶116 and ¶205.
State and local sales and excise taxes on certain
vehicle purchases. These taxes on purchases up to
$49,500 can be added to the standard deduction in lieu
of claiming them as part of the itemized deduction for
state and local sales taxes. In states that do not impose
sales tax (Alaska, Delaware, Hawaii, Montana, New
Hampshire, and Oregon), the fees or taxes assessed on
the purchase of the vehicle and based on the vehicle’s
sales price or as a per unit fee can be treated as a sales
or excise tax for purposes of the additional deduction.
However, there is a modified gross income (MAGI)
limit of $125,000 for singles ($250,000 for joint filers); a partial deduction is allowed for MAGI between
$125,000 and $135,000 for singles ($250,000 to
$260,000 for joint filers).
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Instead of claiming a loss incurred
in a federal disaster area as an itemized deduction, the
loss can be treated as an additional standard deduction
amount. Such loss in 2009 must be reduced by $500;
the 10%-of-adjusted gross income floor does not apply
to disaster losses.
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Net disaster losses.
Special rules apply to the standard deduction for dependents. Their standard deduction is limited to the greater
of an annual amount ($950 in 2009), or $300, plus
earned income, but no more than a total of the standard
deduction for a nondependent ($5,700 in 2009).
EXAMPLE: Luke Thrasher, a 16-year-old child,
earns $1,000 from a part-time job and has unearned
income of $500. Luke’s standard deduction amount
is $1,300 (earned income of $1,000 plus $300).
Some of the items to be discussed may also qualify
as deductions if they are incurred in connection with
the taxpayer’s trade or business or other incomeproducing activity.
Overall limit on itemized deductions. Prior to 2006,
itemized deductions were reduced by 3% of the amount
by which adjusted gross income exceeded a threshold
amount. In 2006 and 2007, only two-thirds of the 3%
reduction applied. In 2008 and 2009, only one-third of
the 3% reduction will apply. In 2010, the phaseout will
no longer be in effect. The threshold amount for 2009
is $166,800 ($83,400 for married persons filing separate
returns). The reduction is limited to no more than 80%
of allowable itemized deductions. Certain deductions are
exempt from reduction: medical expenses, investment
interest, casualty and theft losses, and gambling losses
to the extent of gambling winnings.
NEW FOR 2010: Starting in 2010, the overall limitation
on itemized deductions for high-income taxpayers is
completely eliminated.
The “Itemized Deductions Worksheet” from the
instructions to Schedule A, Form 1040, can be used to
figure the reduction in itemized deductions.
MEDICAL EXPENSES (SEC. 213)
¶802
What Expenses Are Deductible?
Taxpayers itemizing their personal deductions may
include, as a deduction from adjusted gross income and
subject to certain limitations and conditions, amounts
paid for medical and dental expenses. The expenses must
have been paid in the tax year, regardless of when the
expenses were incurred.
The Internal Revenue Code defines medical expenses
as amounts paid for “the diagnosis, cure, mitigation,
treatment, prevention of disease, or for the purpose of
affecting any structure or function of the body.”
The cost of cosmetic surgery generally is not deductible. This bar does not apply to cosmetic surgery
necessary to ameliorate a deformity arising from, or
directly related to, a congenital abnormality, a personal
injury resulting from an accident, or trauma, or a
disfiguring disease.
Medical expenses also include expenditures incurred for
transportation primarily for, and essential to, medical care.
PRACTICE POINTER: This reduction does not apply
Unreimbursed long-term care services are treated as
deductible medical expenses. Long-term care services
include necessary diagnostic, preventive, therapeutic,
curing, treating, mitigating, and rehabilitative services,
and maintenance or personal care services required by a
chronically ill individual and provided under a plan of
care prescribed by a licensed health care practitioner. A
chronically ill individual is someone certified within the
prior 12 months as (1) being unable to perform at least
two activities of daily living (eating, toileting, transferring, bathing, dressing, and continence), (2) requiring
substantial supervision to protect the person due to severe
cognitive impairment, or (3) having a similar level of disability according to regulations (not yet prescribed).
for alternative minimum tax purposes. Thus, for
example, charitable contributions are deductible in full
for purposes of the alternative minimum tax without
any reduction, regardless of the amount of adjusted
gross income.
The costs of hospitalization and medical insurance
are deductible. The treatment of medical insurance
is explained in ¶808. The cost of life insurance is not
deductible. The cost of attending special schools or
EXAMPLE: John Pomeroy, a single individual, has
adjusted gross income of $316,800 and itemized
deductions of $90,000 ($20,000 of which are medical
expenses, casualty and theft losses, and investment
interest). The itemized deduction reduction (before
the 2009 phaseout) is $4,500 (3% of $150,000, which
is the amount of AGI exceeding $166,800). For 2009,
the reduction is $1,500 (one-third of $4,500).
¶802
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institutions for the mentally or physically handicapped is
deductible if the resources of the institution for alleviating the handicap are the principal reason for attending
the school. Thus, amounts paid (including payments for
board and lodging) for a blind child to attend a school
where Braille is taught, or for a deaf child to attend a
school for the teaching of lipreading, are deductible.
Purchase or installation of special equipment or devices
of a medical nature or for medical purposes (e.g., ramps
or railings to accommodate a handicap) is deductible,
even though the equipment or devices acquired are of a
capital nature. However, if the equipment or installation
increases the value of the taxpayer’s home, the deduction is reduced by the amount of the increase. Thus, for
instance, the cost of central air conditioners or elevators,
installed for medical reasons, is deductible, but only to
the extent that the items do not add to the permanent
value of the house.
EXAMPLE: On his physician’s advice, Bob Lynn, a heart
patient, installs a home elevator at a cost of $2,500. A
qualified appraisal indicates that the elevator increases
the value of the home by about $1,000. Bob can take
a medical expense deduction of $1,500.
A medically dictated improvement can generate annual medical deductions. To illustrate: operating costs during the year
are $125 for electricity to operate the air conditioner and
$50 for maintenance. This $175 cost is a medical expense.
The rule is that if the improvement is a medical expense, so
are annual outlays for operation and maintenance. Furthermore, the entire amount of these yearly expenses qualifies,
even though none or only part of the original cost of the
improvement gave rise to a medical deduction.
The following items qualify as deductible medical
expenses:
Fees to doctors, osteopathic doctors, dentists, chiropractors, oculists, podiatrists, psychologists, physical therapists,
acupuncturists, and Christian Science practitioners
Hospital, nursing, and laboratory fees
X-rays and therapy treatments
Cost and maintenance of eyeglasses, hearing aids, contact lenses, artificial teeth and limbs, braces and crutches,
wheelchairs, and oxygen equipment
Seeing Eye dogs and Braille books
Orthopedic shoes
The cost of stop-smoking programs (but not overthe-counter treatments such as nicotine gum)
The cost of weight-loss programs to treat obesity
¶803
Organ donor expenses for surgery, hospital stay, lab
fees, and transportation
The following items do not qualify as itemized medical
expenses:
Over-the-counter medications
Funeral and cemetery expenses
Cost of meals and lodging received by an aged person
in an old-age home (except that portion of the cost
representing medical and nursing care)
Maternity clothing
Diaper service
Cost of caring for children while their parent is sick
or recovering from an illness
Amounts paid for the preservation of the taxpayer’s
general health, such as for health clubs, steam baths,
and vacations
Cost of a housekeeper, unless a portion of her time is
devoted to nursing services, in which case a proportionate part of the expense is deductible
Illegal operations or illegal treatment
Social activities (e.g., dancing lessons or swimming
lessons) for the general improvement of health
Cosmetic surgery that is not medically necessary
Marijuana (even if medically prescribed)
Gender reassignment surgery
¶803
Medical Transportation Expenses
If a taxpayer incurs transportation expenses primarily for
and essential to obtaining medical care, these qualify as a
medical deduction. This includes not only the patient’s
transportation expenses but also, where necessary, the
expenses incurred by accompanying persons, such as nurses
or parents of a child too young to travel alone. However,
the taxpayer should be able to prove that the trip was made
on the physician’s advice for the treatment or mitigation of
a specific disease or condition, and not merely for a change
in environment or general improvement of health. Thus, a
person suffering from a heart ailment was not allowed to
deduct the cost of traveling to Florida for the winter.
If taxpayers use their own autos for medical purposes, they
can either deduct the actual cost of gas and oil (but not
depreciation or insurance) or take a flat mileage allowance
of 24 cents per mile in 2009. Expenses incurred for tolls
and parking fees are separately deductible.
¶804
Meals and Lodging
Payment for meals and lodging furnished by a hospital
or similar institution, as a necessary incident to medical
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care, is a medical expense if the patient’s condition is
such that the availability of medical care is the principal
reason for the patient’s presence there.
considered ordinary expenses and nondeductible,
just as food and household expenses are ordinary and
nondeductible.
Amounts paid for lodging (but not meals) while away from
home primarily for and essential to medical care provided
by a doctor in a licensed hospital, including a medical care
facility, will qualify for a medical expense deduction. The
amount is limited to $50 per night per individual. Thus,
for example, if the away-from-home lodging expenses for
a child being treated at a medical care facility qualify as
medical expenses, so too would the lodging expenses of
a parent who accompanies that child. The $50 per night
would apply separately to each of them.
EXAMPLE: Jim Gray’s adjusted gross income is
$28,000. His costs for prescription medicine and
drugs were $1,300, and his costs for other medical
expenses were $2,600. If he itemizes his personal
deductions, he can deduct medical expenses of
$1,800 on Schedule A of Form 1040 ($3,900 medical
expenses less 7.5% of adjusted gross income, or
$2,100). The “Medical and Dental Expenses” section of Schedule A prompts taxpayers to take into
account the 7.5%-of-AGI limitation.
When an individual is in a nursing or old-age home in
order to receive treatment for a mental or physical condition, the entire cost of maintenance, including meals
and lodging, is deductible. On the other hand, if an
individual is in a home primarily for custodial purposes,
only that portion of the maintenance cost attributable
to medical or nursing care is deductible.
Although the cost of transportation incurred for medical reasons is deductible, the cost of meals while away
from home for medical treatment or for the alleviation
of a specific condition is not, even if the trip was made
on a physician’s advice. If a taxpayer with a severe heart
ailment spends every winter in Florida at his doctor’s
insistence, the taxpayer’s transportation to and from
Florida is deductible. The taxpayer’s living expenses en
route or while there are not deductible.
¶805
Medicines and Drugs
Amounts paid for prescription medicines and for insulin
are included in medical expenses. Over-the-counter
drugs, vitamins, iron, and other food supplements are
not deductible, even if ordered by a doctor.
PRACTICE POINTER: Over-the-counter medications
paid through health savings accounts, flexible spending accounts, or health reimbursement accounts are
not deductible, even though they are permissible
plan distributions.
¶806
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PITFALL: For alternative minimum tax purposes,
only medical expenses in excess of 10% of adjusted
gross income are deductible. See ¶2502.
¶807
Whose Medical Expenses Are Deductible?
In computing the medical expense deduction, a taxpayer
can include medical expenses paid for himself and his
spouse and dependents. For this purpose, a person is considered a “dependent,” even though the person’s 2009 gross
income is $3,650 or more or even though the person filed
a joint return with his spouse, provided that the person
meets the other requirements. For a dependent under a
multiple support agreement, only the person entitled to the
dependency exemption can add the dependent’s medical
costs to his own (the other contributors under a multiple
support agreement receive no tax benefit from paying
medical costs for the person claimed as the dependent). The
status must exist either when the expenses were incurred
or when they were paid.
EXAMPLE: Earl Stanton provides $5,000 a year toward
his brother Frank’s support. In addition, he pays Frank’s
dental bill of $350. Frank has 2009 gross income of
$4,900, which he spends for his own support. Although
Earl cannot claim a dependency exemption deduction
for his brother (because the brother’s gross income
exceeds $3,650), he can claim the medical expenses
paid for Frank, because he provided more than half
($5,000 + $350) of Frank’s total support.
Limitations on the Medical
Expense Deduction
In general, medical expenses are deductible only to
the extent that they exceed 7.5% of the taxpayer’s
adjusted gross income. This is because amounts up
to 7.5% of the taxpayer’s adjusted gross income are
¶807
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EXAMPLE: John Adams furnished more than half
PITFALL: The fact that separate returns will yield a
the support of his married daughter, Mary, including
her medical expenses of $1,200. Mary and her husband file a joint return. For this reason, John cannot
claim an exemption for her. In computing his medical
expenses, however, John may include the $1,200
medical expenses paid for Mary.
greater medical deduction does not necessarily mean
that they will result in less tax. A joint return, because
of lower tax rates, may still produce a lower tax. Therefore, the only way one can be certain of filing the most
advantageous return in such a situation is by computing the actual tax liability both separately and jointly.
PRACTICE POINTER: A child of divorced parents who is
It should be understood that the 7.5% reduction is taken
only once on each return, regardless of the number of
individuals for whom a medical deduction is claimed.
subject to the special dependency exemption rules (¶309)
is treated as the dependent of both spouses for purposes
of the rules relating to medical expenses and medical
reimbursements. Thus, the spouse not entitled to the
exemption for a child may nevertheless claim a deduction
for medical expenses paid by him for that child.
Married couples may find it beneficial to file separate
returns in order to claim a larger medical deduction.
EXAMPLE: Sidney Green, during the year, paid the
following unreimbursed medical and dental expenses:
$1,110 for himself; $800 for his wife, Evelyn; $350 for his
child; and $1,450 for his mother (who qualifies as Sidney’s dependent). Sidney and his wife file a joint return
on which they report adjusted gross income of $45,000.
On Schedule A, Sidney can deduct $335 ($3,710 of
medical expenses minus $3,375 [7.5% of AGI]).
EXAMPLE: Assume that Sidney and Evelyn Green,
in the previous example, file separate returns instead
of a joint return. Sidney’s adjusted gross income is
$22,000, and he claims the exemption for both dependents. Evelyn’s adjusted gross income is $23,000,
and she claims only her own exemption. The medical
deduction of each will be computed as follows:
Sidney’s Return
Sidney’s, his child’s, and his
mother’s medical expenses
($1,110 + $350 + $1,450)
Less: 7.5% of AGI. . . . . . . . . . . . .
Medical Insurance Premiums
The cost of hospitalization and medical insurance
(including Medicare Part B) is deductible as a medical
expense. The cost of accident and health insurance policies
may be partly deductible. Such policies typically provide
for reimbursement not only of hospitalization, doctors’
bills, and other medical expenses but also for loss of
earnings and for loss of life, sight, or limbs. Because only
the medical expense portion of the premiums is deductible, a deduction can be claimed only if the insurance
company clearly allocates what portion of the premium
is for medical or other nonmedical benefits. If such an
allocation is made, the medical portion is deductible; if
no allocation is made by the company, no part of the
premium is deductible.
Examples of other deductible medical insurance premiums include:
Contact lens replacement insurance
Medigap (supplemental Medicare insurance)
Premiums under Medicare Part D (drug benefits)
Student health fee
PLANNING POINTER: There is a surtax on Medicare
Part B premiums in 2009, based on modified adjusted
gross income in 2007. For 2009, instead of the usual
$96.40 per month premium, it can be as high as
$308.30 per month, depending on MAGI and tax-filing
status. In view of this surtax, MAGI planning saves not
only taxes but also Medicare premium costs. Even
those who are not currently on Medicare should plan;
those who will begin in 2011 will pay premiums based
on 2009 MAGI.
$2,910
1,650
Total medical deduction
on Sidney’s return . . . . . . . . . . $1,260
Evelyn’s Return
Evelyn’s medical and
dental expenses . . . . . . . . . . . . . .
800
Less: 7.5% of AGI. . . . . . . . . . . . .
1,725
Total medical deduction
on Evelyn’s return . . . . . . . . . . .
$0
Total deduction on separate return . . . . . . . . . . . . . $1,260
Total deduction on joint return . . . . . . . . . . . . . . . .
¶808
¶808
$335
Long-term care insurance is treated as medical coverage
for purposes of deducting health insurance premiums.
However, the deductible portion in 2009 is subject to
the following limitation based on the taxpayer’s age:
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Age Before the Close of the Tax Year
Limitation
40 or under
$ 320
41–50
600
51–60
1,190
61–70
3,180
Over 70
3,980
Health savings accounts (HSAs). Individuals who have
“high-deductible health plans” (medical insurance requiring
certain out-of-pocket payments before coverage starts) can
contribute to savings-type accounts to cover uninsured medical costs. Funds in the account can be withdrawn tax-free for
medical costs. For more details on HSAs, see ¶808A.
Small
employers and self-employed individuals can set up these
health plans, which are similar to HSAs. See ¶808B.
Archer medical savings accounts (MSAs).
NOTE: After 2007, no new Archer MSAs may be
established, but contributions to existing Archer
MSAs may continue (nonactive employees of participating employers would also be eligible for an
Archer MSA contribution). Thus, for those with existing accounts, self-employed individuals and small
businesses with high-deductible health plans can
continue to contribute to these accounts. Contributions can be made by employers or by employees.
Special deduction for self-employed individuals. Selfemployed individuals and more-than-2% S corporation
shareholders can claim their health insurance premiums as a
deduction from gross income. This deduction is not limited
by 7.5% of adjusted gross income. To claim this special
deduction, neither the taxpayer nor the taxpayer’s spouse
must be eligible to receive medical coverage from an employer.
This determination is made on a month-by-month basis.
For sole proprietors, the deduction is allowed whether
the policy is purchased in the business name or the proprietor’s own name, as long as there is sufficient income
from the business to at least equal the premium. For
more-than-2% S corporation shareholders, the abovethe-line deduction is allowed only if the corporation
purchases the policy (if the shareholders buy the policy,
they can deduct the premium only as an itemized medical
deduction subject to the 7.5%-of-AGI limit).
Certain displaced workers and retirees may qualify for a
health care tax credit of 65% of premiums. See ¶1107A.
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STUDY QUESTION
2.
When itemizing deductions, medical expenses are
deductible to the extent that they exceed what
percentage of AGI?
a. 2.0%
b. 7.5%
c. 10%
¶808A Health Savings Accounts (HSAs)
(Sec. 223)
A health savings account (HSA) combines a highdeductible (low-cost) medical policy with a savings-type
account.
PRACTICE POINTER: Individuals covered by MSAs
can continue to fund their savings accounts. Alternatively, they can roll the funds over to HSAs; they
can continue to fund these new accounts if they meet
current eligibility requirements.
Taxpayers must be covered by a highdeductible medical insurance plan. This is defined in
2009 as follows:
Eligibility.
Coverage Type
Minimum
Deductible
Maximum
Out-of-Pocket Limitation
Individual
$1,150
$5,800
Family
$2,300
$11,600
Taxpayers cannot be covered by any other health plan,
including Medicare. However, taxpayers are eligible for
HSAs even if they have coverage for long-term care, dental care, vision care, accident insurance, disability, workers’ compensation, and disease-specific coverage (e.g.,
cancer insurance). Eligibility is determined on a monthto-month basis, on the first day of each month.
Contribution limits. Contributions for those with selfonly plans are $3,000, or $5,950 for family coverage.
Those age 55 or older by the end of the year can increase
their annual contribution limit by $1,000.
LOOKING AHEAD: In 2010, the basic annual contribution limit will be $3,050 for self-only coverage
and $6,150 for family coverage; again, these limits
can be increased by $1,000 for those 55 and older
by the end of 2010.
Contributions within the above limits made by an
employer on behalf of an employee are not taxable to
the employee. Contributions made by the taxpayer on
¶808A
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his own behalf are deductible from gross income (i.e.,
they are not treated as itemized deductions).
For 2009 contributions to be
deductible, they must be made no later than April 15,
2010. The deduction for contributions to HSAs is
claimed as an adjustment to gross income on page 1
of Form 1040 (so it is deductible even if other medical
expenses are not itemized).
Claiming deductions.
PRACTICE POINTER: Contributions to HSAs can be
made via a direct deposit of a tax refund. For example,
if Ed files his 2009 income tax return in February 2010,
after which it reports a $1,000 tax refund, he can have
that refund deposited into his HSA for 2009 (or for
2010). If using the refund for a prior year contribution (e.g., 2009 in this situation), be sure the return is
filed early enough to give the IRS time to make the
transfer.
Treatment of distributions. Withdrawals from HSAs to
pay for qualified medical expenses (those expenses that
would be deductible as an itemized deduction if not reimbursed by insurance as well as over-the-counter medications) are tax-free. However, distributions cannot be used
to pay for health insurance (other than COBRA coverage,
long-term care insurance, or a Medigap policy).
Distributions for nonmedical purposes are taxed. There
is a 10% penalty unless the taxpayer is age 65 or over,
is disabled, or dies.
Transfers of HSAs incident to divorce are not treated as
a taxable event.
Funds remaining in an HSA at death can be transferred
tax-free to the surviving spouse if such person is the
designated beneficiary of the account.
¶808B Archer Medical Savings Accounts
(MSAs) (Sec. 220)
Taxpayers with Archer Medical Savings Accounts can contribute limited amounts to special savings accounts (similar
to HSAs). While 2007 was the last year in which an Archer
MSA could be established, contributions may still be made
to existing accounts after 2007.
A high-deductible health plan for purposes of Archer MSAs
is defined as follows:
¶808B
Coverage Type
Minimum/Maximum
Deductible
Maximum
Out-of-Pocket
Limitation
Individual
$2,000/$3,000
$4,000
Family
$4,000/$6,050
$7,350
Contributions for those with individual coverage are
limited to 65% of the deductible (75% of the deductible
for family coverage). As with HSAs, contributions for
2009 can be made through April 15, 2010.
Treatment of distributions. Withdrawals
from Archer
MSAs to pay qualified medical expenses are tax-free.
Distributions for nonmedical purposes are taxable and
subject to a 15% penalty unless age 65 or older or disabled (or on account of death).
¶809
Reimbursement of Medical Expenses
The total medical expense deduction for the year must be
reduced by any reimbursement received from insurance
or other sources during the year, including basic Medicare
benefits and supplementary Medicare benefits, whether
paid directly to the taxpayer or to the provider of the services. But amounts received for loss of earnings or damages
for injuries are not considered as reimbursements.
EXAMPLE: Seth Myer’s total medical expenses for
the year came to $600. His insurance company paid
him $125 for doctor bills and $700 for loss of earnings
while he was ill. His total deductible medical expenses
for the year (before the 7.5% reduction) are $475 ($600
– $125). The reimbursement for loss of earnings is disregarded for calculating the medical expense deduction.
If, as often happens, medical expenses are paid in
one year but reimbursement is not received until a
later year, the expenses are deductible in the year paid.
However, the reimbursement must be included in gross
income in the year received. Such income is reported as
“other income” on page 1 of Form 1040. If no medical expense deduction was taken in a previous year, the
reimbursement is tax-free and need not be reported.
If a reimbursement from insurance exceeds the total medical expenses, the excess reimbursement may or may not be
taxable, depending on who paid for the policy. If the taxpayer paid the premiums for the insurance policy, the excess
reimbursement is tax-free and need not be included in gross
income. If the taxpayer’s employer paid the premiums, the
excess reimbursement is taxable. If both the taxpayer and
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the employer paid the premiums, the excess reimbursement
is taxable in the same proportion. Thus, when the employer
and the employee each pay half of the premium, one-half
of the excess reimbursement is taxable.
¶810
89
(To Be Filed with Form 1040 IN DUPLICATE)
Name ______________________________ I.D. # _________
Address ____________________________
City, State ___________________________ Year __________
Medical Expenses of a Decedent
WAIVER OF ESTATE TAX DEDUCTION
Expenses paid from a decedent’s estate for his medical care are treated as paid by the decedent in the year
incurred if they are paid within one year after the decedent’s death and are not deducted in computing his
taxable estate for federal estate tax purposes.
Pursuant to Section 213(c) of the Internal Revenue Code
of 1986, the fiduciary states that, to the best of his/her
knowledge and belief, medical expenses amounting to
$__________ claimed as a deduction on the attached return
have not been allowed as a deduction under Section 2053 of
the Code in computing the taxable estate for the purpose of
the estate tax imposed by Section 2001 of said Code.
EXAMPLE: John Smith, who filed his return on a
The fiduciary hereby waives any and all right to have the
foregoing item allowed at any time as a deduction under
Section 2053.
calendar-year basis, died on June 1, 2009, after
having incurred $8,000 in medical expenses. $5,000
of that amount was incurred during 2008, and the
balance of $3,000 was incurred in 2009. The decedent
filed his 2007 tax return on April 15, 2009. John’s
executor paid off the entire $8,000 liability in August
2009. The executor may file an amended return for
2008 claiming the $5,000 in medical expenses as
a deduction, thus securing a refund resulting from
the increase in the decedent’s 2008 deductions.
The $3,000 of expenses incurred in 2009 may be
deducted on the final return.
TAXES (SECS. 164 AND 275)
¶811
Introduction
Unlike medical expenses, which are deductible only from
adjusted gross income as an “above-the-line” deduction,
taxes may be deductible either from gross income as
an “above-the-line” deduction or from adjusted gross
income as an itemized deduction.
PRACTICE POINTER: As the estate tax exemption
Real estate taxes. For 2008 and 2009, real estate taxes
increases in the coming years, estates may no longer
be subject to estate tax, so there will be no need to
waive the right to deduct medical expenses for estate
tax purposes in order to deduct them on the decedent’s
final income tax return. For decedents still subject to
estate tax, the executor must weigh the tax savings
on the income tax return against that on the estate tax
return. Remember that there is no AGI limit on medical
expenses deducted on an estate tax return.
can be claimed as an additional standard deduction up
to $500 ($1,000 for a married persons filing jointly) by
taxpayers who do not itemize their deductions.
State and local sales and excise taxes on certain
vehicle purchases. For purchases on or after Febru-
ary 17, 2009, and before January 1, 2010, these taxes
on purchases up to $49,500 can be treated as an additional standard deduction instead of itemizing them.
See ¶801.
A copy of a waiver of the estate tax deduction follows:
Schedule A is used for claiming deductible taxes that are
not deducted elsewhere on the return.
Taxes You
Paid
(See
page A-2.)
s
a
9
t
0
f
0
a
2
r
/
D /11
8
5 State and local (check only one box):
a
Income taxes, or
. . . .
b
General sales taxes
6 Real estate taxes (see page A-5) . . .
7 New motor vehicle taxes from line 11 of
back. Skip this line if you checked box 5b
8 Other taxes. List type and amount .
.
.
.
.
5
.
6
. . . . . .
the worksheet on
. . . . . .
7
8
9 Add lines 5 through 8 .
.
.
.
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.
.
.
.
.
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9
¶811
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¶812
Which Taxes Are Deductible?
Unless expressly made nondeductible (¶815), federal,
state, and local taxes incurred in the operation of a
business or charged against property used in business
are deducted from gross income together with other
business deductions on Schedule C (or Schedule F, for
farmers). If the above taxes are incurred as to operating
and maintaining property producing rents and royalties,
they may be deducted on Schedule E, Form 1040.
The same taxes are also deductible if they were paid (or
accrued) as to other income-producing activities or property, but only as a deduction from adjusted gross income,
if the itemized method is used. They are deducted on
Schedule A of Form 1040. Federal income taxes, however, are never deductible and will qualify neither as a
business expense nor as a personal deduction.
The following personal taxes are deductible from
adjusted gross income:
State and local income taxes
Foreign income taxes
claimed (¶814). For certain vehicle purchases in 2009,
state and local sales and excise taxes can also be treated
as an additional standard deduction amount (¶801) if
no itemized deduction is claimed for them. If the additional standard deduction is not claimed, the taxes can
be added to the sales tax amount found in the IRS table
or claimed separately as an itemized deduction on line
7 of Schedule A (subject to limits in ¶801).
The amount of the state and local general sales tax deduction is based on the state of residence and number of
people in the household. The deduction is taken from
an IRS table. To this amount is added any sales tax paid
on big-ticket items, such as a car, boat, or mobile home.
Those who live in more than one state during the year are
required to allocate the deduction amount in the table
according to the number of days in each state.
NOTE: The itemized deduction for state and local
sales tax expires after 2009, unless Congress
chooses to extend it.
¶814
NOTE: Instead of claiming an itemized deduction for
foreign taxes, a foreign tax credit may be allowed.
See ¶1115.
State, local, and foreign real estate and personal
property taxes
State stamp and documentary taxes (in connection
with income-producing property only)
Also deductible are employee contributions to state disability or unemployment funds in California, New Jersey,
New York, Rhode Island, and West Virginia.
The following personal taxes are deductible from gross
income (as an adjustment to gross income or as an additional standard deduction amount:
One-half of self-employment tax. See ¶801 and
¶2607
Real estate taxes up to $500 ($1,000 on a joint
return).
State and local sales and excise taxes paid on certain
vehicle purchases in 2009. See ¶801.
¶813
A common error made in preparing returns relates to
the deduction for state income taxes. The amount of
state and local taxes withheld is frequently overlooked,
or the incorrect state estimated income tax paid is used
in determining the state income tax deduction.
EXAMPLE: For 2009, a taxpayer deducts state
income taxes withheld, plus any state estimated
taxes paid in 2009, plus the additional state income
tax on 2008 income paid in 2009, plus any deficiencies for prior years paid in 2009.
If a state tax refund is received in 2009, it is excluded
to the extent that the earlier deduction did not reduce
the tax in the year in which the tax was deducted. See
¶713. It is not applied against the current year’s itemized
deductions. The refund is reported on the 2009 return
on page 1 of Form 1040 line 10.
PRACTICE POINTER: If a refund of state income tax
is reported as income on the 2009 return, it is treated
as a reduction to income for alternative minimum tax
purposes.
Sales Taxes
For 2008 and 2009, individuals are allowed to claim an
itemized deduction for state and local general sales taxes
if no itemized deduction for state and local income tax is
¶812
State and Local Income Taxes
PITFALL: A refund is not reported as income if the taxpayer did not itemize in the year the taxes were paid.
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¶817
91
Real Estate Taxes
NOTE: Taxpayers who received a refund may receive
Form 1099-G showing the amount.
¶815
Nondeductible Taxes
State and local cigarette, tobacco, gasoline, and alcoholic
beverage taxes are not deductible. In addition, none of
the following items are deductible:
Social Security taxes paid by the employee
Federal and state estate, inheritance, and gift taxes
Motor vehicle registration fees (see ¶816)
Dog tag fees, hunting and fishing licenses, driver’s
license fees, federal excise and stamp taxes, and customs
duty, unless any of these are incurred as expenses in
carrying on a trade or business
The portion of Social Security tax paid by the employer
is deductible as a business expense. Federal unemployment insurance is paid by the employer and is, therefore, deductible by the employer. Contributions to
state unemployment insurance funds are deductible by
employers and (in states requiring employee contributions) by the employees.
¶816
Personal Property Taxes
State and local (but not foreign) personal property taxes
are deductible if they are ad valorem (i.e., based on the
value of the personal property).
EXAMPLE: Iowa imposes a motor vehicle registration tax
of 1% of value, plus 40¢ per hundredweight. A taxpayer’s
automobile is valued at $2,000 and weighs 3,500 pounds,
and he therefore pays an annual registration tax of $34
(1% of $2,000 = $20, + 35 x $.40 = $14). The $20 portion,
which is based on the value, is deductible. The balance,
which is based on the auto’s weight, is not deductible
unless incurred in connection with the taxpayer’s trade,
business, or other income-producing activities.
From the foregoing, we see that the specific deduction the
law permits for personal taxes applies only to state and local
taxes, not to federal taxes. Federal personal property taxes
are deductible only if they qualify as a business expense or
as an expense incurred in other income-producing activities.
Moreover, state and local levies are deductible only if they
are classified as a tax, not as regulatory or service fees. Thus,
charges for government services, such as water and sewers,
are not a true tax, but merely payment for services rendered.
As such, they are not deductible. (These charges, of course,
will be deductible if they qualify as business expenses.)
Taxes on a home or vacation property generally are deductible as itemized deductions. There is no dollar limit or any
restriction on the number of homes for which real estate
taxes can be deductible.
For 2009, those who do not itemize deductions can deduct
real estate taxes up to $500 ($1,000 on a joint return) as an
additional standard deduction amount. See ¶811.
If real estate is sold, the deduction
for real estate taxes must be apportioned between the buyer
and the seller, according to the number of days in the real
property tax year that each held the property. The taxes
are apportioned to the seller up to the date of sale and to
the buyer beginning with the date of sale. A settlement
statement usually reflects the apportionment. If the buyer
pays delinquent back taxes imposed upon the seller, such
payments may not be deducted by the buyer but must be
added to the cost of the property.
Sale of real estate.
PRACTICE POINTER: The closing statement for the
sale generally lists the apportionment of taxes.
¶818
Who May Deduct Taxes?
All taxes are deductible only by the person on whom they
are imposed. Thus, taxes paid by a parent on a child’s
property are deductible neither by the parent (they were
not the parent’s obligation) nor by the child (because the
child did not pay them). If taxes are paid by a tenant, as
part of the rental arrangement, for his landlord on business property, they will be deductible by the tenant, not
as a tax expense, but as additional rent (provided that the
rent is deductible). Then the tax would be deductible
by the landlord.
Tenant-stockholders in a cooperative apartment house or
home development can deduct a pro rata portion of their
carrying charges as real property taxes. See also ¶822.
¶819
Foreign Income Taxes (Sec. 901)
A taxpayer who has reportable income from foreign
sources on which income taxes to a foreign country
have been paid may claim a credit (as explained in
¶1115). Instead of claiming the foreign tax credit on
Form 1116, a taxpayer may elect to deduct the amount
of such taxes on Schedule A along with his other itemized deductions.
¶819
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PRACTICE POINTER: Individuals who are subject to
the alternative minimum tax should consider claiming the foreign tax credit rather than deducting such
expenses. This is because the deduction will reduce
regular income taxes, thereby increasing alternative
minimum tax, whereas the foreign tax credit can be
used to reduce the alternative minimum tax.
INTEREST (SEC. 163)
¶820
What Interest Is Deductible?
A taxpayer may deduct interest paid (if on the cash basis)
or accrued (if on the accrual basis) on a debt, provided
that he is legally obligated to pay the debt and there is no
tax rule specifically barring the deduction. Interest paid
on another person’s debt is not deductible by the person
who paid it because that person had no legal obligation
to do so; the payment is treated as a gift to the debtor
and is not deductible in this case by either party.
EXAMPLE: Elliot Anderson’s brother Steve owned a
home. Because Steve was in financial difficulties, Elliot
made the mortgage payment. No deduction is allowed
to either Elliot or Steve. Steve did not make the payment and Elliot, who made the payment, had no legal
liability to do so.
PRACTICE POINTER: In the above example, Elliot
should make a gift to his brother. If Steve then pays
the interest, he can claim a deduction.
The same is true where a husband and wife file separate returns and one spouse pays interest on the other’s
indebtedness.
No deduction is allowed for personal interest paid during
the year (other than home mortgage interest and student
loan interest within limits described below).
Personal interest includes interest paid on car loans, credit
cards, life insurance policy loans, and other personal loans.
Interest paid to the IRS. Interest on tax deficiencies
generally is treated as nondeductible personal interest.
This includes interest on tax deficiencies related to
Schedules C, E, or F.
PITFALL: Interest on loans from 401(k) plans generally is nondeductible.
¶820
Mortgage interest on a principal residence or second
home is not subject to the personal interest limitation
where the interest on the loan is treated as “qualified
residence interest.” See ¶822.
Investment interest is deductible, subject to limitation.
The amount of investment interest that is currently
deductible cannot exceed the amount of investment
income for the year. Investment interest in excess of
investment income for any given year is carried over into
the next tax year. See ¶827.
Interest on student loans may be deductible, within
limits. See ¶827A.
Also, interest incurred to acquire an interest in a passive activity is subject to the passive loss limitation rules. See ¶709.
The character of interest—as business interest, personal
interest, investment interest, or passive activity interest—
is determined by how loan proceeds are used and not by
the type of collateral used for the loan. By “tracing” the
proceeds, the character of the interest is established. The
only exception is qualified residence interest. In that case,
interest on the loan is deductible, regardless of how the
proceeds are used. For example, interest on a home equity
loan of $50,000 is fully deductible (assuming the interest
is qualified residence interest), even though the proceeds
are used to pay for a child’s wedding, which is a personal
expense.
Individuals with outstanding personal loans can convert
nondeductible interest into deductible interest if they
consolidate those loans into a home equity loan. Not
only will the interest be deductible (assuming the home
equity loan satisfies the requirements in ¶822), but interest rates also generally are more favorable on home equity
loans than on other types of personal loans.
¶821
Where to Deduct
Interest, like taxes, may be deductible from gross income or
from adjusted gross income. If the interest paid is in connection with a taxpayer’s business, rental property, or traveling
expenses (such as interest payments on automobiles used
for business travel), it is an above-the-line deduction and,
therefore, deductible from gross income in computing
adjusted gross income. If the interest is paid in connection
with nonbusiness activities, such as investment properties
or on home loans, it is a deduction from adjusted gross
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income—if personal deductions are itemized.
Whether the interest is a business or a nonbusiness expense
depends on the use of the money borrowed, not on the
kind of property used to secure the loan. Thus, interest
on loans used to buy merchandise is deducted from gross
income (on Schedule C), even though the loan was secured
by a mortgage on the taxpayer’s private residence.
93
PRACTICE POINTER: It is necessary for the borrower
to directly pay points to the lender. This requirement is
met where an amount is provided by the borrower (such
as a down payment, escrow deposits, earnest money
applied at closing, and funds actually paid at closing).
For purposes of this requirement, an amount charged
to the seller as points on the acquisition of a principal
residence is treated as paid directly by the borrower.
1
/
8
0
Schedule A is used for claiming interest deductible from
Interest
You Paid
(See
page A-5.)
Note.
Personal
interest is
not
deductible.
10 Home mortgage interest and points reported to you on Form 1098
11
12 Points not reported to you on Form 1098. See page A-6 for
special rules . . . . . . . . . . . . . . . .
13 Qualified mortgage insurance premiums (see page A-6) .
14 Investment interest. Attach Form 4952 if required. (See page A-6.)
15 Add lines 10 through 14 . . . . . . . . . . . . .
adjusted gross income.
¶822
10
11 Home mortgage interest not reported to you on Form 1098. If
paid to the person from whom you bought the home, see page
A-6 and show that person’s name, identifying no., and address Interest on Mortgages
[Secs. 163 and 461(g)]
Monthly mortgage payments normally consist of both interest and repayment of the loan principal. However, only the
interest portion is deductible. Banks and savings and loan
associations usually furnish a statement, either every month
or at year-end, showing the total amount of interest paid.
Home owners deducting interest on
seller-financed mortgages must report the seller’s taxpayer identification number.
Seller financing.
Points. So-called points paid to banks and savings and loan
associations, in order to obtain a mortgage for the purchase,
construction, or substantial improvement of a principal
residence, are deductible as interest in the year paid (unless
the deduction causes a material distortion of income).
The charge must have been incurred for the use of the
money, not to reimburse the lender for credit investigation,
appraisal, and other costs incurred in granting the loan.
Further, the points must not exceed the amount of points
generally charged in the area, and the charging of points
must be an established business practice in the area.
12
13
14
. .
.
.
.
.
.
.
15
As a matter of administrative practice, points paid in
connection with the purchase of a principal residence are
deductible by a taxpayer in the year paid if the following
conditions are met:
The Unified Settlement Statement (HUD-1) identifies amounts as points incurred in connection with
the indebtedness (e.g., loan origination fees, loan
discount fees, discount points, or points).
Amounts are computed as a percentage of the stated
principal loan amount.
Amounts paid conform to an established business
practice of charging points for personal residence
loans in the area, and the amount charged does not
exceed the amount generally charged in the area.
Amounts are paid in connection with the acquisition of
the taxpayer’s principal residence that secures the loan.
The amounts are paid directly by the taxpayer.
PRACTICE POINTER: Taxpayers can opt to amortize
points over the life of their home mortgage rather than
deduct them in full in the year of the payment. This option
should be used where they do not have sufficient itemized
deductions to benefit from the points write-off in the year of
payment but may be able to itemize in the coming years.
Loan origination fees paid by a buyer with regard to a
VA or FHA loan may be treated as deductible points,
but such fees paid by a seller may not.
¶822
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Points paid to obtain a loan for the purchase of a principal residence are reported on Form 1098.
Generally, points paid to refinance a mortgage, regardless of
how the taxpayer arranges to pay them, are not deductible in
full in the year paid unless they are paid in connection with
the purchase or improvement of a home. This is true even
if the new mortgage is secured by the taxpayer’s principal
residence. In this case, points are deductible ratably over
the term of the mortgage. However, one appeals court has
allowed a current deduction in a refinancing of a short-term
mortgage where the refinancing was viewed as an integral
step in the overall financing of the home purchase.
Acquisition debt. This
is any debt incurred in acquiring, building, or substantially improving any qualified
residence (principal or secondary residence) of the taxpayer. The total amount of acquisition debt giving rise
to deductible residence interest is $1 million ($500,000
for married persons filing separately).
Home equity debt. This is any debt (other than acquisition
debt) secured by the principal or second home to the extent
the total debt does not exceed the home’s fair market value
reduced by its acquisition debt. This debt cannot exceed
$100,000 ($50,000 for married persons filing separately).
NOTE: The overall debt cannot exceed $1,100,000
PRACTICE POINTER: Any undeducted points can be
($550,000 for married persons filing separately).
deducted in full in the year the property is disposed
of or the mortgage is refinanced with a new lender.
Tenant-stockholders in a cooperative apartment house
can deduct their portion of interest payments on the
indebtedness of the cooperative. They can also deduct
their share of the real estate taxes on the building.
EXAMPLE: Fred Garcia owns and occupies an apartment in a cooperative project. His yearly carrying
charges amount to $2,100, of which $850 represents
his share of the interest on the building mortgage, and
$625 is his share of real estate taxes on the building.
These two items are deductible on Fred’s return as
interest and taxes, respectively.
NOTE: Certain taxpayers may be entitled to a mortgage interest credit. See ¶1115.
A cooperative housing corporation that charges
tenant-stockholders with part of the cooperative’s interest
and taxes in a manner that reasonably reflects the cost to
the cooperative of the interest and taxes allocable to each
tenant-stockholder’s dwelling unit can elect to have the
tenant-stockholder deduct the separately allocated amounts.
Prepayment penalties imposed for the privilege of prepaying a mortgage have been treated as deductible interest. In contrast, bank charges imposed on delinquent
payments that are not tied to the period of delinquency
are treated as nondeductible service charges.
Only qualified mortgage interest is deductible. In
defining qualified residence interest, a distinction is
made between acquisition indebtedness and home equity
indebtedness.
¶822
PITFALL: Interest on home equity debt used for any
purpose other than home improvements is subject
to alternative minimum tax.
Pre-October 14, 1987, debt is not subject to the $1
million limit. However, this debt reduces the $1 million
limit on new acquisition debt. Pre-October 14, 1987,
debt is debt incurred before October 14, 1987, that is
secured by a qualified residence on that date and at all
times thereafter.
If a home owner refinances a mortgage that
is acquisition debt, the treatment of the interest on the new
loan may or may not be fully deductible. If the new loan simply replaces the old loan, the new loan is treated as acquisition
debt and the interest is fully deductible as such. If the new
loan amount is greater than the outstanding balance of the
old loan, it is treated as acquisition debt only if the proceeds
are used to substantially improve the home. Otherwise, the
excess is treated as home equity debt, which is subject to the
$100,000 limit (i.e., interest on home equity debt in excess
of $100,000 is nondeductible). The treatment of points on
refinancing is discussed earlier in this section.
Refinancing.
Mortgage insurance. If a home buyer pays less than 20% of
the purchase price, lenders typically require mortgage insurance (MI). Such insurance is issued by private lenders, as well
as government agencies (Veterans Administration, Federal
Housing Administration, and Rural Housing Administration). For mortgage insurance obtained in 2007 through
2010, the premium is deductible as interest. However, there
is an income limit for this deduction. The full premium
can be deducted only if the home owner’s AGI does not
exceed $100,000. The deduction is reduced by 10% for
each $1,000 of AGI in excess of $100,000; no deduction
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can be claimed once AGI exceeds $110,000. The AGI limit
for married persons filing separate returns is $55,000, with
a 10% reduction for each $500 of excess AGI.
NOTE: The deduction for mortgage insurance is set
to run only through 2010 unless Congress extends
this break.
STUDY QUESTIONS
3.
Which of the following taxes are not deductible
from adjusted gross income?
a. State income tax
b. Local property tax
c. Social Security taxes paid by the employee
4.
Which of the following interest payments are
deductible?
a. Interest on a tax deficiency arising from
Schedule C
b. Points paid to acquire a principal residence
c. Interest on a loan used to buy tax-exempt
securities
5.
In early 2009, Ed and Jan Brown “trade up” to
a larger home. They take out a mortgage for
$300,000. In late November, they need a new
roof and take out a home equity loan of $50,000,
$25,000 of which is used for the roof. In figuring
deductible mortgage interest, how much of the
loan amount(s) is taken into account?
a. $300,000
b. $325,000
c. $350,000
¶823
Discount on Notes and Bank Loans
When a taxpayer borrows money from a bank, the interest is usually deducted or “discounted” in advance. The
discount is deductible as interest when actually paid (or
accrued), not when the note was signed.
95
EXAMPLE: Rachel Adams borrows money from her
bank on June 20, agreeing to pay it back in 12 equal
installments, beginning July 20. She signs a note for
$1,000, but because the note is discounted in advance
at 18%, she actually receives only $820. If she uses
the cash method, the discount of $180 is considered
as being repaid in 12 equal installments of $15 each.
Thus, if Rachel pays before the end of the year all six
payments due in the current year, she can deduct $90
(6 x $15). If Rachel is on the accrual basis, she can
deduct $90 (6/12 x $180) for accrued interest, regardless of whether she made all payments.
¶824
Interest Paid to Produce Tax-Exempt
Income (Sec. 265)
If a taxpayer borrows money to buy or carry tax-exempt
securities, the interest is not deductible.
EXAMPLE: James West borrowed $10,000 at 9%
to purchase $5,000 worth of corporate stock and
$5,000 worth of municipal bonds. Only one-half of
the interest paid is deductible because the income
from municipal bonds is tax-exempt.
The disallowance of an interest deduction applies to
costs incurred to carry personal property used in a short
sale (¶1612).
¶825
Amortization of Bond Premiums
(Sec. 171)
If a taxpayer paid a premium in acquiring taxable bonds,
the taxpayer may, at his option, amortize the premiums
by deducting a pro rata portion each year over the life
of the bond.
Except in the case of bond dealers (who treat premium
amortization as a business expense), the amortization is
deductible from adjusted gross income.
If the interest on bonds is exempt from all tax, taxpayers
may not deduct the amortization, even though they must
reduce the basis of the bonds each year by a portion of
the premium.
¶826
Unstated Interest (Sec. 483)
In a sale of property with the proceeds payable in installments, a portion of the payments may be treated as
“unstated” or “imputed” interest.
An “imputed interest rate” will be treated as being
charged if less than the market rate of interest is charged.
Whether there is adequate stated interest in a debt instru¶826
96
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
ment issued for nonpublicly traded property is determined by reference to an appropriate “test rate.” When
adequate interest is not stated, the imputed interest rules
recharacterize part of the debt instrument’s principal
amount using a somewhat higher “imputation rate.”
The amounts of principal and interest as recharacterized
will generally determine the seller’s amount realized, the
buyer’s basis in the property, and the amount of interest
deductions and interest income for the buyer and the
seller, respectively.
For 2009, when the amount of seller financing does not
exceed $5,131,700, the minimum interest rate generally
must be 9% compounded semiannually or the applicable
federal rate (AFR). For sales over $5,131,700, the minimum interest rate is 100% of the AFR.
A special 6% rate applies in the case of intra-family
installment sales of real property valued at less than
$500,000.
¶827
Limitation on Investment Interest
[Sec. 163(d)]
The deduction for investment interest (defined below)
cannot exceed net investment income. The amount of
investment interest that cannot be deducted because
of this limit can be carried forward to the next tax year
and may be deducted to the extent that the net investment income exceeds the investment interest in that
later year.
PRACTICE POINTER: An election may be advisable
where there is no other investment income to offset
investment interest.
Investment expenses include all income-producing
expenses (other than interest expense) relating to the
investment property that are allowable deductions after
applying the 2%-of-adjusted-gross-income limit.
EXAMPLE: Jill Johnstone, a single taxpayer, has
investment income derived from interest income,
which together total $12,000. Jill’s investment
expenses (other than interest), which were directly
connected with the production of this income,
amounted to $980 after taking into account the
2%-of-adjusted-gross-income limit on miscellaneous itemized deductions. Jill also incurred
$12,500 of investment interest. Jill figures her net
investment income and the limits on the amount of
her investment interest expense deduction in the
following way:
Total investment income. . . . . . . . . . . . . . . . . . . .
$12,000
Less: Investment expenses (other than interest) .
980
PLANNING POINTER: Check for any investment
Net investment income. . . . . . . . . . . . . . . . . . . . .
$11,020
interest carryforwards from prior years that may be
added to investment interest for this year.
Less: Investment interest expense . . . . . . . . . . . .
12,500
Excess interest expense. . . . . . . . . . . . . . . . . . . .
$ (1,480)
¶828
Definitions for Investment
Interest Limitation
Investment interest generally is interest paid or accrued
on money borrowed to buy or carry property held for
investment.
Net investment income, for purposes of the limit on the
deduction for investment interest, is figured by subtracting investment expenses (other than interest expense)
from investment income.
Investment income generally includes gross income
derived from property held for investment (like interest,
annuities, and royalties). The IRS also considers interest
on tax refunds to be investment income.
¶827
Net capital gain from the disposition of investment property and dividends subject to the capital gain tax rate are
not treated as investment income. An election can be made
to include net capital gain and/or dividends as investment
income to the extent that net capital gain and/or dividends
are treated as ordinary income (the special capital gains
rates do not apply if the election is made).
This excess interest expense may be carried forward
to the following year.
The investment interest expense deduction is figured
on Form 4952.
¶828A Interest on Student Loans (Sec. 221)
Generally, interest on student loans is treated as nondeductible personal interest. However, a limited amount
of interest may be deductible as an adjustment to gross
income (whether or not the taxpayer itemizes other
deductions). The dollar limit on deductible student loan
interest is $2,500.
The deduction applies only to interest on a loan incurred
solely to pay higher education expenses (including
tuition, fees, supplies, and room and board). It does not
PA R T 1 — C H A P T E R 8 — D e d u c t i o n s : I n G e n e r a l , M e d i c a l E x p e n s e s , Ta x e s , a n d I n t e r e s t
include indebtedness to a related person. Adjustments
are made to qualified expenses for employer-provided
educational assistance, U.S. savings bond interest used
for higher education, education IRAs, and scholarships
and fellowships.
PITFALL: If a home equity loan is taken out solely
to pay higher education expenses, home mortgage
interest claimed as an itemized deduction cannot be
deducted again as student loan interest.
97
cannot claim the deduction on the student’s return.
However, where the student pays interest on the loan
after no longer qualifying as the parent’s dependent,
the student may be eligible for the deduction.
PRACTICE POINTER: It is important for families to
plan who should take out student loans: parent or
child. This decision will affect eligibility for the interest deduction on student loans.
For cancellation of student loans, see ¶716.
PRACTICE POINTER: A home owner who is eligible
for the student loan interest deduction should treat a
home equity loan used for higher education expenses
as an above-the-line deduction and forgo an itemized
deduction for interest on home equity debt. However,
if the home owner’s modified AGI precludes a student
loan interest deduction, then the interest is deductible
as interest on home equity debt.
Modified AGI limit. A full interest deduction can be
claimed only if modified AGI (essentially AGI without
regard to the foreign earned income exclusion) is below
$60,000 ($120,000 on a joint return). The interest deduction phases out once modified AGI reaches
$75,000 ($150,000 on a joint return). The deductible
interest for those within the phaseout range is figured
by using the following formulas:
Formula for Figuring the
Student Loan Interest Deduction
Singles:
Deductible amount
($2,500 maximum)
x
Modified AGI – $60,000
$15,000
Joint returns:
Deductible amount
($2,500 maximum)
x
Modified AGI – $120,000
$30,000
EXAMPLE: Sara Fisher, a single taxpayer, who just
graduated from college in 2009 while still owing student
loans, paid $2,600 of interest in 2009. Her modified AGI
is $67,500. Her interest deduction is reduced by $1,716
($2,500 interest limit multiplied by: [$70,000 modified
AGI – $60,000] ÷ $15,000). The deduction is limited to
$784 ($2,500 – $1,716 reduction).
The deduction cannot be claimed by someone who
can be claimed as a dependent on another taxpayer’s
return. So, a student who is still a parent’s dependent
STUDY QUESTIONS
6.
Student loan interest is deductible only as an itemized deduction. True or False?
7.
Which of the following is not treated as investment
income for purposes of figuring the net investment
income limitation on deducting investment interest?
a. Annuity benefits
b. Interest income
c. Dividends taxed at 15%
¶829
Prepaid Interest [Sec. 461(g)]
A cash-method taxpayer must deduct prepaid interest
over the period of the loan. This rule covers interest paid
for a home mortgage, business, or investment purpose.
An exception is provided for “points” on a mortgage
on a personal residence where certain requirements are
met. See ¶822.
¶830
Below-Market Loans (Sec. 7872)
A below-market loan is a loan on which no interest is
charged or on which interest is charged at a rate below
the applicable federal rate (AFR). Before June 7, 1984,
a below-market loan made without consideration,
such as a loan between family members, could result
in a gift from the lender to the borrower for federal
gift tax purposes. After June 6, 1984, a below-market
loan is generally recharacterized as an arm’s-length
transaction in which the lender is deemed (1) to have
made a loan to the borrower in exchange for a note
that requires the payment of interest at a statutory
rate and (2) to have made a payment to the borrower.
The lender’s payment to the borrower is treated as a
gift, dividend, contribution to capital, payment of
compensation, or other payment, depending on the
substance of the transaction.
¶830
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1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
For below-market gift loans and demand loans (loans
payable in full at any time on the lender’s demand), the
lender is treated as transferring the foregone interest
to the borrower. Similarly, the borrower is treated as
transferring the foregone interest to the lender and may,
therefore, be entitled to deduct the amount as interest
expense. These transfers are deemed to occur annually,
generally on December 31.
¶831
Recent Developments Affecting Medical
Expenses, Taxes, and Interest Expense
A taxpayer was denied a medical expense deduction for
in vitro fertilization expenses incurred in fathering two
children because the taxpayer had no condition that
caused infertility but used in vitro-fertilization for nonmedical reasons; these expenses were not incurred for
the treatment of a medical condition (Magdalin, TC
Memo. 2008-293).
PITFALL: The failure to report interest from below-
market loans has been identified by the IRS as one of
the most common errors made on individual income
tax returns.
A deduction for state and local sales taxes on new car
purchases is allowed for buyers in states without state
sales tax (assuming they meet eligibility requirements)
(IR-2009-60, 6/10/09).
For below-market term loans (loans that are not demand
loans), the lender is treated as transferring a lump-sum
cash payment to the borrower on the date the loan
is made. The amount transferred is the excess of the
amount of the loan over the present value of all payments due under the loan. In addition, an amount equal
to this excess is treated as original issue discount.
S corporation shareholders can deduct medical premiums above-the-line if the corporation buys the policy
and pays the premiums or if the shareholder buys the
policy and is reimbursed for the premiums, as well as
having the premiums included as compensation on Form
W-2 (Notice 2008-1, IRB 2008-2, 251, reversing IRS
Headliner 163, May 15, 2006).
There are a number of exceptions to the below-market
loan rules. Where the loan is considered a “gift loan,”
there is no imputed interest if the amount outstanding
is not over $10,000. Also, there is no imputed interest
if a gift loan up to $100,000 is made to a child for the
purchase of a principal residence, provided the child’s
investment income does not exceed $1,000.
The $1 million acquisition indebtedness limit applies in
the aggregate (per residence) so that co-owners who are
not married must share the limitation if the mortgage
exceeds $1 million (CCA Letter Ruling 200911007).
Each month the IRS publishes the AFR for loans of
varying lengths (short-term, mid-term, or long-term).
In the case of demand loans that were outstanding for
all of 2009 where the principal balance was constant,
the IRS interest rate is 0.82%.
The IRS ruled that a limited partner’s distributive share
of the interest expense on indebtedness allocable to the
partnership’s trade or business was investment interest
because the limited partner did not materially participate
in activity within the meaning of Code Sec. 469. (Rev.
Rul. 2008-12, IRB 2008-10, 520.)
For further details, see: IRS Publication 502,
Medical and Dental Expenses; IRS Publication 550,
Investment Income and Expenses; IRS Publication
907, Tax Benefits for Education; IRS Publication
936, Home Mortgage Interest Deduction; and IRS
Publication 969, Health Savings Accounts and
Other Tax-Favored Health Plans.
¶831
PART 1 — TAX FUNDAMENTALS FOR THE AVERAGE TAXPAYER
Deductions: Contributions and
Miscellaneous Deductions
9
LEARNING OBJECTIVES
EXAMPLE: Walter Bell owns Bell Electronics, an
This chapter was prepared to enable participants to learn
about charitable contributions and miscellaneous itemized deductions. More specifically, upon completion,
you will be able to:
Calculate charitable contribution deductions and
comply with substantiation requirements.
Figure unreimbursed employee business deductions.
Determine other miscellaneous itemized deductions.
CONTRIBUTIONS (SEC. 170)
¶901
accrual-basis taxpayer. On behalf of Bell Electronics,
Walter signs a $1,000 building fund pledge, payable
over five years, to his alma mater. Only the amount
Bell Electronics actually pays during the taxable year
is deductible.
PLANNING POINTER: Taxpayers age 70½ or older
are able to contribute their IRA distributions to charity
up to $100,000 annually and obtain tax-free treatment. This break does not apply in years after 2009
unless Congress extends the law.
How and When Deductible?
To encourage taxpayers to make voluntary donations to
charitable, religious, and similar organizations, the Code
permits a deduction for contributions made to qualified charitable, educational, or similar organizations.
To be deductible, the contributions must have actually
been made during the year, regardless of whether the
taxpayer is on the cash or the accrual basis and regardless of when pledged.
Schedule A is used to claim charitable contribution
deductions.
¶902
What Organizations Qualify?
Contributions of gifts can qualify as tax deductions only
if they were made to one of the following recipients:
A corporation, trust, community chest, fund, or
foundation, organized and operated exclusively for a
g
Gifts to
Charity
If you made a
gift and got a
benefit for it,
see page A-7.
16 Gifts by cash or check. If you made any gift of $250 or
more, see page A-7 . . . . . . . . . . . . .
17 Other than by cash or check. If any gift of $250 or more, see
page A-8. You must attach Form 8283 if over $500 . . .
18 Carryover from prior year . . . . . . . . . . .
19 Add lines 16 through 18 . . . . . . . . . . . . .
16
17
18
. .
.
.
.
.
.
.
19
¶902
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1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
charitable, religious, educational, scientific, or literary
purpose, or for the prevention of cruelty to children
or animals. Moreover, the organization must have
been organized under the laws of the United States,
its territories, or its possessions.
The United States, a state, a territory, a city, or a
political subdivision of the above, if made for a public
purpose.
Veterans’ organizations, their posts, and their auxiliaries.
A nonprofit cemetery company if the funds are dedicated to the perpetual care of the cemetery as a whole,
not to the care of a particular lot.
A domestic fraternity operating under the lodge system if the contribution is to be used exclusively for
public purposes.
The above organizations, in addition to being organized
and operated exclusively for the purposes named, must
also meet the following requirements:
No part of the net earnings of the organization can
go to the benefit of any private shareholder or individual.
No substantial part of the activities of the organization may consist of carrying on propaganda or otherwise attempting to influence legislation.
The following is a representative list of some qualifying
funds and organizations:
Nonprofit schools and hospitals
Churches and synagogues
Humane societies and associations
Junior leagues
Legal aid societies
American Cancer Society
American Heart Association
American Red Cross
Americare
CARE
4-H Clubs
Boy Scouts of America and Girl Scouts of America
Greater New York Fund
Police Athletic League
Damon Runyon-Walter Winchell Cancer Fund
Seeing-Eye, Inc.
Tuberculosis associations and societies
American Legion
American Veterans’ Committee
American Veterans of World War II
Catholic War Veterans
¶902
Disabled American Veterans
Marine Corps League
Veterans of Foreign Wars of the United States
Young Men’s and Young Women’s Christian or
Hebrew Associations
Salvation Army
September 11, 2001, disaster relief funds
Hurricane disaster relief funds
Contributions to the following kinds of organizations
are not deductible as charitable contributions:
Civic leagues (However, civic organization dues may
be deductible as a business expense. See ¶1807.)
Social clubs
International and foreign organizations (even though
devoted to charitable, religious, educational, etc.,
purposes)
PITFALL: Gifts to an individual, no matter how needy
the individual, are not deductible.
Bear in mind that the above list enumerates only a very
small fraction of the many organizations that qualify.
The IRS publishes a Cumulative List of Organizations,
augmented by bimonthly supplements, which contains
the names of all organizations that have specifically qualified and is available only from the IRS Web site (www.
irs.gov). The list contains only the names of organizations
on which a special ruling has been requested. Hence, the
fact that an organization is not listed does not necessarily mean that it does not qualify. In case there is doubt
as to whether contributions to a particular organization
are deductible, a taxpayer may send an inquiry to the
Commissioner of Internal Revenue, Washington, D.C.
20224, Attention T:R:EO.
Contributions are deductible whether they are made in
the form of outright gifts, membership dues, pew rentals,
or in any other manner.
If the gifts, contributions, or other payments entitle
the taxpayer to certain benefits, only the excess of the
amount paid over the fair market value of the benefit
is deductible. For instance, in the case of tickets to
a charitable benefit, only the excess of the amount
paid over the amount that would ordinarily be paid
for admission to similar entertainment is deductible.
Likewise, tuition fees paid to parochial schools are payments for services rendered and, thus, not deductible
as contributions.
PA R T 1 — C H A P T E R 9 — D e d u c t i o n s : C o n t r i b u t i o n s a n d M i s c e l l a n e o u s D e d u c t i o n s
¶903
101
Services Rendered to Organizations
NOTE: No additional deduction is allowed for dona-
The value of services rendered or contributed to charitable organizations is not deductible. However, unreimbursed expenditures made as a result of rendering
services to such an organization are deductible. Thus,
the cost of uniforms required to be worn by volunteer
Red Cross workers is deductible. Similarly, unreimbursed
transportation expenses incurred in rendering donated
services are deductible. Also deductible are expenditures
for meals and lodging incurred while away from home
in the course of rendering such services. “While away
from home” is interpreted by the Treasury to mean away
from home overnight.
Expenses (travel, meals, lodging, etc.) incurred in attending a convention of a qualified organization are deductible by delegates or officers of the organization, but not
by members who have no official capacity.
If taxpayers use their own automobiles on behalf of a
qualified organization instead of deducting the actual
car expenses, they may elect to take a flat 14¢-per-mile
deduction. The expenses incurred for tolls and parking
are separately deductible.
No charitable contribution is allowed for transportation
or other travel expenses incurred in performing services
away from home on behalf of a qualified charitable organization unless there is no significant element of personal
pleasure, recreation, or vacation in the travel.
¶903A Charitable Contributions
of Intellectual Property [Sec. 170(m)]
The donation of a patent or other intellectual property
(other than certain copyrights or inventory) is initially
limited to the taxpayer’s basis in the property or its
fair market value, whichever is less. However, for gifts
after June 3, 2004, donors can also claim an additional
deduction for a percentage of the income that the charity
receives from the donated property (either in the year of
the contribution or in a subsequent year).
tions of intellectual property to a private foundation
(other than a private operating foundation).
The charity must inform a donor at the time a contribution is made that it intends to treat the property as
subject to the additional charitable contribution deduction rule (i.e., that the charity intends to use the property
to obtain income).
PRACTICE POINTER: To claim the additional deduc-
tions, donors must give a written statement to the
charity at the time of the donation advising the charity
of the intention to claim these additional deductions. The charity will provide donors with information returns each year (Form 8899) that include the
income derived by the charity from the intellectual
property so that donors can apply the applicable
percentage and claim the additional deductions.
¶904
Proving the Deduction
One of the items most frequently questioned when a tax
return is examined is the deduction for contributions.
Therefore, taxpayers should be prepared to back up all
claimed deductions if the return is audited.
Cash contributions. Donations in any amount must be
substantiated with a written acknowledgment from the charity or a bank statement. For those who make contributions
through payroll deductions, the substantiation requirement
is met by keeping a pay stub, Form W-2, or an employerfurnished document showing the amount withheld as a
donation, as well as a pledge card or similar document from
the charity. Contributions over $250 must be accompanied
by a written acknowledgment from the charity.
The amount of the additional charitable deduction is
figured using a sliding-scale percentage of income that
the charity receives with respect to the donated property,
from 100% in the first year after the contribution to 20%
in the 10th year after the contribution.
Noncash contributions over $500. The instructions
to the return require that an explanatory statement,
giving a description of the kind of property contributed (e.g., paintings or securities), date of gift,
and method of valuation (except for securities), be
attached to the return. Donations of used clothing
and household items can be deducted only if items are
in good “used” condition. Condition is not specified
when a single item valued over $500 is supported by
an appraisal.
No deduction is allowed for income received after the
expiration of the legal life of the patent or intellectual
property or after the 10th anniversary of the date the
contribution was made.
In addition, where a donation of property exceeds $500,
the IRS has warned that no deduction will be allowed
unless Form 8283, Noncash Charitable Contributions,
is filed. This form identifies the charity as well as the
¶904
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1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
property that was donated. If the property donation
exceeds $5,000 (other than publicly traded securities or
privately held securities valued at $10,000 or less), then
the charity must sign the acknowledgment on this form
and a summary of a written appraisal must be attached. If
the donation is art valued at more than $20,000, certain
photographs must also be included with the form.
is retaining the car for its use (so that the donor can use
his own valuation) or is selling or has sold it (so that
the donor is limited in the deduction to the gross sale
proceeds). The statement must be received within 30
days of (1) the donation (if the charity keeps the car) or
(2) the date of the car’s disposition (if the charity sells
the car), whichever is later.
PITFALL: The IRS has warned taxpayers about valua-
The gross sale proceeds limitation does not apply if the
charity:
tion of donations of used cars to charity. See ¶905.
PRACTICE POINTER: Taxpayers donating art valued
at more than $50,000 can request a Statement of
Value (SOV) from the IRS before filing a tax return.
The request must include a copy of an appraisal
and a user fee of $2,500 to cover an SOV for up to
three items, plus $250 per item for each excess item.
Receiving an SOV can assure a taxpayer that the
claimed value will hold for deduction purposes.
If a gift entitles the donor to some benefit, the charity
must provide a statement as to the value of the benefit
and the amount of the deduction.
EXAMPLE: Marcy Smith contributes $100, which
entitles her to attend a dinner given by the charity.
The charity must tell her that the value of the dinner
in this instance is $40 and the charitable contribution is $60.
PRACTICE POINTER: If the value of the benefit is
merely a token (e.g., a calendar, mug, key chain), the
benefit can be ignored and the full contribution is
deductible. (Note: The dollar limit on token benefits
is fixed each year by the IRS. For 2009 amounts, see
Rev. Proc. 2008-66, IRB 2008-45, 1107.)
Car valued at more than $500. No deduction is allowed
unless the taxpayer obtains special substantiation from
the donor organization. The organization must provide
the taxpayer with a contemporaneous statement that it
¶904
Sells the car at a price significantly below fair market value to a needy individual in furtherance of its
charitable purpose.
Uses the car in a significant way in its charitable purpose or makes material improvements before selling
it (e.g., a major car repair, which does not include
paint jobs, rustproofing, waxing, removal of dents
and scratches, cleaning or repairing upholstery, and
installation of antitheft devices).
EXAMPLE: If Joyce Davidson donates a car to Meals
on Wheels and the organization uses it to deliver
meals, Joyce can deduct the value of the car based
on its fair market value. But if Meals on Wheels auctions off the car for $1,100 to get the proceeds for
use in its charitable activities, Joyce can deduct only
$1,100, even if the car’s value is properly estimated
at $1,400.
Charities must report the donation to the IRS on Form
1098-C. A copy of Form 1098-C will suffice as an
acknowledgment to the donor and must be attached to
the donor’s return.
For cars valued at more than $250 but not more than
$500, a written acknowledgment is still required, including a statement by the charity if any goods or services
were provided to the donor. However, even if the charity sells the car, the donor can deduct the car’s full fair
market value.
Form 8283 is used to report noncash contributions
over $500.
PA R T 1 — C H A P T E R 9 — D e d u c t i o n s : C o n t r i b u t i o n s a n d M i s c e l l a n e o u s D e d u c t i o n s
Form
8283
Noncash Charitable Contributions
(Rev. December 2006)
Department of the Treasury
Internal Revenue Service
OMB No. 1545-0908
Attach to your tax return if you claimed a total deduction
of over $500 for all contributed property.
103
Attachment
Sequence No.
See separate instructions.
Name(s) shown on your income tax return
155
Identifying number
Note. Figure the amount of your contribution deduction before completing this form. See your tax return instructions.
Section A. Donated Property of $5,000 or Less and Certain Publicly Traded Securities—List in this section only
items (or groups of similar items) for which you claimed a deduction of $5,000 or less. Also, list certain
publicly traded securities even if the deduction is more than $5,000 (see instructions).
Information on Donated Property—If you need more space, attach a statement.
Part I
(a) Name and address of the
donee organization
1
(b) Description of donated property
(For a donated vehicle, enter the year, make, model, condition, and mileage,
and attach Form 1098-C if required.)
A
B
C
D
E
Note. If the amount you claimed as a deduction for an item is $500 or less, you do not have to complete columns (d), (e), and (f).
(c) Date of the
contribution
(d) Date acquired
by donor (mo., yr.)
(e) How acquired
by donor
(f) Donor’s cost
or adjusted basis
(g) Fair market value
(see instructions)
(h) Method used to determine
the fair market value
A
B
C
D
E
Part II
Partial Interests and Restricted Use Property—Complete lines 2a through 2e if you gave less than an
entire interest in a property listed in Part I. Complete lines 3a through 3c if conditions were placed on a
contribution listed in Part I; also attach the required statement (see instructions).
2a Enter the letter from Part I that identifies the property for which you gave less than an entire interest
If Part II applies to more than one property, attach a separate statement.
.
b Total amount claimed as a deduction for the property listed in Part I: (1) For this tax year
.
(2) For any prior tax years
.
c Name and address of each organization to which any such contribution was made in a prior year (complete only if different
from the donee organization above):
Name of charitable organization (donee)
Address (number, street, and room or suite no.)
City or town, state, and ZIP code
d For tangible property, enter the place where the property is located or kept e Name of any person, other than the donee organization, having actual possession of the property
3a Is there a restriction, either temporary or permanent, on the donee’s right to use or dispose of the donated
property?
Yes No
b Did you give to anyone (other than the donee organization or another organization participating with the donee
organization in cooperative fundraising) the right to the income from the donated property or to the possession of
the property, including the right to vote donated securities, to acquire the property by purchase or otherwise, or
to designate the person having such income, possession, or right to acquire?
c Is there a restriction limiting the donated property for a particular use?
For Paperwork Reduction Act Notice, see separate instructions.
Cat. No. 62299J
Form
8283
(Rev. 12-2006)
¶904
104
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Form 8283 (Rev. 12-2006)
Page
Name(s) shown on your income tax return
2
Identifying number
Section B. Donated Property Over $5,000 (Except Certain Publicly Traded Securities)—List in this section only items (or groups of similar
items) for which you claimed a deduction of more than $5,000 per item or group (except contributions of certain publicly traded
securities reported in Section A). An appraisal is generally required for property listed in Section B (see instructions).
Information on Donated Property—To be completed by the taxpayer and/or the appraiser.
Part I
4
Check the box that describes the type of property donated:
Art* (contribution of $20,000 or more)
Qualified Conservation Contribution
Art* (contribution of less than $20,000)
Other Real Estate
Intellectual Property
Collectibles**
Equipment
Securities
Other
*Art includes paintings, sculptures, watercolors, prints, drawings, ceramics, antiques, decorative arts, textiles, carpets, silver, rare manuscripts, historical memorabilia, and
other similar objects.
**Collectibles include coins, stamps, books, gems, jewelry, sports memorabilia, dolls, etc., but not art as defined above.
Note. In certain cases, you must attach a qualified appraisal of the property. See instructions.
(a) Description of donated property (if you need
more space, attach a separate statement)
5
(b) If tangible property was donated, give a brief summary of the overall
physical condition of the property at the time of the gift
(c) Appraised fair
market value
A
B
C
D
(d) Date acquired
by donor (mo., yr.)
(e) How acquired
by donor
(f) Donor’s cost or
adjusted basis
(g) For bargain sales, enter
amount received
See instructions
(i) Average trading price
(h) Amount claimed as a
of securities
deduction
A
B
C
D
Part II
Taxpayer (Donor) Statement—List each item included in Part I above that the appraisal identifies as having
a value of $500 or less. See instructions.
I declare that the following item(s) included in Part I above has to the best of my knowledge and belief an appraised value of not more than $500
(per item). Enter identifying letter from Part I and describe the specific item. See instructions. Signature of taxpayer (donor)
Part III
Date
Declaration of Appraiser
I declare that I am not the donor, the donee, a party to the transaction in which the donor acquired the property, employed by, or related to any of the foregoing persons, or
married to any person who is related to any of the foregoing persons. And, if regularly used by the donor, donee, or party to the transaction, I performed the majority of my
appraisals during my tax year for other persons.
Also, I declare that I hold myself out to the public as an appraiser or perform appraisals on a regular basis; and that because of my qualifications as described in the
appraisal, I am qualified to make appraisals of the type of property being valued. I certify that the appraisal fees were not based on a percentage of the appraised property
value. Furthermore, I understand that a false or fraudulent overstatement of the property value as described in the qualified appraisal or this Form 8283 may subject me to
the penalty under section 6701(a) (aiding and abetting the understatement of tax liability). In addition, I understand that a substantial or gross valuation misstatement
resulting from the appraisal of the value of the property that I know, or reasonably should know, would be used in connection with a return or claim for refund, may subject
me to the penalty under section 6695A. I affirm that I have not been barred from presenting evidence or testimony by the Office of Professional Responsibility.
Sign
Here
Signature
Title
Date Business address (including room or suite no.)
Identifying number
City or town, state, and ZIP code
Part IV
Donee Acknowledgment—To be completed by the charitable organization.
This charitable organization acknowledges that it is a qualified organization under section 170(c) and that it received the donated property as described
in Section B, Part I, above on the following date Furthermore, this organization affirms that in the event it sells, exchanges, or otherwise disposes of the property described in Section B, Part I (or any
portion thereof) within 3 years after the date of receipt, it will file Form 8282, Donee Information Return, with the IRS and give the donor a copy of that
form. This acknowledgment does not represent agreement with the claimed fair market value.
Does the organization intend to use the property for an unrelated use?
Name of charitable organization (donee)
Employer identification number
Address (number, street, and room or suite no.)
City or town, state, and ZIP code
Authorized signature
Title
Printed on Recycled Paper
¶904
Yes
No
Date
Form
8283
(Rev. 12-2006)
PA R T 1 — C H A P T E R 9 — D e d u c t i o n s : C o n t r i b u t i o n s a n d M i s c e l l a n e o u s D e d u c t i o n s
105
STUDY QUESTIONS
EXAMPLE: Michael Finley’s adjusted gross income is
1.
Gifts to which of the following organization are not
deductible as a charitable contribution?
a. A local church
b. International charity for religious purposes
c. Veterans of Foreign Wars of the United States
2.
Which of the following payments to a church is not
a deductible contribution?
a. Parochial school fees
b. Pew rentals
c. Membership dues
3.
At what level must a cash donation be substantiated by a written acknowledgment from a charitable organization or a bank statement?
a. Any amount
b. $250
c. $500
NOTE: Answers to Study Questions, with feedback
to both the correct and incorrect responses, are
provided in Chapter 35, beginning with ¶3509.
¶905
Limitation on Charitable Deductions
In general, the deduction for contributions in any
one year is limited to 50% of the taxpayer’s adjusted
gross income (AGI). Any contributions exceeding the
50% maximum may be carried over and deducted for a
period of up to five years.
For contributions of capital gain property (property
held more than 12 months) and gifts to nonoperative private foundations, a 30% limitation applies.
However, for donations of conservation easements
in 2009, a 50% limitation applies as long as the gift
does not keep the land from being used for farming
or ranching.
A 20% limitation applies to gifts of capital gain property to private nonoperating foundations. As with the
contributions affected by the 50% maximum, a five-year
carryover applies to contributions limited by the 30%
or 20% maximum.
$10,000. During the year, he contributed $700 to his
church, $800 to Princeton University (both “public”
charities), plus $3,300 to the Finley Family Foundation, a “private,” 30%-ceiling charity.
To determine Michael’s deduction, first deduct the
$1,500 ($700 + $800) cash contributed to the 50%type organizations. Because the total is less than the
50% maximum, deduct $3,000 (the 30% maximum)
of the “private” contribution—a total deduction of
$4,500, which is still below the overall 50% limitation. The $300 remainder of the private foundation
donation can be carried over for five years.
An organization is considered as “privately supported” if
it does not receive a substantial part of its support from
the general public and/or governmental sources. Thus, the
organizations enumerated at the beginning of the chapter
would generally qualify for the 50% maximum because they
receive a substantial part of their financial support from the
general public. This group would also include museums,
libraries, civic centers, symphony orchestras, and similar
organizations that normally derive a substantial part of their
financial support from a representative number of persons
in the communities where the activities are centered. On
the other hand, donations to foundations, trusts, and other
organizations, which normally derive their financial support
almost entirely from the members of a single family or from a
few individuals, would be limited to the 30% maximum.
However, recognizing the fact that some private foundations
do indeed perform valuable and beneficial functions, the
50% deduction ceiling has been extended to any private
foundation that distributes all contributions during the
taxable year in which they were received or within a twoand-one-half-month period after the end of the year. Also
qualifying for the 50% ceiling is a private operating foundation (i.e., a private foundation operating a hospital, clinic,
museum, etc., on a nonprofit basis) and certain other private
foundations and organizations catering to the public.
NOTE: A deduction for a contribution to universi-
ties and colleges entitling the donor to purchase
athletic tickets to school events is limited to 80% of
the contribution. Then the donation is subject to the
50%-of-AGI limitation.
¶905
106
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
IRA transfers. Those
age 70-1/2 and older by the end
of 2009 can transfer up to $100,000 from their IRA to
a public charity (the suspension of the required minimum distribution rules for 2009 has not changed this
transfer option). While the distribution is tax free, no
charitable contribution deduction can be claimed for
this transfer.
¶906
The Five-Year Contribution Carryover
Contributions that cannot be deducted in the current year because they exceed the AGI limitations are not
lost. They may be carried forward up to a period of five
years. Contributions for the current year are deducted
before any contribution carryovers. If a taxpayer has
contribution carryovers for more than one year, the
oldest carryover is exhausted first, followed by the next
oldest, and so on.
¶907
Special Rules for Donations of Property
Charitable contributions need not be made in cash.
They can be made as property donations in the form
of stocks, bonds, merchandise, art objects, or other
property items.
PRACTICE POINTER: The charity must obtain pos-
session of the property within 10 years of the gift or
the donor’s death, whichever is first. If it does not,
the charitable deduction is recaptured and subject
to a 10% penalty.
Donations of appreciated property raise two questions:
What is the amount of the contribution based on—cost or
value? What is the percentage limitation on such gifts?
Stocks, bonds, other intangibles, and real estate.
Gifts of such property held long-term are deductible at
their fair market value on the date of gift. In a sense, the
appreciation is not taxed; rather, it is taken into account
in figuring the amount of the contribution. The amount
of such gifts cannot exceed 30% of adjusted gross
income. However, there is a special election available to
boost the ceiling to 50% (discussed below).
Contributions of appreciated publicly traded stock made
to private foundations are deductible at fair market
value. The donation cannot be more than 10% of
the outstanding stock. The donation is subject to the
20%-of-AGI ceiling.
Donations of stock to private foundations.
Ordinary income property. This includes all property
that, if sold, would not result in long-term capital gain.
¶906
Thus, it includes short-term gain property and ordinary
income property (e.g., inventory). Such property is
deductible at cost, and the amount of the gift cannot
exceed 50% of adjusted gross income.
Tangible personal property. The amount of the
deduction for appreciated tangible personal property
depends on the use of the donation by the charity.
If the property is used by the charity in its exempt
purpose, then the fair market value of the property is
used to determine the contribution. If the property
is not used by the charity in its exempt purpose, then
the amount of the gift is reduced by the appreciation,
thereby limiting the contribution to cost. If the fair
market value is used, then the gift cannot exceed 30%
of adjusted gross income. If the fair market value must
be reduced by the appreciation because of unrelated
use, then the gift cannot exceed 50% of adjusted
gross income.
EXAMPLE: In 2009, Mark and Maggie Smith give an
old manuscript to the Red Cross. They paid $100
for the book many years ago, and it is now worth
$1,000. They may deduct $100, subject to a 50%-ofadjusted-gross-income limit. But suppose instead
they give the book to the university library. They may
deduct $1,000, subject to a 30%-of-AGI limit.
PRACTICE POINTER: Donations of collectibles to
charity help donors to avoid the 28% tax rate on
their gain. For example, a donation of a painting to a
college that is used in its art history program would
entitle the donor to deduct the painting’s current
value and avoid tax on appreciation if the painting
had been sold.
PITFALL: If a taxpayer donates a car valued at more
than $500 to charity that is sold without a substantial
intervening use by the organization, the deduction
is limited to the gross sale proceeds, even if this is
lower than the car’s fair market value.
Election of 50% ceiling for intangibles and real
estate. Instead of applying the 30% ceiling for gifts
of intangibles and real estate as discussed above, a
50% ceiling can be used if the amount of the gift
is reduced by all of the appreciation. If the election
is made, then all gifts otherwise subject to the 30%
ceiling (including carryovers) must be reduced by
appreciation. The election is made simply by attach-
PA R T 1 — C H A P T E R 9 — D e d u c t i o n s : C o n t r i b u t i o n s a n d M i s c e l l a n e o u s D e d u c t i o n s
ing to Form 1040 a statement that the election is
being made.
PRACTICE POINTER: The election of the 50% ceil-
ing for intangibles generally is advisable only where
appreciation is minimal.
NOTE: Gifts of appreciated property other than inven-
tory and ordinary income property are exempt from
alternative minimum tax.
STUDY QUESTIONS
4.
Jake Miller contributes stock in X Corporation to
a public charity. What is the applicable adjusted
gross income limit for Jake?
a. 20%
b. 30%
c. 50%
5.
The carryover for charitable contributions in excess
of the AGI limits is:
a. Unlimited
b. Two years
c. Five years
¶908
No Deduction for Contribution
of Use of Property
A taxpayer who contributes the use of his property to a
charity, without contributing the actual property itself,
is not entitled to a contributions deduction.
EXAMPLE: Russell Sims, the owner of an office build-
ing, permits a charitable organization to occupy, rent
free, a suite of offices with a rental value of $2,000 per
year. He can claim no contributions deduction.
PITFALL: It is not advisable to donate the use of a
vacation home to a charity. Not only is the donation of the use not deductible, but the home owner
may also lose deductions for the home. Use of the
vacation home by someone who obtains the right
from the charity is treated as personal use by the
vacation home owner under the vacation home rules.
See ¶1709.
¶909
107
Gifts of Partial Interests
In general, no deduction can be claimed for property in
which the donor retains an interest. However, there are
certain exceptions:
Charitable remainder trusts. The donor may deduct
the present value of the remainder interest in a trust
in which an income interest is retained for life or a
term of not more than 20 years. The trust, which
can be set up either as a charitable remainder annuity
trust or as a charitable remainder unitrust, must meet
strict requirements.
Pooled income funds. The donor may deduct the present value of the remainder interest in a pooled income
fund in which an income interest is retained for life.
Charitable remainder in a personal residence or
farm. The donor may deduct the present value of the
remainder interest in a home or farm in which the
right to use the property is retained for life.
The present value of the remainder interests given to
charity is determined under IRS tables contained in
Treasury regulations.
¶910
Tuition and Fees Deduction (Sec. 222)
For 2009, there is an above-the-line deduction for the
payment of tuition and fees.
The tuition and fees deduction is a dollar-for-dollar
amount, up to a maximum deduction detailed below. The
deduction can be claimed only by those with AGI below a
certain amount. The deduction limit for married couples
filing jointly is $4,000 if AGI does not exceed $130,000,
or $2,000 if AGI exceeds $130,000 but does not exceed
$160,000. The deduction limit for other taxpayers is
$4,000 if AGI does not exceed $65,000, or $2,000 if AGI
exceeds $65,000 but does not exceed $80,000.
The deduction can be claimed for amounts distributed
from qualified tuition programs or Coverdell education
savings accounts that are not attributable to earnings
(i.e., a taxpayer’s contributions). Remember that these
contributions are nondeductible, so they are made
with after-tax dollars. The same deduction opportunity
applies to savings bond redemptions.
The deduction cannot be claimed in the same year that
an American Opportunity Tax credit or lifetime learning
credit is claimed for the same student.
¶910
108
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
NOTE: The deduction applies only through 2009
unless Congress extends it.
¶910A Educator Expenses [Sec. 62(a)(2)(D)]
Teachers and other educators can deduct up to $250 of
their out-of-pocket costs for classroom materials as an
above-the-line deduction in 2009.
“Educators” include those who work at least 900 hours in
grades K through 12 as a teacher, an instructor, a counselor, a principal, or an aide. Those who homeschool their
children do not qualify for this deduction.
Excess expenses can be claimed as a miscellaneous itemized
deduction subject to the 2%-of-AGI limitation.
NOTE: The deduction applies only through 2009
unless Congress extends it.
STUDY QUESTIONS
6.
7.
As part of a fund-raiser, Ann Carruthers allows
her college to raffle off a two-week stay in her ski
chalet in Vermont during the ski season. Ann may
deduct the value of this two-week stay in her ski
chalet. True or False?
Harold Ebersole is a philanthropically minded individual. Which donation of his is not deductible?
a. Allowing a local museum to hang a valuable
painting he owns on its walls.
b. Transferring a vacation home to a charitable
remainder unitrust.
c. Transferring a remainder interest in his farm to
a conservation society.
¶912
Miscellaneous Deductions (Sec. 67)
Certain employee expenses, expenses of producing
income, and other qualifying expenses are deductible as
miscellaneous itemized deductions on Schedule A (Form
1040). Most miscellaneous itemized deductions are subject to a 2% floor. Thus, the amount deductible is limited
to the total of these miscellaneous deductions that is more
than 2% of adjusted gross income. This limit is applied
after all other deduction limits are considered. Some of
the expenses subject to the 2% floor are as follows:
Professional society dues
Educational expenses (¶1907)
Home office expenses (¶1905)
¶910A
Expenses of looking for new job (¶1904)
Work clothes and uniforms
Union dues and fees
50% of business-related meal and entertainment
expenses (¶1807)
Certain employee business expenses
Investment counsel fees (¶1906)
Safe deposit box rental (¶1906)
Investment expenses (¶1906)
Fees paid to an IRA custodian
Convenience fee paid to processors of taxes charged
to a credit card
Legal fees for the production or collection of
income
Tax return preparation fees (including legal and
accounting fees)
EXAMPLE: Bob Green, an employee of Acme Corp.,
incurs $4,000 of business-related meal and entertainment expenses. Bob also had $600 of qualifying
expenses incurred while looking for a new job and car
expenses of $500. Bob’s adjusted gross income for
the year is $70,000. He had no other miscellaneous
expenses. Bob’s allowable miscellaneous itemized
deductions for the year are $1,700, computed as
follows:
Meal and entertainment expenses
Less 50% limit . . . . . . . . . . . . . . . . . . .
$4,000
2,000
$2,000
Job-hunting expenses . . . . . . . . . . . . . . . . . . .
Car expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
600
500
Total miscellaneous deductions . . . . . . . . . . . .
Less 2% of adjusted
gross income (2% of $70,000) . . . . . . . . . . . .
$3,100
Total miscellaneous deductions
allowed for year . . . . . . . . . . . . . . . . . . . . . . .
1,400
$1,700
Employees who receive reimbursement of business
expenses under an “accountable plan” need not include
the reimbursement in income, nor can they deduct the
expenses. Check the Form W-2 for proper reporting.
Schedule A is used to claim miscellaneous itemized
deductions.
Certain miscellaneous expenses are not subject to the 2%
limit. These include the following:
Gambling losses to the extent of gambling winnings
(¶712)
Certain adjustments when a taxpayer restores amounts
held under a claim of right
PA R T 1 — C H A P T E R 9 — D e d u c t i o n s : C o n t r i b u t i o n s a n d M i s c e l l a n e o u s D e d u c t i o n s
y
(
)
(
p g
)
Job Expenses 21 Unreimbursed employee expenses—job travel, union dues, job
and Certain
education, etc. Attach Form 2106 or 2106-EZ if required. (See
Miscellaneous
page A-9.) Deductions
22 Tax preparation fees . . . . . . . . . . . . .
(See
page A-9.)
Other
Miscellaneous
Deductions
21
22
23 Other expenses—investment, safe deposit box, etc. List type
and amount 24
25
26
27
28
23
24
Add lines 21 through 23 . . . . . . . . . . . .
25
Enter amount from Form 1040, line 38
26
Multiply line 25 by 2% (.02) . . . . . . . . . . .
Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- .
Other—from list on page A-10. List type and amount Amortizable bond premium (¶825)
Deductions allowable in connection with personal
property used in a short sale
Impairment-related work expenses of a handicapped
individual that are for deductible attendant care
services at the individual’s place of work and other
expenses in connection with the place of work that
are necessary for the individual to be able to work
Federal estate tax attributable to income in respect of
a decedent (IRD) (whether or not the tax has already
been paid)
Also, statutory employees (e.g., certain insurance agents
and outside salespersons) can claim their business
expenses on Schedule C and, therefore, are not subject
to the 2% floor.
STUDY QUESTION
8.
109
All of the following miscellaneous itemized deductions are subject to the 2% floor except:
a. Gambling losses
b. Tax return preparation fees
c. Union dues
.
.
.
.
.
27
28
¶913
Recent Developments Affecting
Contributions and Miscellaneous
Deductions
Convenience fee paid to credit card processor when
charging taxes is a miscellaneous itemized deduction
(IR-2009-37, 4/7/09).
For casual slot machine gamblers, the gains and losses are
netted at the end of the day to determine whether there
is a net gain or loss (Chief Counsel Advice 2009-011).
Proposed regulations detail substantiation requirements
for charitable donations (REG-140029-07, 8/7/08).
Receipt of token benefits from a charity in 2009 was no bar
to a full deduction as long as the value of the benefits did not
exceed 2% of the contribution, or $95, whichever is less, or
the contribution was at least $47.50, and the only benefit
received was a low-cost article worth not more than $9.50 (de
minimis rule) (Rev. Proc. 2008-66, IRB 2008-45, 1107).
For the IRS explanation of these deductions, see IRS
Publication 526, Charitable Contributions; IRS Publication 529, Miscellaneous Deductions; IRS Publication
561, Determining the Value of Donated Property; and
IRS Publication 1771, Charitable Contributions—
Substantiation and Disclosure Requirements.
¶913
PART 1 — TAX FUNDAMENTALS FOR THE AVERAGE TAXPAYER
Tax Computation
LEARNING OBJECTIVES
This chapter was prepared to enable participants to
compute the federal income tax. More specifically, upon
completion, you will be able to:
Determine whether to use the Tax Table or Tax Computation Worksheet to figure the tax.
Determine whether Schedule D, a separate worksheet,
or Schedule J is necessary to figure the tax.
Calculate the phaseout of personal exemptions for
high-income taxpayers.
NEW THIS YEAR
Tax rates. The tax brackets have been adjusted
for inflation. The 2009 rates are reflected in tax rate
tables and schedules reproduced at ¶3701. See also
¶1001 and ¶1603.
Personal exemption reduction. Taxpayers with
adjusted gross incomes over a threshold amount
that is dependent on filing status must reduce
personal exemptions. The threshold amounts have
been adjusted for inflation. However, only one-third
of the reduction is taken into account this year. See
¶1006.
¶1001 Tax Rates (Sec. 1)
The total tax is arrived at by applying the appropriate
rates to taxable income. See ¶115. No matter which
method of computing tax is used (whether the Tax Table,
the Tax Computation Worksheet, the Qualified Dividends and Capital Gain Tax Worksheet, or Schedule J),
the total tax is determined by the tax rates.
A six-bracket rate structure applies to taxable income
other than capital gains—0%, 15%, 25%, 28%, 33%,
and 35%. However, the tax rate on certain long-term
capital gains can never exceed 28%.
¶1002 Tax Table
Generally, all taxpayers with taxable incomes of less
than $100,000 must use the Tax Table to figure their tax
10
liability. However, see ¶1004 and ¶1005. In using the Tax
Table, taxpayers merely find their taxable income line
and their appropriate filing status column. See ¶3701
for the Tax Table.
EXAMPLE: In 2009, George Byran received a salary
of $52,425 plus other income of $8,000. He has
business deductions of $400 and itemized deductions of $14,000. He is 66 years of age; his wife,
Eva, is 42. Both have normal vision; Eva had no
income or deductions. They have one dependent
child. Filing a joint return, they will compute their
tax as follows:
Adjusted gross income . . . . . . . . . . . .
Less: Itemized deductions . . . . . . . . .
Personal exemptions
(3 x $3,650) . . . . . . . . . . . . . . .
$60,025
$14,000
10,950
Taxable income . . . . . . . . . . . . . . . . . .
24,950
$35,075
First, they find the $35,050–$35,150 income line in
the Tax Table. Next, they find the column for “Married
Filing Jointly” and read down the column. The amount
shown where the income line and filing status column
meet is $4,426. This is their tax.
¶1003 Taxpayers Using the
Tax Computation Worksheet
Taxpayers must use the Tax Computation Worksheet
to figure their tax if their taxable income is $100,000
or more.
There are four sections in the worksheet: for single,
for married filing jointly, for married filing separately, and for heads of households. In general, the
Tax Computation Worksheet calculates the tax by
applying the tax rates (25%, 28%, 33%, etc.) to the
appropriate amounts of taxable income at the various income tax brackets for the year. Always check
the IRS Web site at www.irs.gov or other available
resources for latest versions of all worksheets, publications, and forms.
¶1003
112
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
EXAMPLE: Lou and Jamie Hudson are a married couple filing jointly with four personal exemptions and an
adjusted gross income of $200,000 for 2009. They
will use the Tax Computation Worksheet because
their 2009 taxable income is too high to use the Tax
Table. Their itemized deductions for the year total
$48,200 (after reduction due to AGI over $166,800).
They would compute their taxable income for 2009
as shown in the table below, followed by the Tax
Computation Worksheet and the Hudsons’ Tax
Computation section from Form 1040.
Adjusted gross income . . . . . . . . . . . .
Less: Itemized deductions after
reduction . . . . . . . . . . . . . . . . . $48,200
Personal exemptions (4 x $3,650)
14,600
Taxable income . . . . . . . . . . . . . . . . . .
Tax from the Tax Computation Worksheet is
¶1003
$200,000
62,200
$137,200
$11,778.50
PA R T 1 — C H A P T E R 1 0 — Ta x C o m p u t a t i o n
113
2009 Tax Computation Worksheet—Line 44
!
See the instructions for line 44 that begin on page 37 to see if you must use the worksheet below to figure your tax.
CAUTION
Note. If you are required to use this worksheet to figure the tax on an amount from another form or worksheet, such as the Qualified Dividends and
Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, Schedule J, Form 8615, or the Foreign Earned Income Tax Worksheet, enter the amount
from that form or worksheet in column (a) of the row that applies to the amount you are looking up. Enter the result on the appropriate line of the
form or worksheet that you are completing.
Section A —Use if your filing status is Single. Complete the row below that applies to you.
Taxable income.
If line 43 is —
(a)
Enter the amount from line
43
(b)
Multiplication
amount
(c)
Multiply
(a) by (b)
(d)
Subtraction
amount
Tax.
Subtract (d) from (c).
Enter the result here and
on Form 1040, line 44
At least $100,000 but not over
$171,550
$
× 28% (.28)
$
$ 6,280.00
$
Over $171,550 but not over
$372,950
$
× 33% (.33)
$
$ 14,857.50
$
Over $372,950
$
× 35% (.35)
$
$22,316.50
$
Section B— Use if your filing status is Married filing jointly or Qualifying widow(er). Complete the row below that applies
to you.
Taxable income.
If line 43 is —
(a)
Enter the amount from line
43
(b)
Multiplication
amount
(c)
Multiply
(a) by (b)
(d)
Subtraction
amount
Tax.
Subtract (d) from (c).
Enter the result here and
on Form 1040, line 44
At least $100,000 but not over
$137,050
$
× 25% (.25)
$
$ 7,625.00
$
Over $137,050 but not over
$208,850
$
× 28% (.28)
$
$ 11,736.50
$
Over $208,850 but not over
$372,950
$
× 33% (.33)
$
$ 22,179.00
$
Over $372,950
$
× 35% (.35)
$
$ 29,638.00
$
Section C —Use if your filing status is Married filing separately. Complete the row below that applies to you.
Taxable income.
If line 43 is —
(a)
Enter the amount from line
43
(b)
Multiplication
amount
(c)
Multiply
(a) by (b)
(d)
Subtraction
amount
Tax.
Subtract (d) from (c).
Enter the result here and
on Form 1040, line 44
At least $100,000 but not over
$104,425
$
× 28% (.28)
$
$ 5,868.25
$
Over $104,425 but not over
$186,475
$
× 33% (.33)
$
$ 11,089.50
$
Over $186,475
$
× 35% (.35)
$
$ 14,819.00
$
Section D —Use if your filing status is Head of household. Complete the row below that applies to you.
Taxable income.
If line 43 is —
(a)
Enter the amount from line
43
(b)
Multiplication
amount
(c)
Multiply
(a) by (b)
(d)
Subtraction
amount
Tax.
Subtract (d) from (c).
Enter the result here and
on Form 1040, line 44
At least $100,000 but not over
$117,450
$
× 25% (.25)
$
$ 5,147.50
$
Over $117,450 but not over
$190,200
$
× 28% (.28)
$
$ 8,671.00
$
Over $190,200 but not over
$372,950
$
× 33% (.33)
$
$ 18,181.00
$
Over $372,950
$
× 35% (.35)
$
$ 25,640.00
$
¶1003
114
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
STUDY QUESTIONS
NOTE: Answers to Study Questions, with feedback
1.
Which rate is not a tax rate for 2009?
a. 15%
b. 25%
c. 31%
2.
A married couple with taxable income of $125,000
(and no qualifying dividends or capital gains) figures the tax using:
a. Tax Tables
b. Tax Computation Worksheet
c. Qualifying Dividends and Capital Gain
Worksheet
3.
Using the Tax Table found in ¶3701, what is the correct tax for a married couple with taxable income
of $52,488?
a. $7,036
b. $7,971
c. $9,306
4.
For 2009, the 10% tax bracket has not been
adjusted for inflation. True or False?
5.
A single taxpayer with taxable income of $44,000
(which includes qualified dividends of $1,500 and
net capital gains of $2,000) figures his tax using:
a. Tax Tables
b. Tax Computation Worksheet
c. Qualifying Dividends and Capital Gain
Worksheet
¶1004
to both the correct and incorrect responses, are provided in Chapter 35, beginning with ¶3510.
¶1004 Qualified Dividends and Capital Gain
Tax Worksheet to Figure Tax
Taxpayers who had a net capital gain from a sale or
exchange use Schedule D, Part III, to determine which,
if either, of the capital gains tax worksheets to use to
calculate the amount of capital gains tax. For taxpayers
with sales or exchanges of assets taxed at the 28% rate
or with unrecaptured Sec. 1250 gains or both, complete
the “Schedule D Tax Worksheet” in the instructions
to Schedule D of Form 1040. All other taxpayers,
including those with net long-term capital gains and/
or qualified dividends, must figure their tax using the
“Qualified Dividends and Capital Gain Tax Worksheet”
from instructions to Form 1040. Using the “Qualified
Dividends and Capital Gain Tax Worksheet” ensures
that net long-term capital gains will be taxed at the
applicable rate (0%, 15%, 25%, or 28%). Follow the
line-by-line directions to compute the tax.
PA R T 1 — C H A P T E R 1 0 — Ta x C o m p u t a t i o n
Qualified Dividends and Capital Gain Tax Worksheet—Line 44
Before you begin:
⻫
⻫
115
Keep for Your Records
See the instructions for line 44 that begin on page 37 to see if you can use this worksheet to
figure your tax.
If you do not have to file Schedule D and you received capital gain distributions, be sure
you checked the box on line 13 of Form 1040.
1. Enter the amount from Form 1040, line 43. However, if you are filing Form
2555 or 2555-EZ (relating to foreign earned income), enter the amount from
line 3 of the worksheet on page 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the amount from Form 1040, line 9b* . . . . . . . . .
2.
3. Are you filing Schedule D?*
Yes. Enter the smaller of line 15 or 16 of
Schedule D. If either line 15 or line 16 is a
3.
loss, enter -0No. Enter the amount from Form 1040, line 13
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. If you are claiming investment interest expense on Form
4952, enter the amount from line 4g of that form.
Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . 6.
7. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . 7.
8. Enter the smaller of:
• The amount on line 1, or
• $33,950 if single or married filing separately,
. . . . . . . . . . . 8.
$67,900 if married filing jointly or qualifying widow(er),
$45,500 if head of household.
9. Is the amount on line 7 equal to or more than the amount on line 8?
Yes. Skip lines 9 and 10; go to line 11 and check the ‘‘No’’ box.
No. Enter the amount from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Are the amounts on lines 6 and 10 the same?
Yes. Skip lines 11 through 14; go to line 15.
No. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the amount from line 10 (if line 10 is blank, enter -0-) . . . . . . . . . . . . . . 12.
13. Subtract line 12 from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. Multiply line 13 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15. Figure the tax on the amount on line 7. Use the Tax Table or Tax Computation Worksheet,
whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16. Add lines 14 and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17. Figure the tax on the amount on line 1. Use the Tax Table or Tax Computation Worksheet,
whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18. Tax on all taxable income. Enter the smaller of line 16 or line 17. Also include this amount on
Form 1040, line 44. If you are filing Form 2555 or 2555-EZ, do not enter this amount on Form
1040, line 44. Instead, enter it on line 4 of the worksheet on page 38 . . . . . . . . . . . . . . . . . . . . . .
}
}
14.
15.
16.
17.
18.
*If you are filing Form 2555 or 2555-EZ, see the footnote in the worksheet on page 38 before completing this line.
¶1004
116
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
If a taxpayer has capital gains subject to the 25% or
28% tax rates, then use the Schedule D Tax Worksheet
to compute tax liability.
Schedule D Tax Worksheet
Keep for Your Records
Complete this worksheet only if line 18 or line 19 of Schedule D is more than zero. Otherwise, complete the Qualified Dividends and Capital Gain Tax
Worksheet on page 38 of the Instructions for Form 1040 (or in the Instructions for Form 1040NR) to figure your tax.
Exception: Do not use the Qualified Dividends and Capital Gain Tax Worksheet or this worksheet to figure your tax if:
• Line 15 or line 16 of Schedule D is zero or less and you have no qualified dividends on Form 1040, line 9b (or Form 1040NR, line 10b); or
• Form 1040, line 43 (or Form 1040NR, line 40) is zero or less.
f
o
s
a
9
t
0
f
0
a
2
r
/
D /13
7
0 }
Instead, see the instructions for Form 1040, line 44 (or Form 1040NR, line 41).
1. Enter your taxable income from Form 1040, line 43 (or Form 1040NR, line 40). (However, if you are filing Form 2555 or 2555-EZ
(relating to foreign earned income), enter instead the amount from line 3 of the Foreign Earned Income Tax Worksheet on page 37 of
the Form 1040 instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter your qualified dividends from Form 1040, line 9b (or Form
1040NR, line 10b)* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Enter the amount from Form 4952 (used to
figure investment interest expense deduction),
line 4g . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter the amount from Form 4952, line 4e**
4.
5. Subtract line 4 from line 3. If zero or less, enter -0- . . . . . . . . . . 5.
6. Subtract line 5 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Enter the smaller of line 15 or line 16 of Schedule D . . . . . . . . . 7.
8. Enter the smaller of line 3 or line 4 . . . . . . . . . . . . . . . . . . . . 8.
9. Subtract line 8 from line 7. If zero or less, enter -0-* . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Add lines 6 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Add lines 18 and 19 of Schedule D* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the smaller of line 9 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Subtract line 12 from line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14. Subtract line 13 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15. Enter the smaller of:
• The amount on line 1 or
• $33,950 if single or married filing separately;
. . . . . . . . . 15.
$67,900 if married filing jointly or qualifying widow(er); or
$45,500 if head of household
16. Enter the smaller of line 14 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
17. Subtract line 10 from line 1. If zero or less, enter -0- . . . . . . . . . . 17.
18. Enter the larger of line 16 or line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 18.
If lines 15 and 16 are the same, skip line 19 and go to line 20. Otherwise, go to line 19.
19. Subtract line 16 from line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 19.
If lines 1 and 15 are the same, skip lines 20 through 32 and go to line 33. Otherwise, go to line 20.
20. Enter the smaller of line 1 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.
21. Enter the amount from line 19 (if line 19 is blank, enter -0-) . . . . . . . . . . . . . . . . . . . 21.
22. Subtract line 21 from line 20. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 22.
23. Multiply line 22 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Schedule D, line 19, is zero or blank, skip lines 24 through 29 and go to line 30. Otherwise, go to line 24.
24. Enter the smaller of line 9 above or Schedule D, line 19 . . . . . . . . . . . . . . . . . . . . . 24.
25. Add lines 10 and 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.
26. Enter the amount from line 1 above . . . . . . . . . . . . . . . . . . . . 26.
27. Subtract line 26 from line 25. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . 27.
28. Subtract line 27 from line 24. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 䊳 28.
29. Multiply line 28 by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If Schedule D, line 18, is zero or blank, skip lines 30 through 32 and go to line 33. Otherwise, go to line 30.
30. Add lines 18, 19, 22, and 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.
31. Subtract line 30 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.
32. Multiply line 31 by 28% (.28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33. Figure the tax on the amount on line 18. Use the Tax Table or Tax Computation Worksheet, whichever applies . . . . . . . . . . . . . .
34. Add lines 23, 29, 32, and 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35. Figure the tax on the amount on line 1. Use the Tax Table or Tax Computation Worksheet, whichever applies . . . . . . . . . . . . . . .
36. Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 34 or line 35. Also include
this amount on Form 1040, line 44 (or Form 1040NR, line 41). (If you are filing Form 2555 or 2555-EZ, do not enter this amount on
Form 1040, line 44. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet in the Form 1040 instructions) . . . . . . .
*If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet on page 37 of the Form 1040
instructions before completing this line.
**If applicable, enter instead the smaller amount you entered on the dotted line next to line 4e of Form 4952.
¶1004
1.
13.
14.
23.
29.
32.
33.
34.
35.
36.
PA R T 1 — C H A P T E R 1 0 — Ta x C o m p u t a t i o n
of their income by using special averaging over 3 years.
The tax is figured on Schedule J.
¶1005 Farm and Fishing Income Averaging
Taxpayers who earn their income from farming or commercial fishing can elect to figure the tax on this portion
Income Averaging for
Farmers and Fishermen
SCHEDULE J
(Form 1040)
1
2a
OMB No. 1545-0074
2009
Attach
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on return
See
117
to Form 1040 or Form 1040NR.
Instructions for Schedule J (Form 1040).
Attachment
Sequence No. 20
Social security number (SSN)
Enter the taxable income from your 2009 Form 1040, line 43, or Form 1040NR, line 40
.
.
.
1
Enter your elected farm income (see page J-2). Do not enter more than the amount on line 1 .
2a
Capital gain included on line 2a:
b
Excess, if any, of net long-term capital gain over net short-term
capital loss . . . . . . . . . . . . . . . . .
2b
c
Unrecaptured section 1250 gain
.
.
.
.
.
.
.
.
.
.
2c
3
Subtract line 2a from line 1 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
3
4
Figure the tax on the amount on line 3 using the 2009 tax rates (see page J-2) .
.
.
.
.
.
4
5
If you used Schedule J to figure your tax for:
● 2008, enter the amount from your 2008 Schedule J, line 11.
● 2007 but not 2008, enter the amount from your 2007 Schedule J, line 15.
● 2006 but not 2007 or 2008, enter the amount from your 2006
Schedule J, line 3.
Otherwise, enter the taxable income from your 2006 Form 1040,
line 43; Form 1040A, line 27; Form 1040EZ, line 6; Form 1040NR,
line 40; or Form 1040NR-EZ, line 14. If zero or less, see page J-2.
.
.
.
.
.
8
.
.
.
.
.
12
.
.
.
.
.
16
.
.
.
.
.
17
.
.
.
.
.
.
.
.
5
6
Divide the amount on line 2a by 3.0 .
.
.
.
.
.
.
6
7
Combine lines 5 and 6. If zero or less, enter -0-
.
.
.
.
.
7
8
Figure the tax on the amount on line 7 using the 2006 tax rates (see page J-4) .
9
If you used Schedule J to figure your tax for:
● 2008, enter the amount from your 2008 Schedule J, line 15.
● 2007 but not 2008, enter the amount from your 2007 Schedule J, line 3.
Otherwise, enter the taxable income from your 2007 Form 1040,
line 43; Form 1040A, line 27; Form 1040EZ, line 6; Form 1040NR,
line 40; or Form 1040NR-EZ, line 14. If zero or less, see page J-6.
9
10
Enter the amount from line 6
11
Combine lines 9 and 10. If less than zero, enter as a negative amount
12
Figure the tax on the amount on line 11 using the 2007 tax rates (see page J-7) .
13
If you used Schedule J to figure your tax for 2008, enter the amount from
your 2008 Schedule J, line 3. Otherwise, enter the taxable income from your
2008 Form 1040, line 43; Form 1040A, line 27; Form 1040EZ, line 6; Form
1040NR, line 40; or Form 1040NR-EZ, line 14. If zero or less, see page J-10
13
14
Enter the amount from line 6
14
15
Combine lines 13 and 14. If less than zero, enter as a negative amount
16
Figure the tax on the amount on line 15 using the 2008 tax rates (see page J-10)
17
Add lines 4, 8, 12, and 16
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
10
.
11
.
.
15
.
.
.
For Paperwork Reduction Act Notice, see Form 1040 or Form 1040NR instructions.
.
.
.
Cat. No. 25513Y
Schedule J (Form 1040) 2009
¶1005
118
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Under this averaging method, tax for the current year
is equal to the sum of the tax figured on taxable
income reduced by “elected farm/fishing income”
(business income subject to this election), plus the tax
that would have resulted if each of the 3 prior years
were increased by an amount equal to one-third of
elected farm income. The tax rates for the 3 prior years
are listed in the instructions to Schedule J.
“Farm income” includes gain from the sale or disposition of property (other than land) regularly used for a
substantial period of time in a farming business. Farming
business includes operating a nursery or sod farm, or the
raising or harvesting of trees bearing fruit, nuts, or other
crops, or ornamental trees.
PRACTICE POINTER: Farm income averaging results
in a lower tax only when income in the 3 prior years
was significantly lower overall than the current year.
However, figure the tax in the usual way to know if
income averaging results in any tax savings.
NOTE: Income averaging also applies for purposes
of alternative minimum tax.
Number of Exemptions
$3,650
2
3
4
5
6
7
8
7,300
10,950
14,600
18,250
21,900
25,550
29,200
The deduction for exemptions, plus itemized deductions
or the standard deduction, is subtracted from adjusted
gross income to arrive at taxable income.
PITFALL: Taxpayers who claim a large number of
exemptions may fall subject to the alternative minimum tax (AMT). The reason: Personal exemptions
are not deductible for AMT purposes.
Reduction in the deduction for exemptions. Highincome individuals may lose part or all of the benefit of
exemptions. The deduction for exemptions is reduced
by 2% for each $2,500 (or fraction thereof ) by which
adjusted gross income exceeds a threshold amount.
Filing Status
Joint returns, surviving spouses
STUDY QUESTION
6.
With respect to income averaging, which statement
is correct?
a. It applies to all income received by a farmer
or fisherman.
b. It applies only to farm/fishing income.
c. It does not apply for alternative minimum tax.
¶1006 Personal Exemptions
Chapter 3 explained when personal exemptions may be
claimed. Here is how this deduction is taken into account
in figuring the tax.
Each exemption allowed amounts to a deduction of
$3,650. Use the following to figure the deduction based
on the applicable number of exemptions:
¶1006
Deduction
1
Threshold Amount
$250,200
Heads of households
208,500
Singles
166,800
Married persons filing separately
125,100
EXAMPLE: Mary Moriarty, a single taxpayer with no
dependents, has adjusted gross income of $181,850.
Because her excess adjusted gross income is $15,050
($181,850 less the threshold amount of $166,800),
the initial reduction is 14% (2% x [$15,050 ÷ $2,500]).
The exemption is multiplied by 14% and the product
is divided by 3.0; the result, or $163, is the reduction,
one-third of which is taken into account, so the allowable deduction is $3,595 ($3,650 – $54).
PA R T 1 — C H A P T E R 1 0 — Ta x C o m p u t a t i o n
The phaseout can be most easily computed by using the
IRS worksheet from the instructions to Form 1040.
NEW FOR 2010: Starting in 2010, there is no reduction in exemptions for high-income taxpayers.
Deduction for Exemptions Worksheet—Line 42
1.
Keep for Your Records
Is the amount on Form 1040, line 38, more than the amount shown on line 4 below for your filing status?
Multiply $3,650 by the total number of exemptions claimed on Form 1040, line 6d, and enter the
result on Form 1040, line 42.
No.
STOP
Yes.
Continue
䊲
2.
Multiply $3,650 by the total number of exemptions claimed on Form 1040, line 6d . . . . . . . . . . . . . . . . . . . .
3.
Enter the amount from Form 1040, line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4.
Enter the amount shown below for your filing status.
• Single — $166,800
• Married filing jointly or qualifying widow(er) — $250,200
• Married filing separately — $125,100
• Head of household — $208,500
5.
6.
119
}
......
2.
4.
Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
Is line 5 more than $122,500 ($61,250 if married filing separately)?
Yes. Multiply $2,433 by the total number of exemptions claimed on Form 1040, line
6d. Enter the result here and on Form 1040, line 42. Do not complete the rest of
this worksheet.
No.
Divide line 5 by $2,500 ($1,250 if married filing separately). If the result is not a
whole number, increase it to the next higher whole number (for example, increase
0.0004 to 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7.
Multiply line 6 by 2% (.02) and enter the result as a decimal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
8.
Multiply line 2 by line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9.
Divide line 8 by 3.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10.
Deduction for exemptions. Subtract line 9 from line 2. Enter the result here and on
Form 1040, line 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
.
¶1006
120
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
STUDY QUESTION
STUDY QUESTIONS
7.
In 2009, a married couple with three dependent
children can deduct how much for their exemptions
(assuming they are not subject to the phaseout)?
a. $7,300
b. $10,950
c. $18,250
8.
In 2009, the reduced deduction for exemptions is
based on:
a. Gross income
b. Adjusted gross income
c. Taxable income
9.
With respect to personal exemptions, which statement is not correct?
a. The dollar amount for each exemption in
2009 is $3,650.
b. A large number of exemptions may trigger or
increase alternative minimum tax.
c. The phaseout for personal exemptions in
2009 has been completely eliminated.
10. Bob Eagleton opts to round off numbers on his
return. Which figure is not rounded off to $19?
a. $18.49
b. $18.50
c. $18.51
Bear in mind that this privilege applies only to
amounts required to be reported on a return, not
to items that must be taken into account in making the computations necessary to determine such
amounts.
EXAMPLE: Clint Clancy rents out his unused garage
at a monthly rental rate of $25.45. Because his income
tax return requires him to report only the total yearly
rent received, he must report $305.40 ($25.45 x 12),
which he may round off to $305. He cannot compute
the reportable rent by rounding off each month’s rent
to $25.00 and multiplying this amount by 12 to arrive
at a total of only $300.
¶1007 Rounding Off to Whole-Dollar Amounts
Taxpayers have the right to round off to the nearest even
dollar all amounts appearing on their income tax returns
and accompanying schedules. Amounts of less than 50 cents
would be eliminated and amounts of 50 cents or more
would be raised to the next dollar, as illustrated below:
Exact Amount:
$18.49
¶1007
To Be Reported as:
$18
18.50
19
18.51
19
For the IRS explanation of tax computation, see IRS
Publication 501, Exemptions, Standard Deduction,
and Filing Information, and IRS Publication 225,
Farmer’s Tax Guide.
PART 1 — TAX FUNDAMENTALS FOR THE AVERAGE TAXPAYER
Tax Credits
11
LEARNING OBJECTIVES
Work opportunity credit. There are two new tar-
This chapter was prepared to enable participants to learn
about tax credits. More specifically, upon completion,
you will be able to:
Figure each type of personal tax credit.
Distinguish between refundable and nonrefundable
credits.
Identify business tax credits and understand the limitations under the general business credit.
NEW THIS YEAR
Making work pay credit. Earners may qualify for a
tax credit of up to $400 ($800 for joint filers) in 2009
and 2010. See ¶1101A.
Child tax credit. The earned income amount for
purposes of figuring the refundable credit has
been decreased to $3,000 and the percentage has
increased to 15%. See ¶1104.
Excess FICA withholding credit. Employees who
geted groups added to this credit. See ¶1110.
Nonrefundable personal credits against AMT.
The ability to fully utilize nonrefundable credits, such
as the child tax credit, the retirement savings credit,
and the adoption credit against the AMT is extended
through 2009. Additionally, for 2009 and 2010, the
alternative motor vehicle credit will be treated as a
nonrefundable personal credit for purposes of the
alternative minimum tax.
Extension of energy credits. The credit for residential energy property has been reinstated for property
placed in service in 2009. Additionally, residential
energy efficient property credit for solar electric and
solar water heating property is extended through
December 31, 2016. The maximum annual credit
limit for qualified solar electric property expenditures
has been eliminated after 2008
¶1101 What Is a Tax Credit?
Earned income credit. The basic credit, earned
Taxpayers entitled to a tax credit are considered to have
paid that amount toward their tax liability. In other
words, each dollar of credit reduces the tax liability by
one dollar. Note the distinction between a tax deduction and a tax credit. A tax deduction is subtracted from
income (gross income or adjusted gross income, as the
case may be) when computing the income on which the
tax is figured. A tax credit, on the other hand, is generally
deducted from the tax after it has been computed. Obviously, a tax credit is much more valuable than a tax deduction; a taxpayer in the 35% tax bracket, for instance, saves
approximately 35 cents for each dollar of deductions and
one dollar in taxes for each dollar of credit.
income phaseout limits, and unearned income limit
have been adjusted for inflation, marriage penalty
relief has been provided, and the phaseout ranges
for those with three or more qualifying children have
been increased. See ¶1113.
For the average taxpayer, the most important and most
often encountered credits are the child tax credit, the
work opportunity credit, the earned income credit, higher
education credits, and a credit for child care expenses.
had two or more jobs and had more than $6,621.60
(the Social Security portion of FICA) withheld can
claim a credit for the excess amount. See ¶1114.
American opportunity credit. The Hope credit has
been replaced for 2009 and 2010 by an enhanced
new credit. See ¶1105.
Adoption credit. The adoption credit increased to
$12,150 and the credit can be claimed for a special
needs child without regard to school expenses.
See ¶1106.
Saver’s credit. The income eligibility limits have
been adjusted for inflation. See ¶1107.
Homebuyer credit. There is an increased credit
to $8,000 for first-time owners of principal residences purchased on or after January 1, 2009, and
smaller credits for certain long-time residents. See
¶1103A.
There are also several credits available to individuals who
own a business or have certain investments.
¶1101
122
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
46
Add lines 44 and 45 .
.
.
.
.
47
48
Foreign tax credit. Attach Form 1116 if required .
.
.
.
49
50
51
.
.
.
.
.
.
.
.
.
.
.
.
.
52
53
54
55
49
Education credits from Form 8863, line 29 . . . . .
50
Retirement savings contributions credit. Attach Form 8880
51
Child tax credit (see page 42) . . . . . . . . .
52
Credits from Form: a
8396 b
8839 c
5695
3800 b
8801 c
53
Other credits from Form: a
Add lines 47 through 53. These are your total credits . . . . .
Subtract line 54 from line 46. If line 54 is more than line 46, enter -0-
.
.
.
.
.
.
.
.
.
.
.
.
.
56
Self-employment tax. Attach Schedule SE
.
.
.
.
.
.
.
Credit for child and dependent care expenses. Attach Form 2441
.
.
.
.
Most credits can be used only to the extent there is tax liability
to offset. However, the earned income credit, the health care
credit for displaced workers, and a portion of the child tax
credit are called refundable credits because they can be used to
generate a tax refund in excess of a taxpayer’s tax liability.
Credits are claimed on page 2 of Form 1040, in the
section of the return “Tax and Credits,” immediately
following the tax computation.
PRACTICE POINTER: Certain credits are lost if a taxpayer
is subject to the alternative minimum tax (AMT). For 2009,
nonrefundable personal credits can be used to offset the
AMT. These credits are the child tax credit, the foreign tax
credit, the adoption credit, the retirement savers credit,
and the alternative motor vehicle credit.
¶1101A Making Work Pay Credit (Sec. 36A).
For 2009 and 2010, the American Recovery and Reinvestment Act of 2009 created a new credit designed to help
stimulate the economy. It is a tax credit of 6.2% of earned
income, up to a tax credit of $400 (or $800 on a joint
return). For wage earners, the credit is paid by means of
a reduction in withholding to boost take home pay. Selfemployed individuals entitled to the credit can receive it
by reducing estimated taxes or claiming it on the return.
Taxpayers who are not eligible to receive the credit
include:
Individuals without earned income
Nonresident aliens
Individuals who can be claimed as dependents
Individuals whose return does not include a Social
Security number
The credit applies only for those with modified adjusted
gross income (MAGI) no higher than $75,000 for
singles ($150,000 for joint filers). The credit phases out
for MAGI between $75,000 and $95,000 for singles
.
.
.
.
47
48
.
¶1101A
.
.
46
54
55
56
($150,000 and $190,000 for joint filers); no credit can
be claimed when MAGI exceeds the phaseout range.
PRACTICE POINTER: The credit is reduced by the
one-time recovery payment of $250 for government
benefit recipients.
The credit is figured on Schedule M, Making Work Pay
Credit.
¶1102 Credit for Child and Dependent Care
Expenses (Sec. 21)
Taxpayers who incur child and dependent care expenses
necessary for gainful employment are entitled to a credit
on a three-tier basis. First, taxpayers with adjusted
gross income of $15,000 or less are entitled to a credit
equal to 35% of employment-related expenses. Then,
the credit is reduced by one percentage point for each
$2,000 of adjusted gross income, or fraction thereof,
above $15,000. Finally, for taxpayers with adjusted gross
income of over $43,000, the credit is 20%.
The maximum amount of employment-related expenses
to which the credit can be applied is $3,000 if one qualifying child or dependent is involved and $6,000 if more
than one is involved. Only those employment-related
expenses that do not exceed an unmarried individual’s
earned income can be taken into account. For married
individuals, a joint return must be filed and both spouses
must work (part-time work qualifies), or one must work
while the other is a full-time student. Also, qualified
employment-related expenses cannot exceed the earned
income of the lower-earning spouse, and an incapacitated
or student spouse will be considered to have received
monthly earned income of $250 for one qualifying individual or $500 for two or more qualifying individuals.
Qualifying individual. A qualifying individual is a dependent
child under age 13, a dependent of any age if disabled, or a
disabled spouse. The taxpayer need not provide over half of
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
the qualifying individual’s support, but the person must live
with the taxpayer for more than half the year. An individual
is not treated as having the same residence as the taxpayer if
the relationship between them is in violation of local law.
For divorced or separated parents, only the custodial
parent can claim the credit.
Expenses for out-of-home, noninstitutional care of a disabled
spouse or dependent who regularly spends at least 8 hours a
day in the taxpayer’s home are eligible for the credit.
PITFALL: No credit can be claimed if a required Social
Security number for the dependent is not provided.
The expenses that are taken into account include nursery and other preschool fees and wages paid to a maid
for general domestic duties (and not merely wages for
services for the direct care of a child or sick or disabled
dependent). The cost of day camp, including specialty
camps (e.g., those specializing in soccer or computers)
can qualify for the credit. However, the cost of overnight
camp does not qualify for the credit. Transportation
costs to a day camp or after-school program not on
school premises qualify for the credit (e.g., bus fare paid
to the camp, but not the parent’s cost of driving the
child). The cost of an employment agency fee to find a
housekeeper is a qualified expense.
Relative as housekeeper. Even if the taxpayer’s mother
or mother-in-law or some other near relative is the person
entrusted with household and child care responsibilities, the wages paid to her count as “credit” expenses—
provided that the taxpayer does not claim the relative as
a dependent for tax purposes and provided also that the
necessary Social Security taxes are paid on such wages.
Child care services provided by grandparents for care
of their grandchildren qualify for the credit even if the
relatives’ services do not constitute “employment” for
Social Security purposes.
123
The maximum credit for one qualifying individual
ranges from $1,050 for taxpayers with income below
$15,000 to $600 for taxpayers with income in excess of
$43,000. Similarly, the maximum credit for two or more
qualifying individuals ranges from $2,100 to $1,200.
Limit due to tax-free employer-provided dependent
care. The amount of expenses eligible for the credit
($3,000 for one child or $6,000 for two or more children)
must be reduced by the amount of expenses excluded from
income because of coverage under an employer-provided
dependent care assistance program. See ¶610.
EXAMPLE: Mary Miller incurs $5,000 in child care
expenses for her son John. Of this amount, $3,000 is
reimbursed by her employer under a dependent care
assistance program. The amount of expenses eligible for
the credit ($3,000) must be reduced by the reimbursement ($3,000) so that Mary may not claim any credit.
If the reimbursement were only $1,000, then $2,000
($3,000 – $1,000) would be eligible for the credit.
Taxpayers must report the name, address, and taxpayer
identification number of the child care provider on their
returns. If they do not, their credit and any exclusion
from income for dependent care assistance payments
may be disallowed.
PITFALL: The IRS has noted that the failure to include
the care provider’s tax identification number (e.g.,
the individual’s Social Security number) is one of
the most common errors made on individual income
tax returns.
The credit is figured on Form 2441, Child and Dependent
Care Expenses. Page 2 of the form must also be completed
if any tax-free employer-provided dependent care was
received.
¶1102
124
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Form
Child and Dependent Care Expenses
2441
1040
..........
1040A
..........
Attach
Department of the Treasury
Internal Revenue Service (99)
2009
1040NR
to Form 1040, Form 1040A, or Form 1040NR.
See
OMB No. 1545-0074
2441
separate instructions.
Your social security number
Name(s) shown on return
Part I
1
Attachment
Sequence No. 21
Persons or Organizations Who Provided the Care—You must complete this part.
(If you have more than two care providers, see the instructions.)
(a) Care provider’s
name
(b) Address
(number, street, apt. no., city, state, and ZIP code)
(c) Identifying number
(SSN or EIN)
(d) Amount paid
(see instructions)
Complete only Part II below.
Did you receive
No
dependent care benefits?
Complete Part III on the back next.
Yes
Caution. If the care was provided in your home, you may owe employment taxes. If you do, you cannot file Form 1040A. For details,
see the instructions for Form 1040, line 59, or Form 1040NR, line 56.
Part II
2
Credit for Child and Dependent Care Expenses
Information about your qualifying person(s). If you have more than two qualifying persons, see the instructions.
(b) Qualifying person’s social
security number
(a) Qualifying person’s name
First
Last
3
Add the amounts in column (c) of line 2. Do not enter more than $3,000 for one qualifying
person or $6,000 for two or more persons. If you completed Part III, enter the amount
from line 34 . . . . . . . . . . . . . . . . . . . . . . . . . .
4
5
Enter your earned income. See instructions . . . . . . . . . . . . . . .
If married filing jointly, enter your spouse’s earned income (if your spouse was a student
or was disabled, see the instructions); all others, enter the amount from line 4 . . . .
6
7
Enter the smallest of line 3, 4, or 5 . . . . . . .
Enter the amount from Form 1040, line 38; Form
1040A, line 22; or Form 1040NR, line 36. . . . .
8
$0—15,000
15,000—17,000
17,000—19,000
19,000—21,000
21,000—23,000
23,000—25,000
25,000—27,000
27,000—29,000
10
11
12
13
.
.
Decimal
amount is
.
.
.
.
.
.35
.34
.33
.32
.31
.30
.29
.28
If line 7 is:
But not
over
Over
Decimal
amount is
$29,000—31,000
31,000—33,000
33,000—35,000
35,000—37,000
37,000—39,000
.27
.26
.25
.24
.23
39,000—41,000
41,000—43,000
.22
.21
.
.
5
6
43,000—No limit
.20
8
Multiply line 6 by the decimal amount on line 8. If you paid 2008 expenses in 2009, see
the instructions . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount from Form 1040, line 46; Form
1040A, line 28; or Form 1040NR, line 43. . . . .
10
Enter the amount from Form 1040, line 47; or Form
1040NR, line 44. Form 1040A filers, enter -0- . . .
11
Subtract line 11 from line 10. If zero or less, stop. You cannot take the credit . . . .
Credit for child and dependent care expenses. Enter the smaller of line 9 or line 12
here and on Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 45 . . . .
For Paperwork Reduction Act Notice, see page 4 of the instructions.
¶1102
.
3
4
7
Enter on line 8 the decimal amount shown below that applies to the amount on line 7
If line 7 is:
But not
over
Over
9
.
(c) Qualified expenses you
incurred and paid in 2009 for the
person listed in column (a)
X.
9
12
13
Cat. No. 11862M
Form 2441 (2009)
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
Page 2
Form 2441 (2009)
Part III
125
Dependent Care Benefits
14 Enter the total amount of dependent care benefits you received in 2009. Amounts you
received as an employee should be shown in box 10 of your Form(s) W-2. Do not include
amounts reported as wages in box 1 of Form(s) W-2. If you were self-employed or a
partner, include amounts you received under a dependent care assistance program from
your sole proprietorship or partnership . . . . . . . . . . . . . . . . . .
15 Enter the amount, if any, you carried over from 2008 and used in 2009 during the grace
period. See instructions . . . . . . . . . . . . . . . . . . . . . . .
16 Enter the amount, if any, you forfeited or carried forward to 2010. See instructions
17 Combine lines 14 through 16. See instructions . . . . . . . . . . . .
18 Enter the total amount of qualified expenses incurred
in 2009 for the care of the qualifying person(s) . . .
18
19
19 Enter the smaller of line 17 or 18 . . . . . . . .
20
20 Enter your earned income. See instructions . . . .
21 Enter the amount shown below that applies
to you.
● If
married filing jointly, enter your
spouse’s earned income (if your
spouse was a student or was disabled,
see the instructions for line 5).
● If married filing separately, see
instructions.
.
21
22 Enter the smallest of line 19, 20, or 21 . . . . . .
23 Enter $5,000 ($2,500 if married filing separately and
you were required to enter your spouse’s earned
income on line 21) . . . . . . . . . . . . .
22
● All others, enter the amount from line 20.
.
.
.
.
.
.
.
.
23
24 Are you filing Form 1040A?
Yes. Skip lines 24 through 27 and go to line 28.
No. Enter the amount from line 14 that you received from your sole proprietorship or
partnership. If you did not receive any such amounts, enter -0- . . . . . . . . .
25
25 Subtract line 24 from line 17 . . . . . . . . .
26
26 Enter the smaller of line 22 or 23 . . . . . . . .
27 Deductible benefits. Enter the smallest of line 22, 23, or 24. Also, include this amount on
the appropriate line(s) of your return. See instructions . . . . . . . . . . . . .
28 Excluded benefits. Form 1040 and 1040NR filers: Subtract line 27 from line 26. If zero or
less, enter-0-. Form 1040A filers: Enter the smaller of line 22 or line 23 . . . . . . .
29 Taxable benefits. Form 1040 and 1040NR filers: Subtract line 28 from line 25. If zero or
less, enter -0-. Also, include this amount on Form 1040, line 7; or Form 1040NR, line 8. On
the dotted line next to Form 1040, line 7; or Form 1040NR, line 8, enter “DCB.”
Form 1040A filers: Subtract line 28 from line 17. Also, include this amount on Form 1040A,
line 7. In the space to the left of line 7, enter “DCB” . . . . . . . . . . . . . .
14
15
16 (
17
)
24
27
28
29
To claim the child and dependent care
credit, complete lines 30 through 34 below.
30 Enter $3,000 ($6,000 if two or more qualifying persons) . . . . . . . . . . . .
31 Form 1040 and 1040NR filers: Add lines 27 and 28. Form 1040A filers: Enter the amount
from line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . .
32 Subtract line 31 from line 30. If zero or less, stop. You cannot take the credit.
Exception. If you paid 2008 expenses in 2009, see the instructions for line 9 . . . . .
33 Complete line 2 on the front of this form. Do not include in column (c) any benefits shown
on line 31 above. Then, add the amounts in column (c) and enter the total here. . . . .
34 Enter the smaller of line 32 or 33. Also, enter this amount on line 3 on the front of this form
and complete lines 4 through 13 . . . . . . . . . . . . . . . . . . . .
30
31
32
33
34
Form 2441 (2009)
¶1102
126
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Those who
purchase a home anywhere in the United States on or after
January 1, 2009, and who were not homeowners within
the past 3 years can take a tax credit of the lesser of $8,000
($4,000 if married filing separately) or 10% of the purchase
price of the home.
First-time home buyer credit (Sec. 36).
NOTE: Employment taxes on household employees
are explained at ¶3100 et seq.
STUDY QUESTIONS
1.
The value of a tax credit depends on the taxpayer’s
tax bracket. True or False?
2.
Jane Edwards, a single parent with two children,
ages 8 and 10, pays a babysitter to watch them
after school so she can work. Her AGI is $50,000
and she spends $7,500 on this expense. Her
maximum dependent care credit is:
a. $1,200
b. $1,500
c. $2,100
3.
Betty Johnson, a single parent with a 9-year-old
child, spends $5,000 on child care. Of this amount,
her employer reimburses $2,000. How much of
her expenses are taken into account in figuring
the dependent care credit?
a. $1,000
b. $3,000
c. $5,000
NOTE: Answers to Study Questions, with feedback
to both the correct and incorrect responses, are
provided in Chapter 35, beginning with ¶3511.
¶1103 Credit for the Elderly
or the Disabled (Sec. 22)
This credit, which is figured on Schedule R, is designed
to give elderly taxpayers and disabled persons with low
incomes who receive little or no tax-exempt Social Security, or similar tax-exempt benefit payments, a tax benefit
of approximately the same proportion as that received
by Social Security beneficiaries. However, because of the
ever-increasing standard deduction and personal exemption amounts, it is highly unusual for anyone to qualify
for this credit in 2009. The IRS removed the credit line
from the return in 2009; this credit, while theoretically
still possible, is no longer covered in this course.
¶1103A Homebuyer Credit
To encourage the purchase of realty as a way to spur the
housing market, there are tax credits for certain buyers.
¶1103
The credit phases out for those with modified adjusted gross
income (MAGI) between $75,000 and $95,000 ($150,000
and $170,000 for joint filers); no credit can be claimed when
MAGI exceeds $95,000 ($170,000 for joint filers).
PLANNING POINTER: The credit for the purchase of
a home within the 2009 period can be claimed on an
amended 2008 return; 2009 rules apply.
ALERT: As this book went to press, Congress was
about to extend the credit, raise the MAGI limits,
and create a lesser credit for those who have already
owned a home.
When two or more homebuyers who are not married to
each other purchase a home, the credit amount is allocated
between or among the eligible buyers in any reasonable way
(e.g., based on ownership interests or contributions to the
purchase price).
The credit does not need to be repaid if the home continues
to be used as a principal residence by the taxpayer claiming
the credit for at least 36 months following the purchase.
The credit is refundable, so it can be received even if it
exceeds tax liability.
In 2008 and
2009, those who purchase a home in the District of
Columbia can qualify for a home buyer credit of up to
$5,000 ($2,500 if married filing separately). The credit
applies only if the homeowner has not owned a residence
within the District of Columbia preceding the 1-year
period of the date of purchase.
D.C. home buyer credit (Sec. 1400C).
PITFALL: The homebuyer cannot use the DC credit if
the general first-time homebuyer credit is allowable
to this taxpayer or spouse.
The credit is phased out for those with modified adjusted
gross income between $110,000 and $130,000 on a
joint return, and between $70,000 and $90,000 for all
other filers.
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
The credit is figured on Form 8859, District of Columbia
First-Time Homebuyer Credit.
NOTE: The D.C. home buyer credit expires at the end
of 2009, unless Congress extends it.
¶1104 Child Tax Credit (Sec. 24)
Through 2010, taxpayers with a qualifying child under
age 17 may be entitled to a tax credit of up to $1,000 per
child (The definition of a qualifying child is in ¶305.) After
2010, the amount of the credit is scheduled to drop to
$500 per qualifying child (although this may be changed
by Congress before then). The credit applies only to a son,
daughter, stepson, stepdaughter, brother, sister, stepbrother,
stepsister, or descendant of any such individual.
An individual legally adopted by the taxpayer or an
individual who is lawfully placed with the taxpayer for
adoption by the taxpayer is treated as a child of such
taxpayer by blood.
A foster child who is placed with the taxpayer by an
authorized placement agency or by judgment, decree,
or other order of any court of competent jurisdiction is
treated as the taxpayer’s child.
The credit is figured on a worksheet in the instructions
to Form 1040. The full credit can be claimed by those
with modified AGI under $110,000 on a joint return or
$75,000 for singles. For married persons filing separate
returns, the threshold is under $55,000. For those with
earned income over $12,050, a refundable credit can be
claimed even if the taxpayer owes no tax.
For those with income over $110,000 on a joint return
($75,000 for singles; $55,000 for married filing separately), the credit is reduced by $50 for each $1,000
(or fraction thereof ) of modified AGI in excess of the
threshold. No credit can be claimed for those with modified AGI over $122,000 on a joint return, $87,000 for
singles, or $67,000 for married filing separately.
127
EXAMPLE: Jane Morgan, who is single and files as
head of household, has modified AGI of $78,500
and one child, age 10. Jane’s child tax credit is $800
($1,000 reduced by $200, which is the result of a
$50 reduction for each $1,000 or fraction thereof in
excess of the applicable threshold amount).
The maximum credit is the dollar amount of the credit
times the number of qualifying children. So, for example,
a family with three children under age 17 has a maximum
credit of $3,000.
If a taxpayer has two or more qualifying children, a portion of the credit may be treated as a supplemental child
credit amount. This amount is the difference between:
$1,000 times the number of qualifying children up
to income tax liability (tax liability net of credits
other than the earned income credit) over tentative minimum tax liability (without any foreign tax
credit), and
The total of regular tax liability (net of credits other
than the earned income credit) and the employee
share of FICA reduced by any earned income credit
The credit is refundable
to the extent of 15 percent of earned income in excess
of $3,000 (up to the credit amount).
Refundable child tax credit.
EXAMPLE: In 2009, Joe Smith and his wife, Nora, have
earned income of $25,000. They can claim a refundable
credit of $1,000 per child (up to $3,300, which is 15%
of [$25,000 – $3,000] up to the credit amount).
For taxpayers with three or more children, the refundable credit may be figured using the former supplemental child tax credit formula, which is the excess of Social
Security taxes over the earned income credit, instead
of the 15% of earned income if it results in a larger
refundable amount.
¶1104
128
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Form
8812
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on return
Part I
1
1040
Additional Child Tax Credit
..........
. .1040A
........
1040NR
OMB No. 1545-0074
8812
Attachment
Sequence No. 47
2009
Complete and attach to Form 1040, Form 1040A, or Form 1040NR.
Your social security number
All Filers
1040 filers:
1040A filers:
1040NR filers:
Enter the amount from line 6 of your Child Tax Credit Worksheet (see the
Instructions for Form 1040, line 51).
Enter the amount from line 6 of your Child Tax Credit Worksheet (see the
Instructions for Form 1040A, line 33).
Enter the amount from line 6 of your Child Tax Credit Worksheet (see the
Instructions for Form 1040NR, line 47).
If you used Pub. 972, enter the amount from line 8 of the worksheet on page 4 of the publication.
2
3
4a
b
5
6
Enter the amount from Form 1040, line 51, Form 1040A, line 33, or Form 1040NR, line 47 . . . . . .
Subtract line 2 from line 1. If zero, stop; you cannot take this credit . . . . . . . . . . . . .
4a
Earned income (see instructions on back) . . . . . . . . . . . .
Nontaxable combat pay (see instructions on
4b
back) . . . . . . . . . . . . .
Is the amount on line 4a more than $3,000?
No. Leave line 5 blank and enter -0- on line 6.
5
Yes. Subtract $3,000 from the amount on line 4a. Enter the result . . .
Multiply the amount on line 5 by 15% (.15) and enter the result . . . . . . . . . . . . . .
Next. Do you have three or more qualifying children?
No. If line 6 is zero, stop; you cannot take this credit. Otherwise, skip Part II and enter the smaller of
line 3 or line 6 on line 13.
Yes. If line 6 is equal to or more than line 3, skip Part II and enter the amount from line 3 on line 13.
Otherwise, go to line 7.
Part II
Withheld social security and Medicare taxes from Form(s) W-2, boxes 4 and 6.
If married filing jointly, include your spouse’s amounts with yours. If you
worked for a railroad, see instructions on back . . . . . . . . . .
8
1040 filers:
1040A filers:
1040NR filers:
Enter the total of the amounts from Form 1040, lines
27 and 57, plus any taxes that you identified using code
“UT” and entered on the dotted line next to line 60.
Enter -0-.
Enter the total of the amounts from Form 1040NR, line
53, plus any taxes that you identified using code "UT"
and entered on the dotted line next to line 57.
Add lines 7 and 8 . . . . . . . . . . . . . . . . . .
Enter the total of the amounts from Form 1040, lines
1040 filers:
64a and 69.
1040A filers:
11
12
2
3
6
Certain Filers Who Have Three or More Qualifying Children
7
9
10
1
Enter the total of the amount from Form 1040A, line
41a, plus any excess social security and tier 1 RRTA
taxes withheld that you entered to the left of line 44
(see instructions on back).
1040NR filers: Enter the amount from Form 1040NR, line 63.
Subtract line 10 from line 9. If zero or less, enter -0- . . . . . . .
Enter the larger of line 6 or line 11 . . . . . . . . . . . .
Next, enter the smaller of line 3 or line 12 on line 13.
Part III
Additional Child Tax Credit
This is your additional child tax credit
13
7
8
9
.
10
.
.
11
12
. . . . . . . . . . . . . . . . . . .
13
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
1040
..........
1040A
1040NR Enter this amount on
Form 1040, line 65,
Form 1040A, line 42, or
Form 1040NR, line 61.
..........
For Paperwork Reduction Act Notice, see back of form
¶1104
Cat. No. 10644E
Form 8812 (2009)
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
The withholding tables that employers use to figure
withholding from employees’ wages reflect the child
tax credit. Employees will be able to claim withholding allowances for the credit so that, in effect, they will
receive the credit ratably throughout the year in their
paychecks. It is important for individuals eligible for the
credit to complete a new Form W-4 so their employers
can adjust withholding accordingly.
The taxpayer must provide the dependent’s tax identification number in order to claim the credit.
PLANNING POINTER: Individuals planning for marital
dissolutions need to pay special attention to provisions for the dependency exemption. This, in turn, will
affect which parent can claim the child tax credit.
129
¶1105 American Opportunity Credit and
Lifetime Learning Credit (Sec. 25A)
There are two tax credits for paying for higher education:
American opportunity credit (which replaces the Hope
credit for 2009 and 2010) and lifetime learning credit.
The credits are quite different in a number of respects
but have some of the same requirements.
A taxpayer may be eligible for either credit but can claim
only one with respect to expenses of each family member. Therefore, it is possible to claim both credits on the
same return (e.g., the American opportunity credit for a
dependent who is a college senior and the lifetime learning credit for a dependent who is a graduate student).
The credits are figured on Form 8863, Education Credits.
STUDY QUESTIONS
4.
The credit for the elderly and the disabled is
designed to assist low-income taxpayers living
on Social Security benefits. True or False?
5.
In 2009, the maximum child tax credit for one
eligible child is:
a. $600
b. $700
c. $1,000
¶1105
130
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Form
Education Credits (American Opportunity, Hope, and
Lifetime Learning Credits)
8863
Department of the Treasury
Internal Revenue Service (99)
OMB No. 1545-0074
2009
See separate Instructions to find out if you are eligible to take the credits.
Attach to Form 1040 or Form 1040A.
Attachment
Sequence No. 50
Your social security number
Name(s) shown on return
f
o
s
a
9
t
0
f
0
a
2
r
D /25/
8
0
Caution: You cannot take both an education credit and the tuition and fees deduction (see Form 8917) for the same student for the same year.
Part I
American Opportunity Credit
Use Part II if you are claiming the Hope credit for a student attending school in a Midwestern disaster area and elect to
waive the computation method in this part for all students.
Caution: You cannot take the American opportunity credit for more than 4 tax years for the same student.
1
(a) Student’s name
(as shown on page 1
of your tax return)
First name
Last name
(b) Student’s
social security
number (as
shown on page 1
of your tax return)
(c) Qualified
expenses (see
instructions). Do
not enter more
than $4,000 for
each student.
(d) Subtract $2,000
from the amount in
column (c). If zero
or less, enter -0-.
(e) Multiply the
amount in column
(d) by 25% (.25)
2 Tentative American opportunity credit. Add the amounts on line 1, column (f). Skip Part II if line 2 is
more than zero. If you are taking the lifetime learning credit for a different student, go to Part III;
otherwise, go to Part IV . . . . . . . . . . . . . . . . . . . . . . . . .
Part II
Hope Credit
(f) If column (d) is zero,
enter the amount from
column (c). Otherwise,
add $2,000 to the
amount in column (e).
2
Use this part if you are claiming the Hope credit for a student attending school in a Midwestern disaster area and elect to
waive the computation method in Part I for all students.
Caution: You cannot take the Hope credit for more than 2 tax years for the same student.
3
(a) Student’s name
(as shown on page 1
of your tax return)
First name
Last name
(b) Student’s
social security
number (as
shown on page 1 of
your tax return)
(c) Qualified
expenses (see
instructions). Do
not enter more
than $2,400* for
each student.
(d) Enter the smaller
of the amount in
column (c) or
$1,200**
(e) Add
column (c) and
column (d)
(f) Enter one-half
of the amount in
column (e)
*For each student who attended an eligible educational institution in a Midwestern disaster area, do not enter more than $4,800.
**For each student who attended an eligible educational institution in a Midwestern disaster area, enter the smaller of the amount in column (c) or $2,400.
4 Tentative Hope credit. Add the amounts on line 3, column (f). If you are taking the lifetime learning
credit for another student, go to Part III; otherwise, go to Part V . . . . . . . . . . .
Part III
5
(a) Student’s name (as shown on page 1 of your tax return)
First name
Last name
(b) Student’s social security
number (as shown on page
1 of your tax return)
6
7a
Add the amounts on line 5, column (c), and enter the total . . . . . . . . . . . . . .
Enter the smaller of line 6 or $10,000 . . . . . . . . . . . . . . . . . . . .
b For students who attended an eligible educational institution in a Midwestern disaster area, enter the smaller
of $10,000 or their qualified expenses included on line 6 (see special rules on page 3 of the instructions) .
c Subtract line 7b from line 7a
. . . . . . . . . . . . . . . . . . . . . . .
8a Multiply line 7b by 40% (.40) . . . . . . . . . . . . . . . . . . . . . . .
b Multiply line 7c by 20% (.20) . . . . . . . . . . . . . . . . . . . . . . .
c Tentative lifetime learning credit. Add lines 8a and 8b. If you have an entry on line 2, go to Part IV; otherwise go to Part V
For Paperwork Reduction Act Notice, see page 4 of separate instructions.
¶1105
4
Lifetime Learning Credit. Caution: You cannot take the American opportunity credit or the Hope credit and the
lifetime learning credit for the same student in the same year.
Cat. No. 25379M
(c) Qualified
expenses (see
instructions)
6
7a
7b
7c
8a
8b
8c
Form 8863 (2009)
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
American opportunity credit The
American opportunity credit is a tax credit of up to $2,500 per year for the
first 4 years of higher education (the Hope credit had
been limited to the first 2 years of higher education). The
credit is 100% of the first $2,000 of qualified expenses
and 25% of the next $2,000 of qualified expenses. Thus,
for example, a student who incurs $4,000 or more of
qualified tuition and fees is eligible (subject to modified
AGI limits below) for a maximum American opportunity
credit of $2,500. The credit is figured on a per-student
basis (it is figured separately for each eligible student in
the taxpayer’s family).
EXAMPLE: Ben Silverman has two children, one a
freshman and the other a junior in college, paying
tuition of $8,000 each. Ben’s credit is $5,000 (2 x
[100% of $2,000 + 25% of $2,000]).
The credit is 40% refundable, so it can be received
even though it is more than tax liability.
Lifetime learning credit. This is a credit of 20% of
qualified tuition and fees incurred by a taxpayer, a spouse,
or dependents. Only $10,000 of qualified expenses can
be taken into account. Thus, the maximum credit is
$2,000 ($10,000 x 20%). The credit applies on a pertaxpayer basis (all expenses of a taxpayer’s children, for
example, are totaled and then the credit is figured).
131
be claimed for any amounts covered by educational
assistance that is excludable from gross income, such as
employer-provided educational assistance and tax-free
scholarships and fellowships. Also, no credit can be
claimed if the taxpayer claims a deduction for the same
education expenses.
PRACTICE POINTER: Taxpayers may elect not to
claim the credit so that they can use other education
tax incentives.
Income limits for higher education credits. Different
income limits apply to each credit. For the American
opportunity credit, the full credit is phased out ratably
for those with modified MAGI between $160,000 and
$180,000 on a joint return ($80,000 and $90,000 for
singles). For the lifetime learning credit, the full credit is
phased out ratably for those with modified AGI between
$100,000 and $120,000 on a joint return ($50,000 and
$60,000 for singles). Modified AGI includes amounts
excluded under the foreign earned income exclusion. The
phaseout of the American Opportunity credit is figured
by using the following formula:
Formula for Figuring the Reduction
in the American Opportunity Credit
Singles:
Tax credit amount
x
Modified AGI$80,000
$10,000
x
Modified AGI$160,000
$20,000
Joint returns:
PRACTICE POINTER: Families with more than one
Tax credit amount
student in school usually will receive a greater tax
benefit from claiming the Hope credit than the lifetime
learning credit.
EXAMPLE: Assume Betty Hale, a single taxpayer with
The lifetime learning credit can be claimed for an
unlimited number of years (compared with the American
opportunity credit, which is limited to the first 4 years
of higher education).
modified AGI of $75,000, incurs qualified education
expenses of $10,000 for her daughter’s college education. The maximum American opportunity credit
of $2,500 is reduced by $1,875 ([$75,000 modified
AGI – $60,000] ÷ $10,000). Thus, the allowable tax
credit is $625 ($2,500 – $1,875 reduction).
The student must be enrolled in an eligible educational
institution taking undergraduate or graduate-level
courses to acquire or improve job skills. The student
need not be enrolled for any minimum course work (as
compared with the American opportunity credit requiring at least half-time study).
The credit is available in the year the expenses are paid
as long as the education commences or continues during
that year or during the first 3 months of the next year.
Any qualified tuition and fees paid with loan proceeds
are also eligible for the credit. However, no credit can
Other rules applicable to both credits. The credit can
be claimed for the taxpayer and spouse and for dependent children.
PRACTICE POINTER: Only the parent claiming the
exemption is entitled to a credit with respect to that
child. Individuals planning for marital dissolution
should plan carefully for which parent is entitled to
claim a child as a dependent because this will affect
eligibility to claim a higher education credit.
¶1105
132
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
PRACTICE POINTER: The student may claim an
education credit if the parent waives the dependency
exemption of the child. This may be advisable where
the student has sufficient tax liability to be offset by
the credit and/or the parent’s AGI causes a phaseout
of the exemptions.
The credit is recaptured if the taxpayer or child receives
a refund of tuition and related expenses. The American
opportunity credit cannot be claimed for expenses of
a student convicted of a federal or state felony drug
offense (there is no similar restriction on the lifetime
learning credit).
“Higher education” for purposes of the American opportunity credit means enrollment in a postsecondary degree
or certificate program at an eligible institution on at least
a half-time basis. There is no such requirement for the
lifetime learning credit.
“Qualified expenses” include tuition and certain fees
required for enrollment or attendance at an eligible educational institution. Charges for student activities, athletics,
insurance, transportation, or other personal expenses are
not qualified expenses. However, the expenses of education involving sports, games, or hobbies can be treated as
qualified expenses if they are part of the student’s degree
program. Qualified expenses include only those paid by
the taxpayer or student out-of-pocket. Expenses covered
by employer-provided educational assistance cannot
be claimed as a credit. Similarly, qualified expenses are
reduced by scholarship and fellowship grants excludable
from gross income. Also, if the taxpayer claims a deduction for education expenses because the courses maintain
or improve skills or are required by the employer or the
law to keep one’s current salary or position, no credit can
be claimed for the same expenses.
PRACTICE POINTER: Using savings, gifts, or loan
proceeds to pay for higher education costs does
not affect eligibility for claiming a higher education
credit.
The credit phases out for those with modified adjusted
gross income over $182,180 in 2009, and is completely
phased out when modified AGI exceeds $222,180.
Modified adjusted gross income is AGI before certain
foreign income exclusions; the same limit applies to married couples and single filers. The reduction in the credit
is figured by applying a percentage figured as follows:
Modified AGI – $182,180
Applicable exclusion
x
$40,000 ($222,180 –
$182,180)
EXAMPLE: Tom Peterson has modified adjusted gross
income of $192,180, and he paid $8,000 in qualified
adoption expenses in 2009 for a child who is not a
special-needs child, the same year that the adoption became final. The reduction percentage is 25%
($192,180 – $182,180 = $10,000; $10,000 ÷ $40,000 =
25%). The taxpayer’s maximum credit is $6,000 ($8,000
x 25% = $2,000; $8,000 – $2,000 = $6,000).
PRACTICE POINTER: A taxpayer must have a tax
identification number in order to qualify for the credit.
See ¶314.
Qualified expenses. The credit applies to adoption fees,
court costs, attorney’s fees, traveling expenses, and other
expenses directly related to a legal adoption. The costs of a
surrogate parenting arrangement are not qualified expenses.
PITFALL: No credit can be claimed for expenses
for which the taxpayer is eligible for the adoption
assistance exclusion (explained in ¶611A). Also,
no credit can be taken for any amounts reimbursed
by an employer. Complete page 2 of Form 8839 to
figure the amount of unreimbursed expenses that
are eligible for the credit. However, if the adoption
expenses exceed $12,150, the taxpayer may qualify
for both the exclusion and the credit.
PRACTICE POINTER: The credit may also be claimed
if the adoption falls through in 2009.
¶1106 Adoption Credit (Sec. 23)
Taxpayers who adopt a child in 2009 may claim
a tax credit of up to $12,150 of eligible adoption
expenses. The credit is figured on Form 8839, Qualified Adoption Expenses. Those adopting a special needs
child can claim the credit without regard to actual
expenses paid.
¶1106
Carryforward. The
credit may not exceed tax liability.
Excess amounts can be carried forward for up to 5 years.
Carryforward amounts are not subject to additional
AGI phaseout.
When adopting a child who is a
U.S. citizen or resident, no credit may be claimed in the
Timing of the credit.
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
year the expenses are incurred if the adoption is not final
by year-end. Instead claim the credit in the following
year, even if the adoption is still not finalized. If expenses
are paid in a year following the year in which the adoption has been finalized, the credit may be claimed in that
subsequent year.
If the child is not a U.S. citizen or resident at the time proceedings start, then a different rule applies. No credit may
be claimed until the year the adoption becomes final.
133
EXAMPLE: Carl and Norma Morris, a married couple
adopting a child who is a U.S. citizen, incur $3,000
of adoption expenses in 2009, another $1,000 in
2010, and yet another $1,000 in 2011—the year in
which the adoption becomes final. Applying the timing rule, no credit may be claimed in 2009 because
the adoption did not become final that year. A credit
can be claimed in 2010. And another credit may
be claimed in 2011, the year in which the adoption
became final. If the child were a foreign citizen, no
credit could be claimed until 2011 when the adoption becomes final.
¶1106
134
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Form
Qualified Adoption Expenses
8839
Attach
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on return
Before you begin
Part I
See
OMB No. 1545-0074
2009
to Form 1040 or 1040NR.
separate instructions.
Attachment
Sequence No. 38
Your social security number
f
o
s
a
9
t
0
f
0
a
2
r
D /14/
7
0
✓ Figure the amounts of any of the following credits you are claiming: credit for the elderly or the disabled, nonbusiness energy property
credit, qualified plug-in electric vehicle credit, alternative motor vehicle credit, and qualified plug-in electric drive motor vehicle credit.
✓ See Definitions on page 1 of the instructions.
Information About Your Eligible Child or Children—You must complete this part. See page 2 of the
instructions for details, including what to do if you need more space.
Check if child was—
(a)
Child’s name
1
First
Child
1
Child
2
(b)
Child’s year
of birth
(c)
(d)
born before
a child
1992 and with special
disabled
needs
Last
(e)
a
foreign
child
(f)
Child’s
identifying number
Caution. If the child was a foreign child, see Special rules in the instructions for line 1, column (e), that begin on page 2, before you
complete Part II or Part III. If you received employer-provided adoption benefits, complete Part III on the back next.
Part II
Adoption Credit
Child 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Maximum adoption credit per child . . .
Did you file Form 8839 for a prior year for
the same child?
No. Enter -0-.
Yes. See page 3 of the instructions for
the amount to enter.
Subtract line 3 from line 2 . . . . . .
Qualified adoption expenses (see page 3
of the instructions) . . . . . . . . .
Caution. Your qualified adoption expenses may not
be equal to the adoption expenses you paid in 2009.
2
Child 2
00
$12,150
00
3
4
5
Enter the smaller of line 4 or line 5 . . .
6
Add the amounts on line 6. If zero, skip lines 8 through 11 and enter -0- on line 12 . . . . .
8
Modified adjusted gross income (see page 3 of the instructions) .
Is line 8 more than $182,180?
No. Skip lines 9 and 10, and enter -0- on line 11.
Yes. Subtract $182,180 from line 8 . . . . . . . . .
9
Divide line 9 by $40,000. Enter the result as a decimal (rounded to at least three places).
Do not enter more than 1.000 . . . . . . . . . . . . . . . . . . . . . .
Multiply line 7 by line 10 . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 11 from line 7 . . . . . . . . . . . . . . . . . . . . . . .
Credit carryforward from prior years (line 23 of your Credit Carryforward Worksheet on page 5
of the 2008 Form 8839 instructions) . . . . . . . . . . . . . . . . . . . .
Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . . . . . .
15
Enter the amount from Form 1040, line 46, or Form 1040NR, line 43
1040
Enter the total of any amounts from Form 1040, lines 47 through 50;
filers: Form 5695, line 11; and line 12 of the Line 11 Worksheet in Pub. 972
(see page 3 of the instructions); Form 8396, line 11; Form 8834, line
22; Form 8910, line 21; Form 8936, line 14; and Schedule R, line 24.
16
1040NR Enter the total of any amounts from Form 1040NR, lines 44 through
46; Form 5695, line 11; and line 12 of the Line 11 Worksheet in
filers:
Pub. 972 (see page 3 of the instructions); Form 8396, line 11; Form
8834, line 22; Form 8910, line 21; and Form 8936, line 14.
Subtract line 16 from line 15
. . . . . . . . . . . . . . . . . . . . . .
Adoption credit. Enter the smaller of line 14 or line 17 here and include on Form 1040, line 52,
or Form 1040NR, line 48. Check box b on that line. If line 17 is smaller than line 14, you may
have a credit carryforward (see page 5 of the instructions) . . . . . . . . . . . . .
For Paperwork Reduction Act Notice, see page 6 of the instructions.
¶1106
$12,150
Cat. No. 22843L
7
10
11
12
.
13
14
17
18
Form 8839 (2009)
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
Page 2
Form 8839 (2009)
Part III
Employer-Provided Adoption Benefits
Child 1
Maximum exclusion per child
20
Did you receive employer-provided
adoption benefits for a prior year for the
same child?
No. Enter -0-.
Yes. See page 6 of the instructions for
the amount to enter.
Subtract line 20 from line 19
. . . . .
22
Child 2
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21
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24
Enter the smaller of line 21 or line 22. But if
the child was a child with special needs and
the adoption became final in 2009, enter the
amount from line 21 . . . . . . . .
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$12,150
00
20
21
Employer-provided adoption benefits you
received in 2009. This amount should be
shown in box 12 of your 2009 Form(s) W-2
with code T . . . . . . . . . . .
Add the amounts on line 22 .
$12,150
19
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23
22
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23
24
Add the amounts on line 24. If zero, skip lines 26 through 29, enter
-0- on line 30, and go to line 31 . . . . . . . . . . .
25
Modified adjusted gross income (from
the worksheet on page 6 of the
26
instructions) . . . . . . . . .
Is line 26 more than $182,180?
No. Skip lines 27 and 28, and
enter -0- on line 29.
Yes. Subtract $182,180 from line
27
26 . . . . . . . . . . .
Divide line 27 by $40,000. Enter the result as a decimal (rounded to
at least three places). Do not enter more than 1.000 . . . . .
28
29
Multiply line 25 by line 28
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29
30
Excluded benefits. Subtract line 29 from line 25 .
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30
31
Taxable benefits. Is line 30 more than line 23?
No. Subtract line 30 from line 23. Also, include this amount, if more than zero, on
line 7 of Form 1040 or line 8 of Form 1040NR. On the dotted line next to line
7 of Form 1040 or line 8 of Form 1040NR, enter “AB.”
Yes. Subtract line 23 from line 30. Enter the result as a negative number. Reduce
the total you would enter on line 7 of Form 1040 or line 8 of Form 1040NR by
the amount on Form 8839, line 31. Enter the result on line 7 of Form 1040 or
line 8 of Form 1040NR. Enter “SNE” on the dotted line next to the entry line.
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31
25
26
27
28
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You may be able to claim the adoption credit in Part II on the front of this form if any of the following apply.
● You paid adoption expenses in 2008, those expenses were not fully reimbursed by your employer or otherwise, and
the adoption was not final by the end of 2008.
● The total adoption expenses you paid in 2009 were not fully reimbursed by your employer or otherwise, and the
adoption became final in 2009 or earlier.
● You adopted a child with special needs and the adoption became final in 2009.
Form 8839 (2009)
¶1106
136
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
STUDY QUESTIONS
6.
In 2009, Sue Sheldon, a single taxpayer with
modified AGI of $55,000, pays college tuition of
$10,000 for her son (there are no other students in
the family). Her maximum lifetime learning credit
is:
a. $1,000
b. $2,000
c. $2,500
7.
PRACTICE POINTER: The credit applies in addition
to any other benefit for making the contribution
(i.e., the exclusion for salary reduction contributions
in 401(k) plans and a deduction for contributions
to traditional IRAs). It is a true case of allowable
“double-dipping.”
The retirement savings contributions credit is figured
on Form 8880, Credit for Qualified Retirement Savings
Contributions.
All of the following are qualified expenses for the
adoption credit except:
PRACTICE POINTER: The retirement savings contri-
butions credit can be used to offset the alternative
minimum tax.
a. Surrogate parenting costs
b. Adoption fees
c. Court costs
¶1107A Credit for Health Insurance Costs
of Eligible Individuals (Sec. 35)
¶1107 Retirement Savings Contributions
Credit (Sec. 25B)
This credit is designed to encourage modest-income taxpayers to make contributions to IRAs and qualified retirement
plans. The maximum contributions taken into account in
figuring the credit are $2,000 a person ($4,000 on a joint
return). The maximum credit for one person is $1,000.
The credit can be claimed only by those who are at least
age 18 and are not dependents or full-time students.
Percentage limitation. The amount of the credit that can
be claimed depends on an individual’s filing status and
adjusted gross income, as shown in the following chart.
Eligible individuals can claim a tax credit of up to 65%
(80% for coverage months beginning on or after May 1,
2009, and before 2011) of the cost of COBRA coverage
or insurance in state-run programs with no dollar limit.
The credit is refundable (it can be recouped in excess
of taxes owed by an eligible individual). Alternatively,
eligible individuals can opt to have the credit applied
toward the payment of premiums, so that no additional
credit is claimed on the return.
Eligible individuals. Two main classes of individuals are
eligible for the credit: displaced workers receiving trade
readjustment allowances and retirees age 55 or older
who are receiving payments from the Pension Benefit
Guaranty Corporation (PBGC).
Adjusted Gross Income
Joint Return
Over
Not Over
Heads of Household
Over
Not Over
Over
Not Over
Applicable Percentage
$0
$33,000
$0
24,750
$0
$16,500
50
33,000
36,000
24,750
27,000
16,500
18,000
20
36,000
55,500
27,000
41,625
18,000
27,750
10
55,500
41,625
EXAMPLE: In 2009, Larry Rich, a married taxpayer,
has a salary of $25,000. He makes a salary reduction contribution to his company’s 401(k) plan of
$2,000. His AGI (on a joint return filed with his
spouse) is $32,000. Larry may claim a tax credit of
$1,000 (50% of contributions up to $2,000). Thus,
his out-of-pocket cost for making the salary reduction contribution is cut in half because the tax credit
replaced half of his spendable income.
¶1107
Other Taxpayers
27,750
0
The health insurance costs credit is figured on Form
8885, Health Insurance Credit for Eligible Participants.
¶1107B Credits for Individual Energy Incentives
(Secs. 25C, 25D, and 30B)
To encourage energy conservation measures, individuals
can claim certain credits.
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
In
2009 and 2010, certain energy improvements to a principal residence can qualify for a tax credit of 30% of eligible
costs up to a top credit over these two years of $1,500. In
the past there were specific dollar limits on various types
of improvements; they no longer apply. The credit applies
to insulation systems that reduce heat loss or gain, exterior
windows (including skylights), exterior doors, and metal
roofs (meeting Energy Star requirements).
Energy-efficient home improvements (Sec. 25C).
The basis of the residence must be reduced by any credit
claimed. The credit is figured on Form 5695, Residential
Energy Credit.
PITFALL: Energy improvements to a vacation home
and rental dwelling units do not qualify for the credit.
NOTE: The credit applies only through 2010 unless
137
Credit for residential alternative energy expenditures
(Sec. 25D). There is a 30% credit for solar and fuel cell
equipment installed on a principal residence before
January 1, 2016, for the installation of solar panels, wind
energy, fuel cell plants and certain other types of renewal
energy for the home (e.g., geothermal heat pumps).
EXAMPLE: Harriet Meade spends $14,500 installing
solar energy panels to her home in 2009. Harriet can
claim a credit in 2009 of $4,350 (30% of $14,500).
NOTE: The credit for residential alternative energy
expenditures applies only through 2016, unless
Congress extends it.
The basis of the residence must be reduced by any
credit claimed. The residential alternative energy credit
is claimed on Form 5695.
Congress extends it.
¶1107B
138
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Form
Residential Energy Credits
5695
Department of the Treasury
Internal Revenue Service
Name(s) shown on return
OMB No. 1545-0074
2009
See instructions.
Attach to Form 1040 or Form 1040NR.
Attachment
Sequence No. 158
Your social security number
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Before You Begin Part I: Figure the amount of any credit for the elderly or the disabled you are claiming.
Part I
1
Nonbusiness Energy Property Credit (See instructions before completing this part.)
Were the qualified energy efficiency improvements or residential energy property costs for your
main home located in the United States? (see instructions) . . . . . . . . . . . . 1
Yes
No
Caution: If you checked the “No” box, you cannot claim the nonbusiness energy property credit.
Do not complete Part I.
2
a
Qualified energy efficiency improvements (see instructions).
Insulation material or systems specifically and primarily designed to reduce heat loss or gain in
your home . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b Exterior windows including skylights . . . . . . . . . . . . . . . . . . . . .
c Exterior doors . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d Metal or asphalt roof with appropriate pigmented coatings or cooling granules that meet the
Energy Star program requirements and is specifically and primarily designed to reduce heat gain
in your home . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Residential energy property costs (see instructions).
a Energy-efficient building property . . . . . . . . . . . . . . . .
b Qualified natural gas, propane, or oil furnace or hot water boiler . . . . . .
c Advanced main air circulating fan used in a natural gas, propane, or oil furnace .
2a
2b
2c
2d
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3b
3c
4
Add lines 2a through 3c .
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4
5
Multiply line 4 by 30% (.30) .
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5
6
Maximum credit amount. (If you jointly occupied the home, see instructions) .
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6
7
Enter the smaller amount of line 5 or line 6 .
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7
8
Enter the amount from Form 1040, line 46, or Form 1040NR, line 43
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8
9
Enter the total, if any, of your credits from Form 1040, lines 47 through
50, and Schedule R, line 24; or Form 1040NR, lines 44 through 46 . .
9
Subtract line 9 from line 8. If zero or less, stop. You cannot take the nonbusiness energy property
credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nonbusiness energy property credit. Enter the smaller of line 7 or line 10 . . . . . . . .
10
11
10
11
For Paperwork Reduction Act Notice, see instructions.
¶1107B
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Cat. No. 13540P
$1,500
Form 5695 (200
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
Alternative motor vehicle credit (Sec. 30B). This credit
is composed of four components:
Qualified fuel cell motor vehicle credit
Advanced lean burn technology motor vehicle
credit
Qualified hybrid motor vehicle credit
Qualified alternative-fuel motor vehicle credit
The maximum credit varies depending on the vehicle purchased (there is a higher
credit for a fuel cell vehicle, depending on the weight and
fuel economy of the vehicle). However, not every vehicle
qualifies for the maximum amount. For example, the IRS
has certified a number of vehicles for the hybrid vehicle
credit. A complete list can be found at www.irs.gov/newsroom/
article/0,,id=157557,00.html. Additionally, the instructions to Form 8910, Alternative Motor Vehicle Credit,
contain the amounts of the maximum credits for listed
vehicles.
Plug-in conversion credit.
The top allowable credit for hybrid vehicles is reduced
when a manufacturer’s sales exceed 60,000 vehicles. The
credit is limited to 50% starting in the second quarter
after the 60,000th vehicle sale and 25% in the fourth
quarter after the 60,000th vehicle sale.
EXAMPLE: Toyota (which includes Lexus) sold its
60,000th hybrid vehicle in June 2006, so no credit
can be claimed for any Toyota purchased after 2007.
Honda sold its 60,000th hybrid vehicle during the
quarter ending on September 30, 2007. Its vehicles
purchased in January–June 2008 have a 50% credit;
those purchased in July–December 2008 have a 25%
credit; no credit can be claimed for a Toyota purchased
on or after January 1, 2009. Ford reached the 60,000
vehicle mark in the fourth quarter of 2008, so a 50%
credit applies for vehicles purchased in April through
September 2009, a 25% credit for October 2009
through March 2010, and no credit for any Ford vehicle
purchased on or after April 1, 2010.
For 2009 and 2010, the alternative motor vehicle
credit is treated as a nonrefundable personal credit for
purposes of the alternative minimum tax
Credit for plug-in electric vehicles (Sec. 30D). There is
a credit for the purchase of an electric-powered vehicle of
$2,500, plus an additional $417 for each kilowatt hour
of traction battery capacity in excess of four kilowatt
hours; the top credit is between $7,500 and $15,000,
depending on the vehicle’s weight.
139
NEW FOR 2010: The credit for plug-in electric
vehicles is capped at $7,500. If the vehicle does not
have a battery capacity of at least 5 kilowatt hours,
the credit is $2,500.
There is also a credit for the cost of acquiring a twowheeled, three-wheeled or low-speed electric vehicle,
such as a motorcycle. And there is a credit for the cost
of converting a gas-powered vehicle to electric power.
If the vehicle is used partly for personal driving and
partly for business, the personal portion is treated as a
nonrefundable personal credit. This credit portion can
be used to offset both regular tax and the alternative
minimum tax.
The credit for plug-in electric vehicles is claimed on
Form 8834, Qualified Plug-in Electric and Electric Vehicle
Credit.
¶1108 General Business Credit (Sec. 38)
The general business credit is the combining of several
business credits into one grouping to have a uniform limitation on the amount that can be offset against tax liability,
as well as uniform carryback-carryover rules. Some of the
credits that compose the general business credit are:
Investment credit (including rehabilitation credit,
energy credit) (¶1109)
Energy efficient home credit
Energy efficient appliance credit
Alternative motor vehicle credit
Plug-in electric vehicle credit (the portion of the vehicle
used for business is part of the general business credit)
Research credit (¶1111)
Low-income housing credit (¶1116)
Disabled access credit (¶1112)
Electricity from renewable resources (¶1118)
Indian employment credit (¶1110)
New markets credit (¶1118)
Small employers’ pension plan start-up cost credit
(¶1118)
Employer-provided child care facilities credit
(¶1118)
Wage differential payment credit (¶1110)
Agricultural chemicals security credit (¶1118)
NOTE: The research credit, Indian employment
credit, and new markets credit expire at the end of
2009, but may be extended by Congress.
¶1108
140
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
For a complete list of credits available under the general
business credit, see Form 3800, General Business Credit,
and its instructions.
permanently disabled, and mortgage credit certificates),
the foreign tax credit, and the nonconventional source
fuel credit.
To determine the general business credit, each of the
above credits is computed separately. Then, the totals of
these credits are combined to apply the maximum tax
liability and carryback-carryover rules.
When the general business credit exceeds the tax liability
limitation in any year, the excess is an unused business
credit. The year is referred to as an unused credit year.
An unused business credit can be carried back to the 1
year preceding the unused credit year and forward to the
20 years after that year.
The general business credit is limited to the taxpayer’s net
tax liability reduced by (1) tentative minimum tax or (2)
25% of taxpayer’s tax liability over $25,000, if this amount
is larger. For this purpose, the net tax liability is equal to
the tax liability less certain nonrefundable credits (child
tax credit, education credit, and adoption credit). These
credits include the personal credits (child care, elderly and
¶1108
NOTE: When the taxpayer can take two or more of the
credits that are part of the general business credit, Form
3800, General Business Credit, must be completed.
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
Form
General Business Credit
3800
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on return
Part I
Current Year Credit
141
OMB No. 1545-0895
2009
See separate instructions.
Attach to your tax return.
Attachment
Sequence No. 22
Identifying number
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Important: You may not be required to complete and file a separate credit form (shown in parentheses below) to claim the cred
For details, see the instructions.
1a
b
c
d
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g
h
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k
l
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n
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q
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w
x
y
z
aa
Investment credit (Form 3468, Part II only) (attach Form 3468) . . . . . . . . . . .
Welfare-to-work credit (only from partnerships, S corporations, estates, and trusts) . . . .
Credit for increasing research activities (Form 6765) . . . . . . . . . . . . . .
Low-income housing credit (Form 8586, Part I only) (enter EIN if claiming this credit from a
) . . . . . . . . . . . . . . . .
pass-through entity:
Disabled access credit (Form 8826) (do not enter more than $5,000) . . . . . . . . .
Renewable electricity production credit (Form 8835) . . . . . . . . . . . . . .
Indian employment credit (Form 8845) . . . . . . . . . . . . . . . . . . .
Orphan drug credit (Form 8820) . . . . . . . . . . . . . . . . . . . . .
New markets credit (Form 8874) (enter EIN if claiming this credit from a pass-through entity:
)
. . . . . . . . . . . . . . . . . . . . . . .
Credit for small employer pension plan startup costs (Form 8881) (do not enter more than $500)
Credit for employer-provided child care facilities and services (Form 8882) (enter EIN if
)
claiming this credit from a pass-through entity:
. . . . .
Biodiesel and renewable diesel fuels credit (attach Form 8864)
. . . . . . . . . .
Low sulfur diesel fuel production credit (Form 8896) . . . . . . . . . . . . . .
Distilled spirits credit (Form 8906) . . . . . . . . . . . . . . . . . . . .
Nonconventional source fuel credit (Form 8907) . . . . . . . . . . . . . . .
Energy efficient home credit (Form 8908) . . . . . . . . . . . . . . . . . .
Energy efficient appliance credit (Form 8909) . . . . . . . . . . . . . . . .
Alternative motor vehicle credit (Form 8910) (enter EIN if claiming this credit from a
)
pass-through entity:
. . . . . . . . . . . . . . .
Alternative fuel vehicle refueling property credit (Form 8911) . . . . . . . . . . .
Credits for affected Midwestern disaster area employers (Form 5884-A)
. . . . . . .
Mine rescue team training credit (Form 8923) . . . . . . . . . . . . . . . .
Agricultural chemicals security credit (Form 8931) . . . . . . . . . . . . . . .
Credit for employer differential wage payments (Form 8932) . . . . . . . . . . .
Carbon dioxide sequestration credit (Form 8933) . . . . . . . . . . . . . . .
Qualified plug-in electric drive motor vehicle credit (Form 8936) . . . . . . . . . .
Qualified plug-in electric vehicle credit (Form 8834, Part I only)
. . . . . . . . . .
Credit for contributions to selected community development corporations (only from
partnerships and S corporations) . . . . . . . . . . . . . . . . . . . .
1a
1b
1c
1d
1e
1f
1g
1h
1i
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1k
1l
1m
1n
1o
1p
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1x
1y
1z
General credits from an electing large partnership (Schedule K-1 (Form 1065-B)) .
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1bb
2
Add lines 1a through 1bb .
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2
3
Passive activity credits included on line 2 (see instructions) .
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4
Subtract line 3 from line 2 .
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5
Passive activity credits allowed for 2009 (see instructions) .
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6
Carryforward of general business credit to 2009. See instructions for the schedule to attach .
6
7
Carryback of general business credit from 2010 (see instructions)
8
Current year credit. Add lines 4 through 7 .
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For Paperwork Reduction Act Notice, see separate instructions.
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8
Cat. No. 12392F
Form
3800
(20
¶1108
142
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Form 3800 (2009)
Part II
9
10
11
Page
Allowable Credit
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Regular tax before credits:
● Individuals. Enter the amount from Form 1040, line 44 or Form 1040NR, line 41 .
● Corporations. Enter the amount from Form 1120, Schedule J, line 2; or the
applicable line of your return . . . . . . . . . . . . . . . . . .
● Estates and trusts. Enter the sum of the amounts from Form 1041, Schedule G,
lines 1a and 1b, or the amount from the applicable line of your return . . . .
.
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9
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10
Alternative minimum tax:
● Individuals. Enter the amount from Form 6251, line 36 . . . . . . .
● Corporations. Enter the amount from Form 4626, line 14
. . . . . .
● Estates and trusts. Enter the amount from Schedule I (Form 1041), line 56 .
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Add lines 9 and 10 .
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12a Foreign tax credit . . . . . . . . . . . . . . . .
b Credits from Form 1040, lines 48 through 52 (or Form 1040NR, lines
45 through 48); Form 8859, line 11; Form 8834, lines 22 and 29;
Form 8910, line 21; Form 8911, line 23; Form 8936, line 14; and
Schedule R, line 24
. . . . . . . . . . . . . . .
c Add lines 12a and 12b . . . . . . . . . . . . . . .
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12a
13
Net income tax. Subtract line 12c from line 11. If zero, skip lines 14 through 17 and enter -0- on line 18a
14
Net regular tax. Subtract line 12c from line 9. If zero or less, enter -0-
14
15
Enter 25% (.25) of the excess, if any, of line 14 over $25,000 (see
instructions) . . . . . . . . . . . . . . . . . .
15
16
17
Tentative minimum tax:
● Individuals. Enter the amount from Form 6251, line 34 . . .
● Corporations. Enter the amount from Form 4626, line 12 . . .
● Estates and trusts. Enter the amount from Schedule I
(Form 1041), line 54 . . . . . . . . . . . . . .
Enter the greater of line 15 or line 16 .
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18a Subtract line 17 from line 13. If zero or less, enter -0- . . . . . . . . . . . . . .
b For a corporation electing to accelerate the research credit, enter the bonus depreciation
amount attributable to the research credit. (see instructions) . . . . . . . . . . . .
c Add lines 18a and 18b . . . . . . . . . . . . . . . . . . . . . . . .
18b
18c
19a
19a
Enter the smaller of line 8 or line 18c
. . . . . . . . . . . . . . . . . . .
Individuals, estates, and trusts: See the instructions for line 19a if claiming the research credit.
C corporations: See the line 19a instructions if there has been an ownership change,
acquisition, or reorganization.
b Enter the smaller of line 8 or line 18a. If you made an entry on line 18b, go to line 19c; otherwise,
skip line 19c (see instructions) . . . . . . . . . . . . . . . . . . . . . .
c Subtract line 19b from line 19a. This is the refundable amount for a corporation electing to
accelerate the research credit. Include this amount on line 32g of Form 1120 (or the applicable
line of your return) . . . . . . . . . . . . . . . . . . . . . . . . . .
18a
19b
19c
Form
¶1108
2
3800 (2009)
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
Certain business credits are not part of the general
business credit. These include:
Alcohol and biodiesel fuels credit (¶1118)
Work opportunity credit (¶1110)
Employer Social Security credit (¶1110)
Empowerment zone credit (¶1110)
¶1109 Rehabilitation Credit (Sec. 46)
A credit is allowed for rehabilitating qualified buildings
and qualified certified historic structures. A two-tier credit
structure applies 20% for rehabilitation of certified historic structures and 10% for rehabilitation of buildings
(other than certified historic structures) originally placed
in service before 1936. The credit, which is part of the
investment credit, is figured on Form 3468.
¶1110 Employment Credits
(Secs. 45A, 1396, and 1400L)
There are a number of different credits designed to
encourage employers to hire certain workers.
Work opportunity credit. There is a two-tiered credit for
hiring workers who are certified as belonging to a targeted
group. The credit is 40% of qualified first-year wages up to
$6,000 ($3,000 for qualified summer youth employees).
The maximum percentage applies to those performing at
least 400 hours of work. A reduced credit of 25% applies
for those who perform at least 120 hours but not 400 hours.
Thus, the maximum credit for those meeting the 400-hour
requirement is $2,400. Targeted groups include:
Qualified public assistance recipients
Qualified veterans (wages up to $12,000 can be taken
into account for certain veterans)
Qualified ex-felons
High-risk youths
Vocational rehabilitation referrals
Qualified summer youths
Qualified food stamp recipients
Supplemental Security Income (SSI) recipients
Liberty Zone employees
Hurricane Katrina employees
Unemployed veterans
Disconnected youth
Also included as part of the work opportunity credit is the
former group that had been covered under the welfare-towork credit: long-term family assistance recipients.
An employer must receive written certification of eligibility from the designated local agency on or before
143
the individual is offered work, and, within 21 days after
the individual begins work, the employer submits the
prescreening notice to the designated agency.
The credit is figured on Form 5884, Work Opportunity
Credit.
PRACTICE POINTER: An employer must obtain
pre-certification from the state agency attesting to
the employee’s eligibility. This pre-certification is
obtained on Form 8850.
Employer credit for FICA on tips. An employer of a food
or beverage establishment can claim a full credit for the
employer portion of FICA paid on cash tips in excess of
those treated as wages for purposes of satisfying the minimum wage provisions of the Fair Labor Standards Act. An
employer claiming this credit cannot deduct the FICA. The
credit applies regardless of whether the food or beverages
are for consumption on or off the premises of the establishment. The credit is based on the old federal minimum
wage of $5.15 per hour (even though the minimum wage
is $6.55 from January 1, 2009, through July 23, 2009,
and $7.25 from July 24, 2009, and thereafter). The credit
is figured in Form 8846, Credit for Employer Social Security
and Medicare Taxes Paid on Certain Employee Tips.
Empowerment zone employment credit. This is a 20%
credit on the first $15,000 of wages paid to full-time or
part-time workers (“qualified employees”) who reside
in designated empowerment zones and who perform
substantially all their work within the zone. Thus, the
maximum credit is $3,000 per employee per year. The
deduction for wages is reduced by the amount of the credit
in the same way as for the targeted jobs credit. Certain
individuals are not treated as qualified employees.
This is a credit of
20% of qualified payments up to $20,000. Qualified
payments are those made by a small employer (fewer than
50 employees) to an employee called to active duty.
Wage differential payment credit.
Indian employment credit. In 2008 and 2009, a 20%
credit applies to wages and health care costs in excess of
those amounts paid in 1993.
If so, only the first $20,000 of wages and health care costs
can be taken into account. The credit can be claimed only
with respect to an employee who is an enrolled member
of an Indian tribe, or the spouse of such person, and who
lives and works on an Indian reservation.
¶1110
144
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
PRACTICE POINTER: The employment credits (work
NOTE: The research credit is available only through
opportunity credit, employer credit for FICA on tips,
empowerment zone employment credit, wage differential payment credit, and the Indian employment
credit) all reduce the employer’s deduction for salary
and wages.
2009 unless Congress extends it.
The credit is figured in Form 8845, Indian Employment
Credit.
NOTE: The Indian employment credit expires at the
end of 2009 unless Congress extends it.
Renewal community employment tax credit. A credit of
15% will apply to the first $10,000 of qualified wages paid
to full-time or part-time employees within a designated
community (for a top credit of $1,500 per employee). The
credit is set to expire on December 31, 2009.
¶1111 Tax Credit for Research
and Experimentation (Sec. 41)
In 2008 and 2009, there is a 20% tax credit for incremental research and experimentation expenditures. The
credit applies to 20% of the excess of the taxpayer’s qualified research expenses for the tax year over the research
expenses in the base period (generally the 4 immediately
preceding tax years). A special rule applies for determining the base period in the case of start-up companies.
The term “qualified research” has the same meaning as the
term “research or experimental” has under Code Sec. 174
(see ¶1706), except that it does not include (1) research
outside the United States, (2) research in the social sciences or humanities, or (3) research to the extent funded
by any grant, contract, or otherwise by another person or
governmental entity.
Qualified research expenses cover two types of expenses
paid or incurred in carrying on any trade or business:
(1) in-house research expenses and (2) contract research
expenses.
Simplified alternative research credit. There is another
way to figure the credit, which is not based on gross receipts
(it is especially helpful to start-ups). The credit is 14% of
qualified research expenses that exceed 50% of the average
qualified research expenses for the preceding tax years.
The credit is figured on Form 6765, Credit for Increasing
Research Activities.
¶1111
¶1112 Disabled Access Credit (Sec. 44)
Small business owners (with gross receipts not over $1
million or, in some cases, with not more than 30 full-time
employees) may claim a credit of 50% of expenditures
incurred to make the business accessible to disabled individuals. The credit applies to expenditures over $250, but
not over $10,250, for a top credit of $5,000. Qualifying
expenditures include the costs of removing barriers on
business property that impede access by those with disabilities. They also include the costs of special materials
or assistance to visually or hearing-impaired persons and
of adapting equipment for disabled persons.
The disabled access credit is figured on Form 8826,
Disabled Access Credit.
¶1113 Earned Income Credit (Sec. 32)
The earned income credit is designed to aid low-income
individuals. It works like a negative income tax; the credit
can be claimed even if it exceeds tax liability.
The basic earned income credit is allowed at the rate of 34%
for an individual with one “qualifying child,” 40% for an individual with two “qualifying children,” 45% for an individual
with three or more “qualifying children,” and 7.65% for an
individual with no qualifying children. The earned income
amount against which the percentage is applied is $8,950
for an individual with one qualifying child, $12,570 for an
individual with two or more qualifying children, and $5,970
for an individual with no qualifying children.
The maximum earned income credit is $3,043 for an individual with one qualifying child, $5,028 for an individual
with two qualifying children, $5,657 for an individual with
three or more qualifying children, and $457 for an individual
with no qualifying children.
Phaseout. The credit starts to phase out when adjusted
gross income (or earned income, if greater) exceeds
certain levels: $16,420 for an individual with at least
one qualifying child ($21,420 on a joint return) and
$7,470 ($12,470 on a joint return) for an individual
with no qualifying children. The credit phases out at
the rate of 15.98% for an individual with one qualifying child, 21.06% for an individual with two or more
qualifying children, and 7.65% for an individual with no
qualifying children. Thus, the credit is completely phased
out when adjusted gross income (or earned income, if
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
greater) exceeds $35,463 ($40,463 on a joint return)
for an individual with one qualifying child, $40,295
($45,295 on a joint return) for an individual with two
qualifying children, $43,281 ($48,281) for an individual
with three or more qualifying children, and $13,440
($18,440 on a joint return) for an individual with no
qualifying children.
Figuring the amount of the credit is discussed below.
Low-income individuals may
lose the opportunity to claim the earned income credit
if unearned income exceeds a threshold amount. The
limit on unearned income is $3,100. Unearned income
for this purpose includes dividends, interest (taxable and
tax-exempt), net rent and royalty income (if greater than
zero), net capital gains, and net passive income (if not
zero) that is not self-employment income).
145
Identification requirements. The name and age of each
qualifying child must be reported on the return. In addition, a Social Security number is required for each child.
PITFALL: Income tax return preparers who fail to
meet due diligence requirements (as defined by regulations to be issued) for claiming the earned income
credit may be subject to a $100 penalty in addition
to any other penalties that may be imposed.
Unearned income limit.
Eligibility. In addition to income limits discussed above,
there are additional eligibility requirements for those
individuals without a qualifying child. See ¶305. To claim
the credit, the taxpayer must have a principal residence
in the United States for more than one-half of the year
and must be authorized to work in the United States.
The taxpayer must be at least 25 years old but not more
than 64 years old at the end of the year. If the individual
is married, either the individual or the spouse must meet
the age requirement. The taxpayer cannot have been
claimed as a dependent of another taxpayer in the year
for which the credit is claimed. Married persons filing
separately are not eligible for the credit.
PRACTICE POINTER: The definition of a qualifying
child under the earned income credit mirrors the
definition of a qualifying child for the dependency
exemption. Thus, for example, the qualifying child
must be younger than the taxpayer (unless the child
is totally and permanently disabled).
Earned income defined. For purposes of this credit, the
term “earned income” means wages, salary, tips, other
employee compensation, and net earnings from selfemployment. Pensions and annuities are not treated as
earned income for this purpose. Earned income is figured
without regard to any community property law.
Military personnel can elect to treat nontaxable combat
pay as earned income for purposes of the credit. This
option has become permanent with the passage of recent
legislation.
Individuals claiming the earned
income credit for a qualifying child must complete
Schedule EIC. The schedule is used to provide information about the qualifying child or children upon
which the credit is claimed. The schedule is not used to
compute the credit.
Figuring the credit.
The credit is computed on a worksheet in the instructions to Form 1040 called “Earned Income Credit
Worksheet” (with information figured on a supplemental worksheet called “EIC Worksheet”). The exact
amount of the credit is taken from an “Earned Income
Credit Table.” Alternatively, individuals eligible for
the credit can have the IRS compute it after providing
certain information.
¶1113
146
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
SCHEDULE EIC
Earned Income Credit
(Form 1040A or 1040)
1040A
..........
Qualifying Child Information
Before you begin:
!
CAUTION
2009
1040
Complete and attach to Form 1040A or 1040
only if you have a qualifying child.
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on return
OMB No. 1545-0074
EIC
Attachment
Sequence No. 43
Your social security number
f
o
s
a
9
t
0
f
0
a
2
r
/
D /02
9
0
● See the instructions for Form 1040A, lines 41a and 41b, or Form 1040, lines 64a and 64b, to make
sure that (a) you can take the EIC, and (b) you have a qualifying child.
● Be sure the child’s name on line 1 and social security number (SSN) on line 2 agree with the child’s social security card.
Otherwise, at the time we process your return, we may reduce or disallow your EIC. If the name or SSN on the child’s
social security card is not correct, call the Social Security Administration at 1-800-772-1213.
● If you take the EIC even though you are not eligible, you may not be allowed to take the credit for up to 10 years. See back of schedule
for details.
● It will take us longer to process your return and issue your refund if you do not fill in all lines that apply for each qualifying child.
Child 1
Qualifying Child Information
1 Child’s name
First name
Child 2
Last name
First name
Child 3
First name
Last name
Last name
If you have more than three qualifying
children, you only have to list three to get
the maximum credit.
2 Child’s SSN
The child must have an SSN as defined on
page 43 of the Form 1040A instructions or
page 50 of the Form 1040 instructions
unless the child was born and died in
2009. If your child was born and died in
2009 and did not have an SSN, enter
“Died” on this line and attach a copy of
the child’s birth certificate, death
certificate, or hospital medical records.
3 Child’s year of birth
Year
Year
If born after 1990 and the child was younger
than you, skip lines 4a and 4b; go to line 5.
Year
If born after 1990 and the child was younger
than you, skip lines 4a and 4b; go to line 5.
If born after 1990 and the child was younger
than you, skip lines 4a and 4b; go to line 5.
4 a Was the child under age 24 at the end of
2009, a student, and younger than you?
Yes.
Go to line 5.
b Was the child permanently and totally
disabled during any part of 2009?
Yes.
Continue.
No.
Yes.
Continue.
No.
Go to line 5.
Yes.
The child is not a
qualifying child.
Continue.
No.
Yes.
Continue.
No.
Go to line 5.
Yes.
The child is not a
qualifying child.
Continue.
No.
Continue.
No.
The child is not a
qualifying child.
5 Child’s relationship to you
(for example, son, daughter, grandchild,
niece, nephew, foster child, etc.)
6 Number of months child lived
with you in the United States
during 2009
● If the child lived with you for more than
half of 2009 but less than 7 months,
enter “7.”
● If the child was born or died in 2009 and
your home was the child’s home for the
entire time he or she was alive during
2009, enter “12.”
months
Do not enter more than 12
months.
For Paperwork Reduction Act Notice, see Form 1040A
or 1040 instructions.
¶1113
months
Do not enter more than 12
months.
Cat. No. 13339M
months
Do not enter more than 12
months.
Schedule EIC (Form 1040A or 1040) 2009
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
Worksheet
A—Earned Income Credit (EIC)—Lines 64a and 64b
147
Keep for Your Records
Before you begin: ⻫ Be sure you are using the correct worksheet. Use this worksheet only if you
answered “No” to Step 5, question 3, on page 50. Otherwise, use Worksheet B
that begins on page 53.
Part 1
All Filers Using
Worksheet A
1.
Enter your earned income from Step 5 on page 50.
2.
Look up the amount on line 1 above in the EIC Table on pages 55–71
to find the credit. Be sure you use the correct column for your filing
status and the number of children you have. Enter the credit here.
1
2
STOP
If line 2 is zero,
You cannot take the credit.
Enter “No” on the dotted line next to line 64a.
3.
Enter the amount from Form 1040, line 38.
4.
Are the amounts on lines 3 and 1 the same?
3
Yes. Skip line 5; enter the amount from line 2 on line 6.
No. Go to line 5.
5.
Part 2
Filers Who
Answered
“No” on
Line 4
Part 3
If you have:
● No qualifying children, is the amount on line 3 less than $7,500
($12,500 if married filing jointly)?
● 1 or more qualifying children, is the amount on line 3 less than
$16,450 ($21,450 if married filing jointly)?
Yes. Leave line 5 blank; enter the amount from line 2 on line 6.
No. Look up the amount on line 3 in the EIC Table on
pages 55–71 to find the credit. Be sure you use the correct
column for your filing status and the number of children
you have. Enter the credit here.
Look at the amounts on lines 5 and 2.
Then, enter the smaller amount on line 6.
6.
5
This is your earned income credit.
6
Enter this amount on
Form 1040, line 64a.
Your Earned
Income Credit
Reminder—
⻫
1040 䊴
If you have a qualifying child, complete and attach Schedule EIC.
1040
䊴
EIC
CAUTION
If your EIC for a year after 1996 was reduced or disallowed, see
page 50 to find out if you must file Form 8862 to take the credit for
2009.
¶1113
148
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Worksheet
B—Earned Income Credit (EIC)—Lines 64a and 64b
Keep for Your Records
Use this worksheet if you answered “Yes” to Step 5, question 3, on page 50.
⻫ Complete the parts below (Parts 1 through 3) that apply to you. Then, continue to Part 4.
⻫ If you are married filing a joint return, include your spouse’s amounts, if any, with yours to figure the amounts to
enter in Parts 1 through 3.
Part 1
Self-Employed,
Members of the
Clergy, and
People With
Church Employee
Income Filing
Schedule SE
Part 2
Self-Employed
NOT Required
To File
Schedule SE
For example, your
net earnings from
self-employment
were less than $400.
1a. Enter the amount from Schedule SE, Section A, line 3, or
Section B, line 3, whichever applies.
1a
b. Enter any amount from Schedule SE, Section B, line 4b, and line 5a.
+ 1b
c. Combine lines 1a and 1b.
= 1c
d. Enter the amount from Schedule SE, Section A, line 6, or
Section B, line 13, whichever applies.
– 1d
e. Subtract line 1d from 1c.
= 1e
2.
Do not include on these lines any statutory employee income, any net profit from services performed
as a notary public, any amount exempt from self-employment tax as the result of the filing and
approval of Form 4029 or Form 4361, or any income or loss from a qualified joint venture reporting
only rental real estate income not subject to self-employment tax.
a. Enter any net farm profit or (loss) from Schedule F, line 36, and from
farm partnerships, Schedule K-1 (Form 1065), box 14, code A*.
2a
b. Enter any net profit or (loss) from Schedule C, line 31; Schedule C-EZ,
line 3; Schedule K-1 (Form 1065), box 14, code A (other than farming);
and Schedule K-1 (Form 1065-B), box 9, code J1*.
+ 2b
c. Combine lines 2a and 2b.
= 2c
*Reduce any Schedule K-1 amounts by any partnership section 179 expense deduction claimed,
unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties. If you
have any Schedule K-1 amounts, complete the appropriate line(s) of Schedule SE, Section A. Enter
your name and social security number on Schedule SE and attach it to your return.
Part 3
Statutory Employees
Filing Schedule
C or C-EZ
Part 4
All Filers Using
Worksheet B
Note. If line 4b
includes income on
which you should
have paid selfemployment tax but
did not, we may
reduce your credit by
the amount of
self-employment tax
not paid.
3.
Enter the amount from Schedule C, line 1, or Schedule C-EZ, line 1, that
you are filing as a statutory employee.
4a. Enter your earned income from Step 5 on page 50.
b. Combine lines 1e, 2c, 3, and 4a. This is your total earned income.
If line 4b is zero or less,
5.
If
●
●
●
●
4a
4b
You cannot take the credit. Enter “No” on the dotted line next to line 64a.
you have:
3 or more qualifying children, is line 4b less than $43,279 ($48,279 if married filing jointly)?
2 qualifying children, is line 4b less than $40,295 ($45,295 if married filing jointly)?
1 qualifying child, is line 4b less than $35,463 ($40,463 if married filing jointly)?
No qualifying children, is line 4b less than $13,440 ($18,440 if married filing jointly)?
Yes. If you want the IRS to figure your credit, see page 50. If you want to
figure the credit yourself, enter the amount from line 4b on line 6 (page 54).
No.
¶1113
STOP
3
STOP
You cannot take the credit. Enter “No” on the dotted line next to line 64a.
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
Worksheet
B—Continued from page 53
Part 5
All Filers Using
Worksheet B
149
Keep for Your Records
6.
Enter your total earned income from Part 4, line 4b,
on page 53.
7.
Look up the amount on line 6 above in the EIC Table on pages 55–71
to find the credit. Be sure you use the correct column for your filing
status and the number of children you have. Enter the credit here.
6
7
If line 7 is zero, STOP You cannot take the credit.
Enter “No” on the dotted line next to line 64a.
8.
Enter the amount from Form 1040, line 38.
9.
Are the amounts on lines 8 and 6 the same?
8
Yes. Skip line 10; enter the amount from line 7 on line 11.
No. Go to line 10.
Part 6
10.
Filers Who
Answered
“No” on
Line 9
If you have:
● No qualifying children, is the amount on line 8 less than $7,500
($12,500 if married filing jointly)?
● 1 or more qualifying children, is the amount on line 8 less than $16,450
($21,450 if married filing jointly)?
Yes. Leave line 10 blank; enter the amount from line 7 on line 11.
No. Look up the amount on line 8 in the EIC Table on
pages 55–71 to find the credit. Be sure you use the correct
column for your filing status and the number of children
you have. Enter the credit here.
Look at the amounts on lines 10 and 7.
Then, enter the smaller amount on line 11.
Part 7
Your Earned
Income Credit
11.
10
This is your earned income credit.
11
Enter this amount on
Form 1040, line 64a.
Reminder—
⻫
If you have a qualifying child, complete and attach Schedule EIC.
1040 䊴
EIC
CAUTION
1040
䊴
If your EIC for a year after 1996 was reduced or disallowed, see
page 50 to find out if you must file Form 8862 to take the credit for
2009.
¶1113
150
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Earned Income Credit (EIC) Table
Caution. This is not a tax table.
1. To find your credit, read
down the “At least - But less
than” columns and find the
line that includes the amount
you were told to look up from
your EIC Worksheet.
2. Then, go to the column
that includes your filing status
and the number of qualifying
children you have. Enter the
credit from that column on
your EIC Worksheet.
And your filing status is—
If the amount you are
looking up from the
worksheet is—
Example. If your filing status is
single, you have one qualifying
child, and the amount you are
looking up from your EIC
Worksheet is $2,455, you
would enter $842.
Single, head of
household, or qualifying
widow(er) and you have—
No
children
At least But less than
2,400
2,450
2,450
2,500
One
child
Two
Three
children children
Your credit is—
186
189
825
842
970
990
1,091
1,114
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
¶1113
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
$1
50
100
150
200
$50
100
150
200
250
$2
6
10
13
17
$9
26
43
60
77
$10
30
50
70
90
$11
34
56
79
101
$2
6
10
13
17
$9
26
43
60
77
$10
30
50
70
90
$11
34
56
79
101
250
300
350
400
450
300
350
400
450
500
21
25
29
33
36
94
111
128
145
162
110
130
150
170
190
124
146
169
191
214
21
25
29
33
36
94
111
128
145
162
110
130
150
170
190
124
146
169
191
214
500
550
600
650
700
550
600
650
700
750
40
44
48
52
55
179
196
213
230
247
210
230
250
270
290
236
259
281
304
326
40
44
48
52
55
179
196
213
230
247
210
230
250
270
290
236
259
281
304
326
750
800
850
900
950
800
850
900
950
1,000
59
63
67
71
75
264
281
298
315
332
310
330
350
370
390
349
371
394
416
439
59
63
67
71
75
264
281
298
315
332
310
330
350
370
390
349
371
394
416
439
1,000
1,050
1,100
1,150
1,200
1,050
1,100
1,150
1,200
1,250
78
82
86
90
94
349
366
383
400
417
410
430
450
470
490
461
484
506
529
551
78
82
86
90
94
349
366
383
400
417
410
430
450
470
490
461
484
506
529
551
1,250
1,300
1,350
1,400
1,450
1,300
1,350
1,400
1,450
1,500
98
101
105
109
113
434
451
468
485
502
510
530
550
570
590
574
596
619
641
664
98
101
105
109
113
434
451
468
485
502
510
530
550
570
590
574
596
619
641
664
1,500
1,550
1,600
1,650
1,700
1,550
1,600
1,650
1,700
1,750
117
120
124
128
132
519
536
553
570
587
610
630
650
670
690
686
709
731
754
776
117
120
124
128
132
519
536
553
570
587
610
630
650
670
690
686
709
731
754
776
1,750
1,800
1,850
1,900
1,950
1,800
1,850
1,900
1,950
2,000
136
140
143
147
151
604
621
638
655
672
710
730
750
770
790
799
821
844
866
889
136
140
143
147
151
604
621
638
655
672
710
730
750
770
790
799
821
844
866
889
2,000
2,050
2,100
2,150
2,200
2,050
2,100
2,150
2,200
2,250
155
159
163
166
170
689
706
723
740
757
810
830
850
870
890
911
934
956
979
1,001
155
159
163
166
170
689
706
723
740
757
810
830
850
870
890
911
934
956
979
1,001
2,250
2,300
2,350
2,400
2,450
2,300
2,350
2,400
2,450
2,500
174
178
182
186
189
774
791
808
825
842
910
930
950
970
990
1,024
1,046
1,069
1,091
1,114
174
178
182
186
189
774
791
808
825
842
910
930
950
970
990
1,024
1,046
1,069
1,091
1,114
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
2009 Earned Income Credit (EIC) Table – Continued
151
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
2,500
2,550
2,600
2,650
2,700
2,550
2,600
2,650
2,700
2,750
193
197
201
205
208
859
876
893
910
927
1,010
1,030
1,050
1,070
1,090
1,136
1,159
1,181
1,204
1,226
193
197
201
205
208
859
876
893
910
927
1,010
1,030
1,050
1,070
1,090
1,136
1,159
1,181
1,204
1,226
2,750
2,800
2,850
2,900
2,950
2,800
2,850
2,900
2,950
3,000
212
216
220
224
228
944
961
978
995
1,012
1,110
1,130
1,150
1,170
1,190
1,249
1,271
1,294
1,316
1,339
212
216
220
224
228
944
961
978
995
1,012
1,110
1,130
1,150
1,170
1,190
1,249
1,271
1,294
1,316
1,339
3,000
3,050
3,100
3,150
3,200
3,050
3,100
3,150
3,200
3,250
231
235
239
243
247
1,029
1,046
1,063
1,080
1,097
1,210
1,230
1,250
1,270
1,290
1,361
1,384
1,406
1,429
1,451
231
235
239
243
247
1,029
1,046
1,063
1,080
1,097
1,210
1,230
1,250
1,270
1,290
1,361
1,384
1,406
1,429
1,451
3,250
3,300
3,350
3,400
3,450
3,300
3,350
3,400
3,450
3,500
251
254
258
262
266
1,114
1,131
1,148
1,165
1,182
1,310
1,330
1,350
1,370
1,390
1,474
1,496
1,519
1,541
1,564
251
254
258
262
266
1,114
1,131
1,148
1,165
1,182
1,310
1,330
1,350
1,370
1,390
1,474
1,496
1,519
1,541
1,564
3,500
3,550
3,600
3,650
3,700
3,550
3,600
3,650
3,700
3,750
270
273
277
281
285
1,199
1,216
1,233
1,250
1,267
1,410
1,430
1,450
1,470
1,490
1,586
1,609
1,631
1,654
1,676
270
273
277
281
285
1,199
1,216
1,233
1,250
1,267
1,410
1,430
1,450
1,470
1,490
1,586
1,609
1,631
1,654
1,676
3,750
3,800
3,850
3,900
3,950
3,800
3,850
3,900
3,950
4,000
289
293
296
300
304
1,284
1,301
1,318
1,335
1,352
1,510
1,530
1,550
1,570
1,590
1,699
1,721
1,744
1,766
1,789
289
293
296
300
304
1,284
1,301
1,318
1,335
1,352
1,510
1,530
1,550
1,570
1,590
1,699
1,721
1,744
1,766
1,789
4,000
4,050
4,100
4,150
4,200
4,050
4,100
4,150
4,200
4,250
308
312
316
319
323
1,369
1,386
1,403
1,420
1,437
1,610
1,630
1,650
1,670
1,690
1,811
1,834
1,856
1,879
1,901
308
312
316
319
323
1,369
1,386
1,403
1,420
1,437
1,610
1,630
1,650
1,670
1,690
1,811
1,834
1,856
1,879
1,901
4,250
4,300
4,350
4,400
4,450
4,300
4,350
4,400
4,450
4,500
327
331
335
339
342
1,454
1,471
1,488
1,505
1,522
1,710
1,730
1,750
1,770
1,790
1,924
1,946
1,969
1,991
2,014
327
331
335
339
342
1,454
1,471
1,488
1,505
1,522
1,710
1,730
1,750
1,770
1,790
1,924
1,946
1,969
1,991
2,014
4,500
4,550
4,600
4,650
4,700
4,550
4,600
4,650
4,700
4,750
346
350
354
358
361
1,539
1,556
1,573
1,590
1,607
1,810
1,830
1,850
1,870
1,890
2,036
2,059
2,081
2,104
2,126
346
350
354
358
361
1,539
1,556
1,573
1,590
1,607
1,810
1,830
1,850
1,870
1,890
2,036
2,059
2,081
2,104
2,126
4,750
4,800
4,850
4,900
4,950
4,800
4,850
4,900
4,950
5,000
365
369
373
377
381
1,624
1,641
1,658
1,675
1,692
1,910
1,930
1,950
1,970
1,990
2,149
2,171
2,194
2,216
2,239
365
369
373
377
381
1,624
1,641
1,658
1,675
1,692
1,910
1,930
1,950
1,970
1,990
2,149
2,171
2,194
2,216
2,239
5,000
5,050
5,100
5,150
5,200
5,050
5,100
5,150
5,200
5,250
384
388
392
396
400
1,709
1,726
1,743
1,760
1,777
2,010
2,030
2,050
2,070
2,090
2,261
2,284
2,306
2,329
2,351
384
388
392
396
400
1,709
1,726
1,743
1,760
1,777
2,010
2,030
2,050
2,070
2,090
2,261
2,284
2,306
2,329
2,351
5,250
5,300
5,350
5,400
5,450
5,300
5,350
5,400
5,450
5,500
404
407
411
415
419
1,794
1,811
1,828
1,845
1,862
2,110
2,130
2,150
2,170
2,190
2,374
2,396
2,419
2,441
2,464
404
407
411
415
419
1,794
1,811
1,828
1,845
1,862
2,110
2,130
2,150
2,170
2,190
2,374
2,396
2,419
2,441
2,464
¶1113
152
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Earned Income Credit (EIC) Table – Continued
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
¶1113
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
5,500
5,550
5,600
5,650
5,700
5,550
5,600
5,650
5,700
5,750
423
426
430
434
438
1,879
1,896
1,913
1,930
1,947
2,210
2,230
2,250
2,270
2,290
2,486
2,509
2,531
2,554
2,576
423
426
430
434
438
1,879
1,896
1,913
1,930
1,947
2,210
2,230
2,250
2,270
2,290
2,486
2,509
2,531
2,554
2,576
5,750
5,800
5,850
5,900
5,950
5,800
5,850
5,900
5,950
6,000
442
446
449
453
457
1,964
1,981
1,998
2,015
2,032
2,310
2,330
2,350
2,370
2,390
2,599
2,621
2,644
2,666
2,689
442
446
449
453
457
1,964
1,981
1,998
2,015
2,032
2,310
2,330
2,350
2,370
2,390
2,599
2,621
2,644
2,666
2,689
6,000
6,050
6,100
6,150
6,200
6,050
6,100
6,150
6,200
6,250
457
457
457
457
457
2,049
2,066
2,083
2,100
2,117
2,410
2,430
2,450
2,470
2,490
2,711
2,734
2,756
2,779
2,801
457
457
457
457
457
2,049
2,066
2,083
2,100
2,117
2,410
2,430
2,450
2,470
2,490
2,711
2,734
2,756
2,779
2,801
6,250
6,300
6,350
6,400
6,450
6,300
6,350
6,400
6,450
6,500
457
457
457
457
457
2,134
2,151
2,168
2,185
2,202
2,510
2,530
2,550
2,570
2,590
2,824
2,846
2,869
2,891
2,914
457
457
457
457
457
2,134
2,151
2,168
2,185
2,202
2,510
2,530
2,550
2,570
2,590
2,824
2,846
2,869
2,891
2,914
6,500
6,550
6,600
6,650
6,700
6,550
6,600
6,650
6,700
6,750
457
457
457
457
457
2,219
2,236
2,253
2,270
2,287
2,610
2,630
2,650
2,670
2,690
2,936
2,959
2,981
3,004
3,026
457
457
457
457
457
2,219
2,236
2,253
2,270
2,287
2,610
2,630
2,650
2,670
2,690
2,936
2,959
2,981
3,004
3,026
6,750
6,800
6,850
6,900
6,950
6,800
6,850
6,900
6,950
7,000
457
457
457
457
457
2,304
2,321
2,338
2,355
2,372
2,710
2,730
2,750
2,770
2,790
3,049
3,071
3,094
3,116
3,139
457
457
457
457
457
2,304
2,321
2,338
2,355
2,372
2,710
2,730
2,750
2,770
2,790
3,049
3,071
3,094
3,116
3,139
7,000
7,050
7,100
7,150
7,200
7,050
7,100
7,150
7,200
7,250
457
457
457
457
457
2,389
2,406
2,423
2,440
2,457
2,810
2,830
2,850
2,870
2,890
3,161
3,184
3,206
3,229
3,251
457
457
457
457
457
2,389
2,406
2,423
2,440
2,457
2,810
2,830
2,850
2,870
2,890
3,161
3,184
3,206
3,229
3,251
7,250
7,300
7,350
7,400
7,450
7,300
7,350
7,400
7,450
7,500
457
457
457
457
457
2,474
2,491
2,508
2,525
2,542
2,910
2,930
2,950
2,970
2,990
3,274
3,296
3,319
3,341
3,364
457
457
457
457
457
2,474
2,491
2,508
2,525
2,542
2,910
2,930
2,950
2,970
2,990
3,274
3,296
3,319
3,341
3,364
7,500
7,550
7,600
7,650
7,700
7,550
7,600
7,650
7,700
7,750
452
449
445
441
437
2,559
2,576
2,593
2,610
2,627
3,010
3,030
3,050
3,070
3,090
3,386
3,409
3,431
3,454
3,476
457
457
457
457
457
2,559
2,576
2,593
2,610
2,627
3,010
3,030
3,050
3,070
3,090
3,386
3,409
3,431
3,454
3,476
7,750
7,800
7,850
7,900
7,950
7,800
7,850
7,900
7,950
8,000
433
430
426
422
418
2,644
2,661
2,678
2,695
2,712
3,110
3,130
3,150
3,170
3,190
3,499
3,521
3,544
3,566
3,589
457
457
457
457
457
2,644
2,661
2,678
2,695
2,712
3,110
3,130
3,150
3,170
3,190
3,499
3,521
3,544
3,566
3,589
8,000
8,050
8,100
8,150
8,200
8,050
8,100
8,150
8,200
8,250
414
410
407
403
399
2,729
2,746
2,763
2,780
2,797
3,210
3,230
3,250
3,270
3,290
3,611
3,634
3,656
3,679
3,701
457
457
457
457
457
2,729
2,746
2,763
2,780
2,797
3,210
3,230
3,250
3,270
3,290
3,611
3,634
3,656
3,679
3,701
8,250
8,300
8,350
8,400
8,450
8,300
8,350
8,400
8,450
8,500
395
391
387
384
380
2,814
2,831
2,848
2,865
2,882
3,310
3,330
3,350
3,370
3,390
3,724
3,746
3,769
3,791
3,814
457
457
457
457
457
2,814
2,831
2,848
2,865
2,882
3,310
3,330
3,350
3,370
3,390
3,724
3,746
3,769
3,791
3,814
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
2009 Earned Income Credit (EIC) Table – Continued
153
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
8,500
8,550
8,600
8,650
8,700
8,550
8,600
8,650
8,700
8,750
376
372
368
365
361
2,899
2,916
2,933
2,950
2,967
3,410
3,430
3,450
3,470
3,490
3,836
3,859
3,881
3,904
3,926
457
457
457
457
457
2,899
2,916
2,933
2,950
2,967
3,410
3,430
3,450
3,470
3,490
3,836
3,859
3,881
3,904
3,926
8,750
8,800
8,850
8,900
8,950
8,800
8,850
8,900
8,950
9,000
357
353
349
345
342
2,984
3,001
3,018
3,035
3,043
3,510
3,530
3,550
3,570
3,590
3,949
3,971
3,994
4,016
4,039
457
457
457
457
457
2,984
3,001
3,018
3,035
3,043
3,510
3,530
3,550
3,570
3,590
3,949
3,971
3,994
4,016
4,039
9,000
9,050
9,100
9,150
9,200
9,050
9,100
9,150
9,200
9,250
338
334
330
326
322
3,043
3,043
3,043
3,043
3,043
3,610
3,630
3,650
3,670
3,690
4,061
4,084
4,106
4,129
4,151
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
3,610
3,630
3,650
3,670
3,690
4,061
4,084
4,106
4,129
4,151
9,250
9,300
9,350
9,400
9,450
9,300
9,350
9,400
9,450
9,500
319
315
311
307
303
3,043
3,043
3,043
3,043
3,043
3,710
3,730
3,750
3,770
3,790
4,174
4,196
4,219
4,241
4,264
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
3,710
3,730
3,750
3,770
3,790
4,174
4,196
4,219
4,241
4,264
9,500
9,550
9,600
9,650
9,700
9,550
9,600
9,650
9,700
9,750
299
296
292
288
284
3,043
3,043
3,043
3,043
3,043
3,810
3,830
3,850
3,870
3,890
4,286
4,309
4,331
4,354
4,376
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
3,810
3,830
3,850
3,870
3,890
4,286
4,309
4,331
4,354
4,376
9,750
9,800
9,850
9,900
9,950
9,800
9,850
9,900
9,950
10,000
280
277
273
269
265
3,043
3,043
3,043
3,043
3,043
3,910
3,930
3,950
3,970
3,990
4,399
4,421
4,444
4,466
4,489
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
3,910
3,930
3,950
3,970
3,990
4,399
4,421
4,444
4,466
4,489
10,000
10,050
10,100
10,150
10,200
10,050
10,100
10,150
10,200
10,250
261
257
254
250
246
3,043
3,043
3,043
3,043
3,043
4,010
4,030
4,050
4,070
4,090
4,511
4,534
4,556
4,579
4,601
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
4,010
4,030
4,050
4,070
4,090
4,511
4,534
4,556
4,579
4,601
10,250
10,300
10,350
10,400
10,450
10,300
10,350
10,400
10,450
10,500
242
238
234
231
227
3,043
3,043
3,043
3,043
3,043
4,110
4,130
4,150
4,170
4,190
4,624
4,646
4,669
4,691
4,714
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
4,110
4,130
4,150
4,170
4,190
4,624
4,646
4,669
4,691
4,714
10,500
10,550
10,600
10,650
10,700
10,550
10,600
10,650
10,700
10,750
223
219
215
212
208
3,043
3,043
3,043
3,043
3,043
4,210
4,230
4,250
4,270
4,290
4,736
4,759
4,781
4,804
4,826
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
4,210
4,230
4,250
4,270
4,290
4,736
4,759
4,781
4,804
4,826
10,750
10,800
10,850
10,900
10,950
10,800
10,850
10,900
10,950
11,000
204
200
196
192
189
3,043
3,043
3,043
3,043
3,043
4,310
4,330
4,350
4,370
4,390
4,849
4,871
4,894
4,916
4,939
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
4,310
4,330
4,350
4,370
4,390
4,849
4,871
4,894
4,916
4,939
11,000
11,050
11,100
11,150
11,200
11,050
11,100
11,150
11,200
11,250
185
181
177
173
169
3,043
3,043
3,043
3,043
3,043
4,410
4,430
4,450
4,470
4,490
4,961
4,984
5,006
5,029
5,051
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
4,410
4,430
4,450
4,470
4,490
4,961
4,984
5,006
5,029
5,051
11,250
11,300
11,350
11,400
11,450
11,300
11,350
11,400
11,450
11,500
166
162
158
154
150
3,043
3,043
3,043
3,043
3,043
4,510
4,530
4,550
4,570
4,590
5,074
5,096
5,119
5,141
5,164
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
4,510
4,530
4,550
4,570
4,590
5,074
5,096
5,119
5,141
5,164
¶1113
154
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Earned Income Credit (EIC) Table – Continued
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
11,500
11,550
11,600
11,650
11,700
11,550
11,600
11,650
11,700
11,750
146
143
139
135
131
3,043
3,043
3,043
3,043
3,043
4,610
4,630
4,650
4,670
4,690
5,186
5,209
5,231
5,254
5,276
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
4,610
4,630
4,650
4,670
4,690
5,186
5,209
5,231
5,254
5,276
11,750
11,800
11,850
11,900
11,950
11,800
11,850
11,900
11,950
12,000
127
124
120
116
112
3,043
3,043
3,043
3,043
3,043
4,710
4,730
4,750
4,770
4,790
5,299
5,321
5,344
5,366
5,389
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
4,710
4,730
4,750
4,770
4,790
5,299
5,321
5,344
5,366
5,389
12,000
12,050
12,100
12,150
12,200
12,050
12,100
12,150
12,200
12,250
108
104
101
97
93
3,043
3,043
3,043
3,043
3,043
4,810
4,830
4,850
4,870
4,890
5,411
5,434
5,456
5,479
5,501
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
4,810
4,830
4,850
4,870
4,890
5,411
5,434
5,456
5,479
5,501
12,250
12,300
12,350
12,400
12,450
12,300
12,350
12,400
12,450
12,500
89
85
81
78
74
3,043
3,043
3,043
3,043
3,043
4,910
4,930
4,950
4,970
4,990
5,524
5,546
5,569
5,591
5,614
457
457
457
457
457
3,043
3,043
3,043
3,043
3,043
4,910
4,930
4,950
4,970
4,990
5,524
5,546
5,569
5,591
5,614
12,500
12,550
12,600
12,650
12,700
12,550
12,600
12,650
12,700
12,750
70
66
62
59
55
3,043
3,043
3,043
3,043
3,043
5,010
5,028
5,028
5,028
5,028
5,636
5,657
5,657
5,657
5,657
452
449
445
441
437
3,043
3,043
3,043
3,043
3,043
5,010
5,028
5,028
5,028
5,028
5,636
5,657
5,657
5,657
5,657
12,750
12,800
12,850
12,900
12,950
12,800
12,850
12,900
12,950
13,000
51
47
43
39
36
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
433
430
426
422
418
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
13,000
13,050
13,100
13,150
13,200
13,050
13,100
13,150
13,200
13,250
32
28
24
20
16
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
414
410
407
403
399
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
13,250
13,300
13,350
13,400
13,450
13,300
13,350
13,400
13,450
13,500
13
9
5
*
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
395
391
387
384
380
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
13,500
13,550
13,600
13,650
13,700
13,550
13,600
13,650
13,700
13,750
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
376
372
368
365
361
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
13,750
13,800
13,850
13,900
13,950
13,800
13,850
13,900
13,950
14,000
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
357
353
349
345
342
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
14,000
14,050
14,100
14,150
14,200
14,050
14,100
14,150
14,200
14,250
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
338
334
330
326
322
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
*If the amount you are looking up from the worksheet is at least $13,400 but less than $13,440, your credit is $2. Otherwise, you cannot take the
credit.
¶1113
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
2009 Earned Income Credit (EIC) Table – Continued
155
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
14,250
14,300
14,350
14,400
14,450
14,300
14,350
14,400
14,450
14,500
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
319
315
311
307
303
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
14,500
14,550
14,600
14,650
14,700
14,550
14,600
14,650
14,700
14,750
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
299
296
292
288
284
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
14,750
14,800
14,850
14,900
14,950
14,800
14,850
14,900
14,950
15,000
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
280
277
273
269
265
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
15,000
15,050
15,100
15,150
15,200
15,050
15,100
15,150
15,200
15,250
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
261
257
254
250
246
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
15,250
15,300
15,350
15,400
15,450
15,300
15,350
15,400
15,450
15,500
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
242
238
234
231
227
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
15,500
15,550
15,600
15,650
15,700
15,550
15,600
15,650
15,700
15,750
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
223
219
215
212
208
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
15,750
15,800
15,850
15,900
15,950
15,800
15,850
15,900
15,950
16,000
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
204
200
196
192
189
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
16,000
16,050
16,100
16,150
16,200
16,050
16,100
16,150
16,200
16,250
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
185
181
177
173
169
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
16,250
16,300
16,350
16,400
16,450
16,300
16,350
16,400
16,450
16,500
0
0
0
0
0
3,043
3,043
3,043
3,043
3,034
5,028
5,028
5,028
5,028
5,016
5,657
5,657
5,657
5,657
5,645
166
162
158
154
150
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
16,500
16,550
16,600
16,650
16,700
16,550
16,600
16,650
16,700
16,750
0
0
0
0
0
3,026
3,018
3,010
3,002
2,994
5,006
4,995
4,985
4,974
4,964
5,634
5,624
5,613
5,603
5,592
146
143
139
135
131
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
16,750
16,800
16,850
16,900
16,950
16,800
16,850
16,900
16,950
17,000
0
0
0
0
0
2,986
2,978
2,970
2,962
2,954
4,953
4,943
4,932
4,922
4,911
5,582
5,571
5,561
5,550
5,540
127
124
120
116
112
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
17,000
17,050
17,100
17,150
17,200
17,050
17,100
17,150
17,200
17,250
0
0
0
0
0
2,946
2,938
2,930
2,922
2,914
4,901
4,890
4,880
4,869
4,858
5,529
5,519
5,508
5,497
5,487
108
104
101
97
93
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
¶1113
156
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Earned Income Credit (EIC) Table – Continued
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
17,250
17,300
17,350
17,400
17,450
17,300
17,350
17,400
17,450
17,500
0
0
0
0
0
2,906
2,898
2,890
2,882
2,874
4,848
4,837
4,827
4,816
4,806
5,476
5,466
5,455
5,445
5,434
89
85
81
78
74
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
17,500
17,550
17,600
17,650
17,700
17,550
17,600
17,650
17,700
17,750
0
0
0
0
0
2,866
2,858
2,850
2,842
2,834
4,795
4,785
4,774
4,764
4,753
5,424
5,413
5,403
5,392
5,382
70
66
62
59
55
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
17,750
17,800
17,850
17,900
17,950
17,800
17,850
17,900
17,950
18,000
0
0
0
0
0
2,826
2,818
2,810
2,803
2,795
4,743
4,732
4,722
4,711
4,701
5,371
5,361
5,350
5,340
5,329
51
47
43
39
36
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
18,000
18,050
18,100
18,150
18,200
18,050
18,100
18,150
18,200
18,250
0
0
0
0
0
2,787
2,779
2,771
2,763
2,755
4,690
4,679
4,669
4,658
4,648
5,318
5,308
5,297
5,287
5,276
32
28
24
20
16
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
18,250
18,300
18,350
18,400
18,450
18,300
18,350
18,400
18,450
18,500
0
0
0
0
0
2,747
2,739
2,731
2,723
2,715
4,637
4,627
4,616
4,606
4,595
5,266
5,255
5,245
5,234
5,224
13
9
5
*
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
18,500
18,550
18,600
18,650
18,700
18,550
18,600
18,650
18,700
18,750
0
0
0
0
0
2,707
2,699
2,691
2,683
2,675
4,585
4,574
4,564
4,553
4,543
5,213
5,203
5,192
5,182
5,171
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
18,750
18,800
18,850
18,900
18,950
18,800
18,850
18,900
18,950
19,000
0
0
0
0
0
2,667
2,659
2,651
2,643
2,635
4,532
4,522
4,511
4,500
4,490
5,161
5,150
5,139
5,129
5,118
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
19,000
19,050
19,100
19,150
19,200
19,050
19,100
19,150
19,200
19,250
0
0
0
0
0
2,627
2,619
2,611
2,603
2,595
4,479
4,469
4,458
4,448
4,437
5,108
5,097
5,087
5,076
5,066
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
19,250
19,300
19,350
19,400
19,450
19,300
19,350
19,400
19,450
19,500
0
0
0
0
0
2,587
2,579
2,571
2,563
2,555
4,427
4,416
4,406
4,395
4,385
5,055
5,045
5,034
5,024
5,013
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
19,500
19,550
19,600
19,650
19,700
19,550
19,600
19,650
19,700
19,750
0
0
0
0
0
2,547
2,539
2,531
2,523
2,515
4,374
4,364
4,353
4,342
4,332
5,003
4,992
4,982
4,971
4,960
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
19,750
19,800
19,850
19,900
19,950
19,800
19,850
19,900
19,950
20,000
0
0
0
0
0
2,507
2,499
2,491
2,483
2,475
4,321
4,311
4,300
4,290
4,279
4,950
4,939
4,929
4,918
4,908
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
*If the amount you are looking up from the worksheet is at least $18,400 but less than $18,440, your credit is $2. Otherwise, you cannot take the
credit.
¶1113
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
2009 Earned Income Credit (EIC) Table – Continued
157
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
20,000
20,050
20,100
20,150
20,200
20,050
20,100
20,150
20,200
20,250
0
0
0
0
0
2,467
2,459
2,451
2,443
2,435
4,269
4,258
4,248
4,237
4,227
4,897
4,887
4,876
4,866
4,855
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
20,250
20,300
20,350
20,400
20,450
20,300
20,350
20,400
20,450
20,500
0
0
0
0
0
2,427
2,419
2,411
2,403
2,395
4,216
4,206
4,195
4,185
4,174
4,845
4,834
4,824
4,813
4,803
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
20,500
20,550
20,600
20,650
20,700
20,550
20,600
20,650
20,700
20,750
0
0
0
0
0
2,387
2,379
2,371
2,363
2,355
4,163
4,153
4,142
4,132
4,121
4,792
4,781
4,771
4,760
4,750
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
20,750
20,800
20,850
20,900
20,950
20,800
20,850
20,900
20,950
21,000
0
0
0
0
0
2,347
2,339
2,331
2,323
2,315
4,111
4,100
4,090
4,079
4,069
4,739
4,729
4,718
4,708
4,697
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
21,000
21,050
21,100
21,150
21,200
21,050
21,100
21,150
21,200
21,250
0
0
0
0
0
2,307
2,299
2,291
2,283
2,275
4,058
4,048
4,037
4,027
4,016
4,687
4,676
4,666
4,655
4,645
0
0
0
0
0
3,043
3,043
3,043
3,043
3,043
5,028
5,028
5,028
5,028
5,028
5,657
5,657
5,657
5,657
5,657
21,250
21,300
21,350
21,400
21,450
21,300
21,350
21,400
21,450
21,500
0
0
0
0
0
2,267
2,259
2,251
2,243
2,235
4,006
3,995
3,984
3,974
3,963
4,634
4,624
4,613
4,602
4,592
0
0
0
0
0
3,043
3,043
3,043
3,043
3,034
5,028
5,028
5,028
5,028
5,016
5,657
5,657
5,657
5,657
5,645
21,500
21,550
21,600
21,650
21,700
21,550
21,600
21,650
21,700
21,750
0
0
0
0
0
2,227
2,219
2,211
2,203
2,195
3,953
3,942
3,932
3,921
3,911
4,581
4,571
4,560
4,550
4,539
0
0
0
0
0
3,026
3,018
3,010
3,002
2,994
5,006
4,995
4,985
4,974
4,964
5,634
5,624
5,613
5,603
5,592
21,750
21,800
21,850
21,900
21,950
21,800
21,850
21,900
21,950
22,000
0
0
0
0
0
2,187
2,179
2,171
2,163
2,155
3,900
3,890
3,879
3,869
3,858
4,529
4,518
4,508
4,497
4,487
0
0
0
0
0
2,986
2,978
2,970
2,962
2,954
4,953
4,943
4,932
4,922
4,911
5,582
5,571
5,561
5,550
5,540
22,000
22,050
22,100
22,150
22,200
22,050
22,100
22,150
22,200
22,250
0
0
0
0
0
2,147
2,139
2,131
2,123
2,115
3,848
3,837
3,827
3,816
3,805
4,476
4,466
4,455
4,444
4,434
0
0
0
0
0
2,946
2,938
2,930
2,922
2,914
4,901
4,890
4,880
4,869
4,858
5,529
5,519
5,508
5,497
5,487
22,250
22,300
22,350
22,400
22,450
22,300
22,350
22,400
22,450
22,500
0
0
0
0
0
2,107
2,099
2,091
2,083
2,075
3,795
3,784
3,774
3,763
3,753
4,423
4,413
4,402
4,392
4,381
0
0
0
0
0
2,906
2,898
2,890
2,882
2,874
4,848
4,837
4,827
4,816
4,806
5,476
5,466
5,455
5,445
5,434
22,500
22,550
22,600
22,650
22,700
22,550
22,600
22,650
22,700
22,750
0
0
0
0
0
2,067
2,059
2,051
2,043
2,035
3,742
3,732
3,721
3,711
3,700
4,371
4,360
4,350
4,339
4,329
0
0
0
0
0
2,866
2,858
2,850
2,842
2,834
4,795
4,785
4,774
4,764
4,753
5,424
5,413
5,403
5,392
5,382
22,750
22,800
22,850
22,900
22,950
22,800
22,850
22,900
22,950
23,000
0
0
0
0
0
2,027
2,019
2,011
2,004
1,996
3,690
3,679
3,669
3,658
3,648
4,318
4,308
4,297
4,287
4,276
0
0
0
0
0
2,826
2,818
2,810
2,803
2,795
4,743
4,732
4,722
4,711
4,701
5,371
5,361
5,350
5,340
5,329
¶1113
158
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Earned Income Credit (EIC) Table – Continued
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
¶1113
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
23,000
23,050
23,100
23,150
23,200
23,050
23,100
23,150
23,200
23,250
0
0
0
0
0
1,988
1,980
1,972
1,964
1,956
3,637
3,626
3,616
3,605
3,595
4,265
4,255
4,244
4,234
4,223
0
0
0
0
0
2,787
2,779
2,771
2,763
2,755
4,690
4,679
4,669
4,658
4,648
5,318
5,308
5,297
5,287
5,276
23,250
23,300
23,350
23,400
23,450
23,300
23,350
23,400
23,450
23,500
0
0
0
0
0
1,948
1,940
1,932
1,924
1,916
3,584
3,574
3,563
3,553
3,542
4,213
4,202
4,192
4,181
4,171
0
0
0
0
0
2,747
2,739
2,731
2,723
2,715
4,637
4,627
4,616
4,606
4,595
5,266
5,255
5,245
5,234
5,224
23,500
23,550
23,600
23,650
23,700
23,550
23,600
23,650
23,700
23,750
0
0
0
0
0
1,908
1,900
1,892
1,884
1,876
3,532
3,521
3,511
3,500
3,490
4,160
4,150
4,139
4,129
4,118
0
0
0
0
0
2,707
2,699
2,691
2,683
2,675
4,585
4,574
4,564
4,553
4,543
5,213
5,203
5,192
5,182
5,171
23,750
23,800
23,850
23,900
23,950
23,800
23,850
23,900
23,950
24,000
0
0
0
0
0
1,868
1,860
1,852
1,844
1,836
3,479
3,469
3,458
3,447
3,437
4,108
4,097
4,086
4,076
4,065
0
0
0
0
0
2,667
2,659
2,651
2,643
2,635
4,532
4,522
4,511
4,500
4,490
5,161
5,150
5,139
5,129
5,118
24,000
24,050
24,100
24,150
24,200
24,050
24,100
24,150
24,200
24,250
0
0
0
0
0
1,828
1,820
1,812
1,804
1,796
3,426
3,416
3,405
3,395
3,384
4,055
4,044
4,034
4,023
4,013
0
0
0
0
0
2,627
2,619
2,611
2,603
2,595
4,479
4,469
4,458
4,448
4,437
5,108
5,097
5,087
5,076
5,066
24,250
24,300
24,350
24,400
24,450
24,300
24,350
24,400
24,450
24,500
0
0
0
0
0
1,788
1,780
1,772
1,764
1,756
3,374
3,363
3,353
3,342
3,332
4,002
3,992
3,981
3,971
3,960
0
0
0
0
0
2,587
2,579
2,571
2,563
2,555
4,427
4,416
4,406
4,395
4,385
5,055
5,045
5,034
5,024
5,013
24,500
24,550
24,600
24,650
24,700
24,550
24,600
24,650
24,700
24,750
0
0
0
0
0
1,748
1,740
1,732
1,724
1,716
3,321
3,311
3,300
3,289
3,279
3,950
3,939
3,929
3,918
3,907
0
0
0
0
0
2,547
2,539
2,531
2,523
2,515
4,374
4,364
4,353
4,342
4,332
5,003
4,992
4,982
4,971
4,960
24,750
24,800
24,850
24,900
24,950
24,800
24,850
24,900
24,950
25,000
0
0
0
0
0
1,708
1,700
1,692
1,684
1,676
3,268
3,258
3,247
3,237
3,226
3,897
3,886
3,876
3,865
3,855
0
0
0
0
0
2,507
2,499
2,491
2,483
2,475
4,321
4,311
4,300
4,290
4,279
4,950
4,939
4,929
4,918
4,908
25,000
25,050
25,100
25,150
25,200
25,050
25,100
25,150
25,200
25,250
0
0
0
0
0
1,668
1,660
1,652
1,644
1,636
3,216
3,205
3,195
3,184
3,174
3,844
3,834
3,823
3,813
3,802
0
0
0
0
0
2,467
2,459
2,451
2,443
2,435
4,269
4,258
4,248
4,237
4,227
4,897
4,887
4,876
4,866
4,855
25,250
25,300
25,350
25,400
25,450
25,300
25,350
25,400
25,450
25,500
0
0
0
0
0
1,628
1,620
1,612
1,604
1,596
3,163
3,153
3,142
3,132
3,121
3,792
3,781
3,771
3,760
3,750
0
0
0
0
0
2,427
2,419
2,411
2,403
2,395
4,216
4,206
4,195
4,185
4,174
4,845
4,834
4,824
4,813
4,803
25,500
25,550
25,600
25,650
25,700
25,550
25,600
25,650
25,700
25,750
0
0
0
0
0
1,588
1,580
1,572
1,564
1,556
3,110
3,100
3,089
3,079
3,068
3,739
3,728
3,718
3,707
3,697
0
0
0
0
0
2,387
2,379
2,371
2,363
2,355
4,163
4,153
4,142
4,132
4,121
4,792
4,781
4,771
4,760
4,750
25,750
25,800
25,850
25,900
25,950
25,800
25,850
25,900
25,950
26,000
0
0
0
0
0
1,548
1,540
1,532
1,524
1,516
3,058
3,047
3,037
3,026
3,016
3,686
3,676
3,665
3,655
3,644
0
0
0
0
0
2,347
2,339
2,331
2,323
2,315
4,111
4,100
4,090
4,079
4,069
4,739
4,729
4,718
4,708
4,697
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
2009 Earned Income Credit (EIC) Table – Continued
159
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
26,000
26,050
26,100
26,150
26,200
26,050
26,100
26,150
26,200
26,250
0
0
0
0
0
1,508
1,500
1,492
1,484
1,476
3,005
2,995
2,984
2,974
2,963
3,634
3,623
3,613
3,602
3,592
0
0
0
0
0
2,307
2,299
2,291
2,283
2,275
4,058
4,048
4,037
4,027
4,016
4,687
4,676
4,666
4,655
4,645
26,250
26,300
26,350
26,400
26,450
26,300
26,350
26,400
26,450
26,500
0
0
0
0
0
1,468
1,460
1,452
1,444
1,436
2,953
2,942
2,931
2,921
2,910
3,581
3,571
3,560
3,549
3,539
0
0
0
0
0
2,267
2,259
2,251
2,243
2,235
4,006
3,995
3,984
3,974
3,963
4,634
4,624
4,613
4,602
4,592
26,500
26,550
26,600
26,650
26,700
26,550
26,600
26,650
26,700
26,750
0
0
0
0
0
1,428
1,420
1,412
1,404
1,396
2,900
2,889
2,879
2,868
2,858
3,528
3,518
3,507
3,497
3,486
0
0
0
0
0
2,227
2,219
2,211
2,203
2,195
3,953
3,942
3,932
3,921
3,911
4,581
4,571
4,560
4,550
4,539
26,750
26,800
26,850
26,900
26,950
26,800
26,850
26,900
26,950
27,000
0
0
0
0
0
1,388
1,380
1,372
1,364
1,356
2,847
2,837
2,826
2,816
2,805
3,476
3,465
3,455
3,444
3,434
0
0
0
0
0
2,187
2,179
2,171
2,163
2,155
3,900
3,890
3,879
3,869
3,858
4,529
4,518
4,508
4,497
4,487
27,000
27,050
27,100
27,150
27,200
27,050
27,100
27,150
27,200
27,250
0
0
0
0
0
1,348
1,340
1,332
1,324
1,316
2,795
2,784
2,774
2,763
2,752
3,423
3,413
3,402
3,391
3,381
0
0
0
0
0
2,147
2,139
2,131
2,123
2,115
3,848
3,837
3,827
3,816
3,805
4,476
4,466
4,455
4,444
4,434
27,250
27,300
27,350
27,400
27,450
27,300
27,350
27,400
27,450
27,500
0
0
0
0
0
1,308
1,300
1,292
1,284
1,276
2,742
2,731
2,721
2,710
2,700
3,370
3,360
3,349
3,339
3,328
0
0
0
0
0
2,107
2,099
2,091
2,083
2,075
3,795
3,784
3,774
3,763
3,753
4,423
4,413
4,402
4,392
4,381
27,500
27,550
27,600
27,650
27,700
27,550
27,600
27,650
27,700
27,750
0
0
0
0
0
1,268
1,260
1,252
1,244
1,236
2,689
2,679
2,668
2,658
2,647
3,318
3,307
3,297
3,286
3,276
0
0
0
0
0
2,067
2,059
2,051
2,043
2,035
3,742
3,732
3,721
3,711
3,700
4,371
4,360
4,350
4,339
4,329
27,750
27,800
27,850
27,900
27,950
27,800
27,850
27,900
27,950
28,000
0
0
0
0
0
1,228
1,220
1,212
1,205
1,197
2,637
2,626
2,616
2,605
2,595
3,265
3,255
3,244
3,234
3,223
0
0
0
0
0
2,027
2,019
2,011
2,004
1,996
3,690
3,679
3,669
3,658
3,648
4,318
4,308
4,297
4,287
4,276
28,000
28,050
28,100
28,150
28,200
28,050
28,100
28,150
28,200
28,250
0
0
0
0
0
1,189
1,181
1,173
1,165
1,157
2,584
2,573
2,563
2,552
2,542
3,212
3,202
3,191
3,181
3,170
0
0
0
0
0
1,988
1,980
1,972
1,964
1,956
3,637
3,626
3,616
3,605
3,595
4,265
4,255
4,244
4,234
4,223
28,250
28,300
28,350
28,400
28,450
28,300
28,350
28,400
28,450
28,500
0
0
0
0
0
1,149
1,141
1,133
1,125
1,117
2,531
2,521
2,510
2,500
2,489
3,160
3,149
3,139
3,128
3,118
0
0
0
0
0
1,948
1,940
1,932
1,924
1,916
3,584
3,574
3,563
3,553
3,542
4,213
4,202
4,192
4,181
4,171
28,500
28,550
28,600
28,650
28,700
28,550
28,600
28,650
28,700
28,750
0
0
0
0
0
1,109
1,101
1,093
1,085
1,077
2,479
2,468
2,458
2,447
2,437
3,107
3,097
3,086
3,076
3,065
0
0
0
0
0
1,908
1,900
1,892
1,884
1,876
3,532
3,521
3,511
3,500
3,490
4,160
4,150
4,139
4,129
4,118
28,750
28,800
28,850
28,900
28,950
28,800
28,850
28,900
28,950
29,000
0
0
0
0
0
1,069
1,061
1,053
1,045
1,037
2,426
2,416
2,405
2,394
2,384
3,055
3,044
3,033
3,023
3,012
0
0
0
0
0
1,868
1,860
1,852
1,844
1,836
3,479
3,469
3,458
3,447
3,437
4,108
4,097
4,086
4,076
4,065
¶1113
160
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Earned Income Credit (EIC) Table – Continued
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
¶1113
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
29,000
29,050
29,100
29,150
29,200
29,050
29,100
29,150
29,200
29,250
0
0
0
0
0
1,029
1,021
1,013
1,005
997
2,373
2,363
2,352
2,342
2,331
3,002
2,991
2,981
2,970
2,960
0
0
0
0
0
1,828
1,820
1,812
1,804
1,796
3,426
3,416
3,405
3,395
3,384
4,055
4,044
4,034
4,023
4,013
29,250
29,300
29,350
29,400
29,450
29,300
29,350
29,400
29,450
29,500
0
0
0
0
0
989
981
973
965
957
2,321
2,310
2,300
2,289
2,279
2,949
2,939
2,928
2,918
2,907
0
0
0
0
0
1,788
1,780
1,772
1,764
1,756
3,374
3,363
3,353
3,342
3,332
4,002
3,992
3,981
3,971
3,960
29,500
29,550
29,600
29,650
29,700
29,550
29,600
29,650
29,700
29,750
0
0
0
0
0
949
941
933
925
917
2,268
2,258
2,247
2,236
2,226
2,897
2,886
2,876
2,865
2,854
0
0
0
0
0
1,748
1,740
1,732
1,724
1,716
3,321
3,311
3,300
3,289
3,279
3,950
3,939
3,929
3,918
3,907
29,750
29,800
29,850
29,900
29,950
29,800
29,850
29,900
29,950
30,000
0
0
0
0
0
909
901
893
885
877
2,215
2,205
2,194
2,184
2,173
2,844
2,833
2,823
2,812
2,802
0
0
0
0
0
1,708
1,700
1,692
1,684
1,676
3,268
3,258
3,247
3,237
3,226
3,897
3,886
3,876
3,865
3,855
30,000
30,050
30,100
30,150
30,200
30,050
30,100
30,150
30,200
30,250
0
0
0
0
0
869
861
853
845
837
2,163
2,152
2,142
2,131
2,121
2,791
2,781
2,770
2,760
2,749
0
0
0
0
0
1,668
1,660
1,652
1,644
1,636
3,216
3,205
3,195
3,184
3,174
3,844
3,834
3,823
3,813
3,802
30,250
30,300
30,350
30,400
30,450
30,300
30,350
30,400
30,450
30,500
0
0
0
0
0
829
821
813
805
797
2,110
2,100
2,089
2,079
2,068
2,739
2,728
2,718
2,707
2,697
0
0
0
0
0
1,628
1,620
1,612
1,604
1,596
3,163
3,153
3,142
3,132
3,121
3,792
3,781
3,771
3,760
3,750
30,500
30,550
30,600
30,650
30,700
30,550
30,600
30,650
30,700
30,750
0
0
0
0
0
789
781
773
765
757
2,057
2,047
2,036
2,026
2,015
2,686
2,675
2,665
2,654
2,644
0
0
0
0
0
1,588
1,580
1,572
1,564
1,556
3,110
3,100
3,089
3,079
3,068
3,739
3,728
3,718
3,707
3,697
30,750
30,800
30,850
30,900
30,950
30,800
30,850
30,900
30,950
31,000
0
0
0
0
0
749
741
733
725
717
2,005
1,994
1,984
1,973
1,963
2,633
2,623
2,612
2,602
2,591
0
0
0
0
0
1,548
1,540
1,532
1,524
1,516
3,058
3,047
3,037
3,026
3,016
3,686
3,676
3,665
3,655
3,644
31,000
31,050
31,100
31,150
31,200
31,050
31,100
31,150
31,200
31,250
0
0
0
0
0
709
701
693
685
677
1,952
1,942
1,931
1,921
1,910
2,581
2,570
2,560
2,549
2,539
0
0
0
0
0
1,508
1,500
1,492
1,484
1,476
3,005
2,995
2,984
2,974
2,963
3,634
3,623
3,613
3,602
3,592
31,250
31,300
31,350
31,400
31,450
31,300
31,350
31,400
31,450
31,500
0
0
0
0
0
669
661
653
645
637
1,900
1,889
1,878
1,868
1,857
2,528
2,518
2,507
2,496
2,486
0
0
0
0
0
1,468
1,460
1,452
1,444
1,436
2,953
2,942
2,931
2,921
2,910
3,581
3,571
3,560
3,549
3,539
31,500
31,550
31,600
31,650
31,700
31,550
31,600
31,650
31,700
31,750
0
0
0
0
0
629
621
613
605
597
1,847
1,836
1,826
1,815
1,805
2,475
2,465
2,454
2,444
2,433
0
0
0
0
0
1,428
1,420
1,412
1,404
1,396
2,900
2,889
2,879
2,868
2,858
3,528
3,518
3,507
3,497
3,486
31,750
31,800
31,850
31,900
31,950
31,800
31,850
31,900
31,950
32,000
0
0
0
0
0
589
581
573
565
557
1,794
1,784
1,773
1,763
1,752
2,423
2,412
2,402
2,391
2,381
0
0
0
0
0
1,388
1,380
1,372
1,364
1,356
2,847
2,837
2,826
2,816
2,805
3,476
3,465
3,455
3,444
3,434
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
2009 Earned Income Credit (EIC) Table – Continued
161
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
32,000
32,050
32,100
32,150
32,200
32,050
32,100
32,150
32,200
32,250
0
0
0
0
0
549
541
533
525
517
1,742
1,731
1,721
1,710
1,699
2,370
2,360
2,349
2,338
2,328
0
0
0
0
0
1,348
1,340
1,332
1,324
1,316
2,795
2,784
2,774
2,763
2,752
3,423
3,413
3,402
3,391
3,381
32,250
32,300
32,350
32,400
32,450
32,300
32,350
32,400
32,450
32,500
0
0
0
0
0
509
501
493
485
477
1,689
1,678
1,668
1,657
1,647
2,317
2,307
2,296
2,286
2,275
0
0
0
0
0
1,308
1,300
1,292
1,284
1,276
2,742
2,731
2,721
2,710
2,700
3,370
3,360
3,349
3,339
3,328
32,500
32,550
32,600
32,650
32,700
32,550
32,600
32,650
32,700
32,750
0
0
0
0
0
469
461
453
445
437
1,636
1,626
1,615
1,605
1,594
2,265
2,254
2,244
2,233
2,223
0
0
0
0
0
1,268
1,260
1,252
1,244
1,236
2,689
2,679
2,668
2,658
2,647
3,318
3,307
3,297
3,286
3,276
32,750
32,800
32,850
32,900
32,950
32,800
32,850
32,900
32,950
33,000
0
0
0
0
0
429
421
413
406
398
1,584
1,573
1,563
1,552
1,542
2,212
2,202
2,191
2,181
2,170
0
0
0
0
0
1,228
1,220
1,212
1,205
1,197
2,637
2,626
2,616
2,605
2,595
3,265
3,255
3,244
3,234
3,223
33,000
33,050
33,100
33,150
33,200
33,050
33,100
33,150
33,200
33,250
0
0
0
0
0
390
382
374
366
358
1,531
1,520
1,510
1,499
1,489
2,159
2,149
2,138
2,128
2,117
0
0
0
0
0
1,189
1,181
1,173
1,165
1,157
2,584
2,573
2,563
2,552
2,542
3,212
3,202
3,191
3,181
3,170
33,250
33,300
33,350
33,400
33,450
33,300
33,350
33,400
33,450
33,500
0
0
0
0
0
350
342
334
326
318
1,478
1,468
1,457
1,447
1,436
2,107
2,096
2,086
2,075
2,065
0
0
0
0
0
1,149
1,141
1,133
1,125
1,117
2,531
2,521
2,510
2,500
2,489
3,160
3,149
3,139
3,128
3,118
33,500
33,550
33,600
33,650
33,700
33,550
33,600
33,650
33,700
33,750
0
0
0
0
0
310
302
294
286
278
1,426
1,415
1,405
1,394
1,384
2,054
2,044
2,033
2,023
2,012
0
0
0
0
0
1,109
1,101
1,093
1,085
1,077
2,479
2,468
2,458
2,447
2,437
3,107
3,097
3,086
3,076
3,065
33,750
33,800
33,850
33,900
33,950
33,800
33,850
33,900
33,950
34,000
0
0
0
0
0
270
262
254
246
238
1,373
1,363
1,352
1,341
1,331
2,002
1,991
1,980
1,970
1,959
0
0
0
0
0
1,069
1,061
1,053
1,045
1,037
2,426
2,416
2,405
2,394
2,384
3,055
3,044
3,033
3,023
3,012
34,000
34,050
34,100
34,150
34,200
34,050
34,100
34,150
34,200
34,250
0
0
0
0
0
230
222
214
206
198
1,320
1,310
1,299
1,289
1,278
1,949
1,938
1,928
1,917
1,907
0
0
0
0
0
1,029
1,021
1,013
1,005
997
2,373
2,363
2,352
2,342
2,331
3,002
2,991
2,981
2,970
2,960
34,250
34,300
34,350
34,400
34,450
34,300
34,350
34,400
34,450
34,500
0
0
0
0
0
190
182
174
166
158
1,268
1,257
1,247
1,236
1,226
1,896
1,886
1,875
1,865
1,854
0
0
0
0
0
989
981
973
965
957
2,321
2,310
2,300
2,289
2,279
2,949
2,939
2,928
2,918
2,907
34,500
34,550
34,600
34,650
34,700
34,550
34,600
34,650
34,700
34,750
0
0
0
0
0
150
142
134
126
118
1,215
1,205
1,194
1,183
1,173
1,844
1,833
1,823
1,812
1,801
0
0
0
0
0
949
941
933
925
917
2,268
2,258
2,247
2,236
2,226
2,897
2,886
2,876
2,865
2,854
34,750
34,800
34,850
34,900
34,950
34,800
34,850
34,900
34,950
35,000
0
0
0
0
0
110
102
94
86
78
1,162
1,152
1,141
1,131
1,120
1,791
1,780
1,770
1,759
1,749
0
0
0
0
0
909
901
893
885
877
2,215
2,205
2,194
2,184
2,173
2,844
2,833
2,823
2,812
2,802
¶1113
162
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Earned Income Credit (EIC) Table – Continued
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
35,000
35,050
35,100
35,150
35,200
35,050
35,100
35,150
35,200
35,250
0
0
0
0
0
70
62
54
46
38
1,110
1,099
1,089
1,078
1,068
1,738
1,728
1,717
1,707
1,696
0
0
0
0
0
869
861
853
845
837
2,163
2,152
2,142
2,131
2,121
2,791
2,781
2,770
2,760
2,749
35,250
35,300
35,350
35,400
35,450
35,300
35,350
35,400
35,450
35,500
0
0
0
0
0
30
22
14
6
*
1,057
1,047
1,036
1,026
1,015
1,686
1,675
1,665
1,654
1,644
0
0
0
0
0
829
821
813
805
797
2,110
2,100
2,089
2,079
2,068
2,739
2,728
2,718
2,707
2,697
35,500
35,550
35,600
35,650
35,700
35,550
35,600
35,650
35,700
35,750
0
0
0
0
0
0
0
0
0
0
1,004
994
983
973
962
1,633
1,622
1,612
1,601
1,591
0
0
0
0
0
789
781
773
765
757
2,057
2,047
2,036
2,026
2,015
2,686
2,675
2,665
2,654
2,644
35,750
35,800
35,850
35,900
35,950
35,800
35,850
35,900
35,950
36,000
0
0
0
0
0
0
0
0
0
0
952
941
931
920
910
1,580
1,570
1,559
1,549
1,538
0
0
0
0
0
749
741
733
725
717
2,005
1,994
1,984
1,973
1,963
2,633
2,623
2,612
2,602
2,591
36,000
36,050
36,100
36,150
36,200
36,050
36,100
36,150
36,200
36,250
0
0
0
0
0
0
0
0
0
0
899
889
878
868
857
1,528
1,517
1,507
1,496
1,486
0
0
0
0
0
709
701
693
685
677
1,952
1,942
1,931
1,921
1,910
2,581
2,570
2,560
2,549
2,539
36,250
36,300
36,350
36,400
36,450
36,300
36,350
36,400
36,450
36,500
0
0
0
0
0
0
0
0
0
0
847
836
825
815
804
1,475
1,465
1,454
1,443
1,433
0
0
0
0
0
669
661
653
645
637
1,900
1,889
1,878
1,868
1,857
2,528
2,518
2,507
2,496
2,486
36,500
36,550
36,600
36,650
36,700
36,550
36,600
36,650
36,700
36,750
0
0
0
0
0
0
0
0
0
0
794
783
773
762
752
1,422
1,412
1,401
1,391
1,380
0
0
0
0
0
629
621
613
605
597
1,847
1,836
1,826
1,815
1,805
2,475
2,465
2,454
2,444
2,433
36,750
36,800
36,850
36,900
36,950
36,800
36,850
36,900
36,950
37,000
0
0
0
0
0
0
0
0
0
0
741
731
720
710
699
1,370
1,359
1,349
1,338
1,328
0
0
0
0
0
589
581
573
565
557
1,794
1,784
1,773
1,763
1,752
2,423
2,412
2,402
2,391
2,381
37,000
37,050
37,100
37,150
37,200
37,050
37,100
37,150
37,200
37,250
0
0
0
0
0
0
0
0
0
0
689
678
668
657
646
1,317
1,307
1,296
1,285
1,275
0
0
0
0
0
549
541
533
525
517
1,742
1,731
1,721
1,710
1,699
2,370
2,360
2,349
2,338
2,328
37,250
37,300
37,350
37,400
37,450
37,300
37,350
37,400
37,450
37,500
0
0
0
0
0
0
0
0
0
0
636
625
615
604
594
1,264
1,254
1,243
1,233
1,222
0
0
0
0
0
509
501
493
485
477
1,689
1,678
1,668
1,657
1,647
2,317
2,307
2,296
2,286
2,275
37,500
37,550
37,600
37,650
37,700
37,550
37,600
37,650
37,700
37,750
0
0
0
0
0
0
0
0
0
0
583
573
562
552
541
1,212
1,201
1,191
1,180
1,170
0
0
0
0
0
469
461
453
445
437
1,636
1,626
1,615
1,605
1,594
2,265
2,254
2,244
2,233
2,223
*If the amount you are looking up from the worksheet is at least $35,450 but less than $35,463, your credit is $1. Otherwise, you cannot take the
credit.
¶1113
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
2009 Earned Income Credit (EIC) Table – Continued
163
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
37,750
37,800
37,850
37,900
37,950
37,800
37,850
37,900
37,950
38,000
0
0
0
0
0
0
0
0
0
0
531
520
510
499
489
1,159
1,149
1,138
1,128
1,117
0
0
0
0
0
429
421
413
406
398
1,584
1,573
1,563
1,552
1,542
2,212
2,202
2,191
2,181
2,170
38,000
38,050
38,100
38,150
38,200
38,050
38,100
38,150
38,200
38,250
0
0
0
0
0
0
0
0
0
0
478
467
457
446
436
1,106
1,096
1,085
1,075
1,064
0
0
0
0
0
390
382
374
366
358
1,531
1,520
1,510
1,499
1,489
2,159
2,149
2,138
2,128
2,117
38,250
38,300
38,350
38,400
38,450
38,300
38,350
38,400
38,450
38,500
0
0
0
0
0
0
0
0
0
0
425
415
404
394
383
1,054
1,043
1,033
1,022
1,012
0
0
0
0
0
350
342
334
326
318
1,478
1,468
1,457
1,447
1,436
2,107
2,096
2,086
2,075
2,065
38,500
38,550
38,600
38,650
38,700
38,550
38,600
38,650
38,700
38,750
0
0
0
0
0
0
0
0
0
0
373
362
352
341
331
1,001
991
980
970
959
0
0
0
0
0
310
302
294
286
278
1,426
1,415
1,405
1,394
1,384
2,054
2,044
2,033
2,023
2,012
38,750
38,800
38,850
38,900
38,950
38,800
38,850
38,900
38,950
39,000
0
0
0
0
0
0
0
0
0
0
320
310
299
288
278
949
938
927
917
906
0
0
0
0
0
270
262
254
246
238
1,373
1,363
1,352
1,341
1,331
2,002
1,991
1,980
1,970
1,959
39,000
39,050
39,100
39,150
39,200
39,050
39,100
39,150
39,200
39,250
0
0
0
0
0
0
0
0
0
0
267
257
246
236
225
896
885
875
864
854
0
0
0
0
0
230
222
214
206
198
1,320
1,310
1,299
1,289
1,278
1,949
1,938
1,928
1,917
1,907
39,250
39,300
39,350
39,400
39,450
39,300
39,350
39,400
39,450
39,500
0
0
0
0
0
0
0
0
0
0
215
204
194
183
173
843
833
822
812
801
0
0
0
0
0
190
182
174
166
158
1,268
1,257
1,247
1,236
1,226
1,896
1,886
1,875
1,865
1,854
39,500
39,550
39,600
39,650
39,700
39,550
39,600
39,650
39,700
39,750
0
0
0
0
0
0
0
0
0
0
162
152
141
130
120
791
780
770
759
748
0
0
0
0
0
150
142
134
126
118
1,215
1,205
1,194
1,183
1,173
1,844
1,833
1,823
1,812
1,801
39,750
39,800
39,850
39,900
39,950
39,800
39,850
39,900
39,950
40,000
0
0
0
0
0
0
0
0
0
0
109
99
88
78
67
738
727
717
706
696
0
0
0
0
0
110
102
94
86
78
1,162
1,152
1,141
1,131
1,120
1,791
1,780
1,770
1,759
1,749
40,000
40,050
40,100
40,150
40,200
40,050
40,100
40,150
40,200
40,250
0
0
0
0
0
0
0
0
0
0
57
46
36
25
15
685
675
664
654
643
0
0
0
0
0
70
62
54
46
38
1,110
1,099
1,089
1,078
1,068
1,738
1,728
1,717
1,707
1,696
40,250
40,300
40,350
40,400
40,450
40,300
40,350
40,400
40,450
40,500
0
0
0
0
0
0
0
0
0
0
*
0
0
0
0
633
622
612
601
591
0
0
0
0
0
30
22
14
6
**
1,057
1,047
1,036
1,026
1,015
1,686
1,675
1,665
1,654
1,644
*If the amount you are looking up from the worksheet is at least $40,250 but less than $40,295, your credit is $5. Otherwise, you cannot take the
credit.
**If the amount you are looking up from the worksheet is at least $40,450 but less than $40,463, your credit is $1. Otherwise, you cannot take the
credit.
¶1113
164
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Earned Income Credit (EIC) Table – Continued
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
¶1113
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
40,500
40,550
40,600
40,650
40,700
40,550
40,600
40,650
40,700
40,750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
580
569
559
548
538
0
0
0
0
0
0
0
0
0
0
1,004
994
983
973
962
1,633
1,622
1,612
1,601
1,591
40,750
40,800
40,850
40,900
40,950
40,800
40,850
40,900
40,950
41,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
527
517
506
496
485
0
0
0
0
0
0
0
0
0
0
952
941
931
920
910
1,580
1,570
1,559
1,549
1,538
41,000
41,050
41,100
41,150
41,200
41,050
41,100
41,150
41,200
41,250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
475
464
454
443
433
0
0
0
0
0
0
0
0
0
0
899
889
878
868
857
1,528
1,517
1,507
1,496
1,486
41,250
41,300
41,350
41,400
41,450
41,300
41,350
41,400
41,450
41,500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
422
412
401
390
380
0
0
0
0
0
0
0
0
0
0
847
836
825
815
804
1,475
1,465
1,454
1,443
1,433
41,500
41,550
41,600
41,650
41,700
41,550
41,600
41,650
41,700
41,750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
369
359
348
338
327
0
0
0
0
0
0
0
0
0
0
794
783
773
762
752
1,422
1,412
1,401
1,391
1,380
41,750
41,800
41,850
41,900
41,950
41,800
41,850
41,900
41,950
42,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
317
306
296
285
275
0
0
0
0
0
0
0
0
0
0
741
731
720
710
699
1,370
1,359
1,349
1,338
1,328
42,000
42,050
42,100
42,150
42,200
42,050
42,100
42,150
42,200
42,250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
264
254
243
232
222
0
0
0
0
0
0
0
0
0
0
689
678
668
657
646
1,317
1,307
1,296
1,285
1,275
42,250
42,300
42,350
42,400
42,450
42,300
42,350
42,400
42,450
42,500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
211
201
190
180
169
0
0
0
0
0
0
0
0
0
0
636
625
615
604
594
1,264
1,254
1,243
1,233
1,222
42,500
42,550
42,600
42,650
42,700
42,550
42,600
42,650
42,700
42,750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
159
148
138
127
117
0
0
0
0
0
0
0
0
0
0
583
573
562
552
541
1,212
1,201
1,191
1,180
1,170
42,750
42,800
42,850
42,900
42,950
42,800
42,850
42,900
42,950
43,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
106
96
85
75
64
0
0
0
0
0
0
0
0
0
0
531
520
510
499
489
1,159
1,149
1,138
1,128
1,117
43,000
43,050
43,100
43,150
43,200
43,050
43,100
43,150
43,200
43,250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
53
43
32
22
11
0
0
0
0
0
0
0
0
0
0
478
467
457
446
436
1,106
1,096
1,085
1,075
1,064
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
2009 Earned Income Credit (EIC) Table – Continued
165
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
43,250
43,300
43,350
43,400
43,450
43,300
43,350
43,400
43,450
43,500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
*
0
0
0
0
0
0
0
0
0
0
0
0
0
0
425
415
404
394
383
1,054
1,043
1,033
1,022
1,012
43,500
43,550
43,600
43,650
43,700
43,550
43,600
43,650
43,700
43,750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
373
362
352
341
331
1,001
991
980
970
959
43,750
43,800
43,850
43,900
43,950
43,800
43,850
43,900
43,950
44,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
320
310
299
288
278
949
938
927
917
906
44,000
44,050
44,100
44,150
44,200
44,050
44,100
44,150
44,200
44,250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
267
257
246
236
225
896
885
875
864
854
44,250
44,300
44,350
44,400
44,450
44,300
44,350
44,400
44,450
44,500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
215
204
194
183
173
843
833
822
812
801
44,500
44,550
44,600
44,650
44,700
44,550
44,600
44,650
44,700
44,750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
162
152
141
130
120
791
780
770
759
748
44,750
44,800
44,850
44,900
44,950
44,800
44,850
44,900
44,950
45,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
109
99
88
78
67
738
727
717
706
696
45,000
45,050
45,100
45,150
45,200
45,050
45,100
45,150
45,200
45,250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
57
46
36
25
15
685
675
664
654
643
45,250
45,300
45,350
45,400
45,450
45,300
45,350
45,400
45,450
45,500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
**
0
0
0
0
633
622
612
601
591
45,500
45,550
45,600
45,650
45,700
45,550
45,600
45,650
45,700
45,750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
580
569
559
548
538
45,750
45,800
45,850
45,900
45,950
45,800
45,850
45,900
45,950
46,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
527
517
506
496
485
*If the amount you are looking up from the worksheet is at least $43,250 but less than $43,279, your credit is $3. Otherwise, you cannot take the
credit.
**If the amount you are looking up from the worksheet is at least $45,250 but less than $45,295, your credit is $5. Otherwise, you cannot take the
credit.
¶1113
166
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Earned Income Credit (EIC) Table – Continued
(Caution. This is not a tax table.)
And your filing status is –
If the amount you are looking up
from the worksheet is –
Single, head of household, or qualifying widow(er)
and you have –
No Children
At least
¶1113
But less than
One Child
Two Children
Married filing jointly and you have –
Three Children
No Children
Your credit is –
One Child
Two Children
Three Children
Your credit is –
46,000
46,050
46,100
46,150
46,200
46,050
46,100
46,150
46,200
46,250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
475
464
454
443
433
46,250
46,300
46,350
46,400
46,450
46,300
46,350
46,400
46,450
46,500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
422
412
401
390
380
46,500
46,550
46,600
46,650
46,700
46,550
46,600
46,650
46,700
46,750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
369
359
348
338
327
46,750
46,800
46,850
46,900
46,950
46,800
46,850
46,900
46,950
47,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
317
306
296
285
275
47,000
47,050
47,100
47,150
47,200
47,050
47,100
47,150
47,200
47,250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
264
254
243
232
222
47,250
47,300
47,350
47,400
47,450
47,300
47,350
47,400
47,450
47,500
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
211
201
190
180
169
47,500
47,550
47,600
47,650
47,700
47,550
47,600
47,650
47,700
47,750
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
159
148
138
127
117
47,750
47,800
47,850
47,900
47,950
47,800
47,850
47,900
47,950
48,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
106
96
85
75
64
48,000
48,050
48,100
48,150
48,200
48,050
48,100
48,150
48,200
48,250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
53
43
32
22
11
48,250
48,279
0
0
0
0
0
0
0
3
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
Advance payment of earned income credit. Individu-
als with one or more qualifying children can receive an
advance payment of the earned income credit. The
advance is paid by their employer. The advance is limited
to 60% of the maximum credit that would be paid to an
individual with one qualifying child. Thus, an individual
with two or more qualifying children will still receive an
advance of only 60% of the credit allowed for one qualifying child. An individual who has no qualifying children
cannot receive an advance payment of the credit.
The individual who wants to receive an advance payment
of the credit must file a statement with his employer
certifying eligibility (Form W-5, Earned Income Credit
Advance Payment Certificate). If a married couple claims
the credit and each spouse files for an advance payment,
the maximum payment to each spouse is one-half of the
amount otherwise allowable.
The IRS will notify those individuals who receive a tax
refund based on the earned income credit that they are
entitled to receive an advance payment.
STUDY QUESTIONS
8.
In 2009, a home owner installs solar panels costing
$20,000. The maximum credit he can claim is:
a. $2,000
b. $6,000
c. $20,000
167
¶1114 Credits for Overpayment of FICA
(Sec. 31) and the Federal Gasoline Tax
(Sec. 34)
The law permits taxpayers to deduct amounts that they have
overpaid on certain other taxes and for which they would
otherwise have been entitled to a refund. Thus, instead of
filing a refund application, a taxpayer can simply credit the
amount of the overpayment against his income tax.
The two types of tax credits referred to are (1) the FICA
(Social Security) tax credit and (2) the federal gasoline
and oil tax credit.
The FICA tax credit can arise if a taxpayer works for two
or more employers during the year. Each employer is
required to withhold the employee’s share of the FICA tax.
For 2009, the Social Security portion of the tax is 6.2%,
imposed on up to $106,800 of earnings, plus 1.45% on all
earnings. Thus the maximum Social Security tax payment
is $6,621.60; any payment in excess of this amount can
be claimed as a credit. There is no wage base cap for the
Medicare portion of FICA, so no overpayment can result
for this tax.
A taxpayer who has such excess FICA withholdings
simply treats this excess as income tax withheld from
his wages or estimated tax paid. It will decrease any tax
liability payable on the taxpayer’s return or increase any
refund he may be entitled to receive.
PRACTICE POINTER: If an employee had excess
9.
Which statement concerning the retirement savings
contributions credit is not correct?
a. The credit may offset the alternative
minimum tax.
b. The credit is figured on Form 8880.
c. No IRA deduction may be claimed, to the
extent that the credit applies.
10. Which of the following credits is not part of the
general business credit?
a. Small employers’ pension plan start-up cost
credit
b. Foreign tax credit
c. Low-income housing credit
11. The maximum earned income credit in 2009 for a
taxpayer with no qualifying child is:
a. $457
b. $3,043
c. $5,656.50
Social Security taxes withheld by a single employer
(e.g., because of an error), the employee does not
claim a credit. Instead, the employer should refund
the excess withholding to the employee.
The federal gasoline and special fuels credit is also treated
as a prepayment of income tax, thus decreasing the tax
liability or increasing any refund.
Although the credit itself is taken on Form 1040, together
with the excess FICA credit, the amount must be computed on separate Form 4136, Credit for Federal Tax Paid
on Fuels, which is attached to the income tax return.
If the gasoline or special fuels on which the credit is taken
were originally purchased for business or income-producing
purposes (such as farm vehicles), the credit must be
included in gross income in the year the credit was taken.
The reason is that the tax was included in the cost of gas
and special fuels purchased and, thus, was deducted from
income. When the taxpayer receives a partial refund on
¶1114
168
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
the federal tax in the following year (via the tax credit), the
cost of the gas and special fuels is in effect reduced, and
that amount must thus be included in gross income.
EXAMPLE: In 2007, farmer Burt Mitchell purchased
20,000 gallons of gasoline at $3 per gallon for use
in his farm operation. He estimates that half of the
gasoline was used for non-highway purposes.
In the spring of 2009, when Burt computed his 2008
income tax return, he claimed a $60,000 deduction for
the cost of the gasoline purchased. At the same time,
he also claimed a gasoline tax credit of $1,830 (10,000
gallons at $0.183 per gallon) for the non-highway-use
gas. Although the $1,830 credit in effect reduces the
cost of the gas from $60,000 to $58,170, it cannot be
treated simply as an offset to the cost because the farm
expenditure was incurred in 2006 and the credit was not
taken until 2008. The $1,830 must therefore be included
as income on the 2009 return.
¶1115 Foreign Tax Credit
(Secs. 27, 901, and 904)
Individuals who pay foreign income taxes on such income as
interest and dividends may be eligible for a tax credit. Generally, the credit is figured on Form 1116, Foreign Tax Credit, but
simplified reporting rules may apply (explained below).
taken over a period of 10 years. The percentage is the
present value of 70% of the basis of new construction or
rehabilitation, 30% of new construction or rehabilitation financed with tax-exempts or federal subsidies, or
30% for the acquisition of low-income housing if it is
acquired more than 10 years after the property is placed
in service or substantially improved.
Certain requirements apply to determine whether the
property can be considered low-income housing.
Limits on the credit. The credit is subject to at-risk limita-
tions. The passive loss rules also come into play in figuring
the amount of the credit that can be claimed. The credit
is treated as arising from a rental activity in which the
taxpayer actively participates so that it can offset a deduction equivalent of up to $25,000 of nonpassive income.
The credit is also subject to the rules applicable to the
general business credit. The basis of property for purposes
of depreciation is not reduced by the credit.
The credit is figured on Form 8586, Low-Income Housing
Credit. Form 8582CR, Passive Activity Credit Limitations, is
used to figure the limits under the passive activity rules. In
addition, Form 8609, Low-Income Housing Credit Allocation
Certificate, must be completed for each eligible project.
PITFALL: If a housing project fails to meet qualifica-
PRACTICE POINTER: Instead of figuring the foreign
tax credit, an individual can choose to deduct the
foreign taxes on Schedule A. Generally, claiming the
credit provides the greater tax benefit, especially for
taxpayers subject to the alternative minimum tax
(which can be reduced by the foreign tax credit).
The foreign tax credit cannot be taken for withholding tax
on dividends unless a minimum holding period is met. The
minimum holding period generally is more than 15 days
during the 30-day period beginning on the date that is 15
days before the date on which the stock becomes ex-dividend. Special holding periods apply to preferred stock.
Simplified reporting. Small investors can claim a foreign
tax credit without having to complete the complicated
Form 1116 if taxes on foreign interest and dividends are
no more than $600 for those filing a joint return ($300
for singles). Simply enter the amount of the foreign taxes
paid as a credit on the appropriate line in the “Tax and
Credits” section of Form 1040.
¶1116 Low-Income Housing Credit (Sec. 42)
The low-income housing credit is a percentage of
qualifying expenditures on low-income housing and is
¶1115
tions at any time within a 15-year period beginning
with the first year the credit is taken, then a portion
of the credit must be recaptured.
PRACTICE POINTER: The low-income housing tax credit
can be used to offset the alternative minimum tax.
Current developments to the low-income housing
credit. The Housing Assistance Tax Act of 2008 contained
several provisions relating to the low-income housing
credit. Most of these provisions apply to buildings placed
in service after July 30, 2008, but their details are beyond
the scope of this publication. For further detail, please refer
to the Housing Assistance Tax Act of 2008.
¶1117 Mortgage Interest Credit (Sec. 25)
Eligible low-income taxpayers who hold a mortgage credit
certificate can claim a credit for part of the interest paid on
their home mortgages. The credit is figured by multiplying
the amount of the interest paid during the year (on the
loan amount covered by the certificate) by the certificate
credit rate shown on the certificate. If the certificate credit
PA R T 1 — C H A P T E R 1 1 — Ta x C r e d i t s
rate is more than 20%, the credit is limited to $2,000. The
excess interest can be deducted as an itemized deduction.
See also ¶822.
Credit for construction of energy-efficient homes
(Sec. 45L). A credit of up to $2,000 can be claimed by
EXAMPLE: Lou Ames, who received a 50% mortgage
a contractor for building a dwelling unit meeting certain
energy criteria. The credit applies only through 2009,
unless Congress extends it.
credit certificate, pays $5,000 for mortgage interest.
He can claim a $2,000 credit and deduct the $3,000
balance as interest if he also itemizes.
Credit for manufacturing energy-efficient appliances
(Sec. 45M). A credit of up to $75 million can be claimed
When two or more persons hold an interest in the residence, the credit must be allocated in proportion to the
interest held.
PRACTICE POINTER: If the only two persons holding the interests are married filing a joint return, the
credit does not have to be allocated.
The mortgage interest credit may not exceed the taxpayer’s tax liability for the tax year, reduced by any other
personal credits to which he is entitled (child care and
credit for the elderly). If the mortgage interest credit
is more than the taxpayer’s tax liability reduced by the
other personal credits, the unused portion of the credit
can be carried over to the next 3 tax years or until used
up, whichever comes first.
NOTE: If the taxpayer is subject to the $2,000 credit
limitation because the certificate credit rate is more
than 20%, no amount over the $2,000 may be carried
over for use in a subsequent year.
Form 8396, Mortgage Interest Credit, is used to figure
the mortgage interest credit and any carryover to a
subsequent year.
NOTE: Income requirements must be met for interest
on qualified mortgage bonds to be excluded from
gross income. In general, the requirement is met if
all owner financing provided under the bond issue is
for mortgagors whose family income is 115% or less
of the applicable area median gross income. These
income requirements also apply to mortgage credit
certificates. The income requirement, in general,
applies to obligations issued after August 15, 1986.
The guidelines for determining the income limits are
found in Rev. Rul. 86-124.
¶1118 Other Credits
There are a number of other credits, most of which apply
to individuals who own businesses that make certain
expenditures.
169
by a manufacturer making appliances that meet certain
energy criteria. The credit applies only through 2010,
unless Congress extends it.
Small employer pension plan start-up credit (Sec.
45E). A credit, designed to cover the cost of administra-
tion and employee education, may be claimed for setting
up a qualified retirement plan. The credit is 50% of
expenses up to $1,000 for a top credit of $500 per year
for the first 3 years of the plan’s existence. The credit,
which had been scheduled to expire at the end of 2010,
has been made permanent.
Only “small employers” are eligible for this credit. A small
employer is one with no more than 100 employees who
received at least $5,000 in compensation from the employer
in the preceding year. The credit may not be claimed
unless the plan covers at least one non-highly compensated
employee (i.e., no credit may be claimed if a one-person
company sets up a plan to cover the owner-employee).
The credit is figured on Form 8881, Credit for Small
Employer Pension Plan Startup Costs.
PRACTICE POINTER: The taxpayer may elect to
claim the credit starting with the year prior to the year
in which the plan is first set up. This can produce a
tax refund from the prior year.
Employer-provided child care credit (Sec. 45F). As an
incentive to small and midsized companies to provide
their employees with child care, a credit may be taken for
facilities or referral services. The credit is 25% of qualified
expenses related to child care facilities and 10% of referral
expenditures, for a maximum credit of $150,000.
If a taxpayer sets up a facility, the basis of the property
must be reduced by the credit. Further, if the taxpayer
ceases to use the facility within a set period, there is a
recapture of the credit.
The credit is figured on Form 8882, Credit for EmployerProvided Child Care Facilities and Services.
In 2008 and 2009
a credit may be claimed for making a qualified equity
New markets credit (Sec. 45D).
¶1118
170
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
investment in a qualified community development entity.
The credit is 5% for the first three credit allowance dates
and 6% for the next three allowance dates (the allowance date runs from the date on which the investment
is initially made). Recapture of the credit applies if there
is a recapture event within the first 7 years of the investment. There is an annual national limit on investments
for purposes of the credit ($1.5 billion in 2002).
The credit is figured on Form 8874, New Markets Credit.
Business energy credits (Sec. 48a). A 10% credit for
the costs of solar and geothermal energy has been made
permanent.
Other fuel credits. Other fuel or energy-related credits
include a credit for alcohol used as fuel, an enhanced
oil recovery credit, and a credit for electricity produced
from certain renewable resources (e.g., wind).
Agricultural chemicals security credit. There is a new
credit for businesses that employ security measures with
respect to agricultural chemicals.
A first-time homebuyer’s credit for a 2009 purchase of a
residence claimed on a 2008 return is figured using the
2009 rules (IR-2009-27, 3/18/09).
The fact that there is a co-signer to the mortgage does
not bar the eligible homebuyer from claiming the credit
(Chief Counsel Letter, Info 2009-0101, 6/26/09).
The IRS has provided guidance on residential energy
changes made by the American Recovery and Reinvestment Act of 2009 (Notice 2009-41, IRB 2009-19, 933).
The IRS has provided guidance on the two new
groups for the work opportunity credit (Notice
2009-28, IRB 2009-24, 1082 and Notice 2009-69,
IRB 2009-35, 261).
The Worker, Homeownership, and Business Assistance Act of 2009 extended the first-time homebuyer
credit, raised the MAGI limits, and created a lesser
credit for those who owned a home for five of eight
years preceding a purchase (H.R. 3548 with S.A.
2712).
Economic stimulus credit. Taxpayers who were entitled
to an economic stimulus payment under the Economic
Stimulus Act of 2008 but did not receive one can obtain
the payment by claiming the recovery rebate credit.
Minimum tax credit. There is a credit for those who have
paid alternative minimum tax in prior years. For 2009,
for those with long-term unused minimum tax credits,
there is even a refundable credit. See ¶2506.
¶1119 Recent Developments
Affecting Tax Credits
The first-time homebuyer’s credit can be allocated among
two or more eligible first-time homebuyers who are not married to each other (Notice 2009-12, IRB 2009-6, 446).
For further information on tax credits, see IRS Publication 334, Tax Guide for Small Business, Part Four,
General Business Credit; IRS Publication 503, Child
and Dependent Care Expenses; IRS Publication 514,
Foreign Tax Credit for Individuals; IRS Publication
524, Credit for the Elderly or the Disabled; IRS Publication 596, Earned Income Credit; and IRS Publication 970, Tax Benefits for Higher Education.
CPE NOTE: When you have completed your study
and review of Chapters 8–11, which comprise
Quizzer Module 2, you may wish to take the Quizzer
for this Module.
CPE Quizzer instructions can be found on page 479.
For your convenience, you can also take this Quizzer
online at www.cchtestingcenter.com.
¶1119
428
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
¶3506 Answers to Questions from Chapter 6 —
Gross Income: Salaries, Wages, and
Employee Benefits
Even though the meals are eaten on
company grounds, they are not for the employer’s convenience, so reimbursement is not excludable.
a. Incorrect. Meals on the employer’s premises for the
convenience of the employer are excludable under Code
Sec. 119.
b. Incorrect. Occasional supper money is an excludable
de minimis fringe benefit.
1. c. Correct.
2. c. Correct. For 2009, the limit on parking as a tax-free
fringe benefit is $230 per month.
a. Incorrect. Free parking is a tax-free fringe benefit up
to a set limit per month.
b. Incorrect. The $120 limit applies to bicycle commuting.
3. False. Correct.
Tips are not considered tax-free
gifts.
True. Incorrect. Tips
are fully taxable as compensation
because they are received for services rendered.
The taxable amounts include salary,
awards, and the gift certificate, for a total of $36,750.
b. Incorrect. Although the salary, awards, and gift
certificate are taxable, the group-term life insurance
premiums are not.
c. Incorrect. The taxable amount does not include medical coverage and group-term life insurance premiums for
coverage up to $50,000.
4. a. Correct.
5. c. Correct. This fringe benefit is fully tax-free.
a. Incorrect. Because none of the advice related to tax-
able items, such as return preparation, his is not taxable
on the benefit.
b. Incorrect. Howard’s income does not impact the
amount of the benefit that can be excluded.
¶3507 Answers to Questions from Chapter 7 —
Gross Income: Miscellaneous Exclusions
and Inclusions
1. a. Correct. One-half of the excess of modified AGI
plus one-half of Social Security benefits is $750.
b. Incorrect. Although Joe’s MAGI puts him in the 50%
inclusion category, this does not mean all of the excess
over the $25,000 base amount is taxable.
¶3506
c. Incorrect. Although Joe’s MAGI puts him in the 50%
inclusion category, this does not mean 50% of benefits
are taxable.
2. b. Correct. The interest of $300 is taxable, even though
the underlying personal injury award is tax-free.
a. Incorrect. Although the damages are tax-free, the
interest is taxable, so the entire recovery is not tax-free.
c. Incorrect. The damages for the personal injury are
not taxable; only the interest is taxable.
3. a. Correct. Most ordinary compensation to military
personnel is taxable, including a reenlistment bonus.
b. Incorrect. There is a special exclusion from income
for an allowance for uniforms.
c. Incorrect. There is a special exclusion for combat
zone compensation.
4. b. Correct. Alimony in any amount is taxable to the
recipient.
Child support is not taxable to the child
or to the recipient parent.
c. Incorrect. Property settlements are nontaxable
events.
a. Incorrect.
5. False. Correct. Sue can obtain a benefit from the
passive activity loss in the future (to offset passive activity
income or when she disposes of the passive activity).
True. Incorrect. Although Sue’s AGI and lack of passive
activity income prevents her from claiming any of the
$14,000 loss in the current year, the loss can be carried
forward and used in a future year to offset passive activity
income, or when she disposes of the passive activity.
¶3508 Answers to Questions from Chapter 8 —
Deductions: In General, Medical
Expenses, Taxes, and Interest
1. a. Correct. Student loan interest is an adjustment to
gross income. Taxpayers do not have to itemize to claim
this deduction.
b. Incorrect. Mortgage interest on a principal residence
is deductible only as an itemized deduction.
c. Incorrect. Investment interest, to the extent deductible, is allowed only as an itemized deduction.
2. b. Correct. Only medical expenses in excess of 7.5%
of AGI are deductible.
The 2% floor applies to miscellaneous
itemized deductions, not to medical deductions.
a. Incorrect.
PA R T 7 — C H A P T E R 3 5 — A n s w e r s t o S t u d y Q u e s t i o n s
c. Incorrect. The 10% floor for medical expenses applies
a. Incorrect. Donations to a local church are a deductible
only for alternative minimum tax purposes.
charitable contribution.
c. Incorrect. Donations to the Veterans of Foreign Wars
of the United States are deductible.
3. c. Correct. Social Security tax paid by the employee
is nondeductible from adjusted gross income.
a. Incorrect. State income tax is deductible as an itemized deduction.
b. Incorrect. Local property tax is deductible as an
itemized deduction.
4. b. Correct. Points paid to acquire a principal residence
are deductible, provided they meet certain tests.
a. Incorrect. Courts have held that interest on a tax
deficiency arising from Schedule C is not deductible.
c. Incorrect. Interest on a loan to buy tax-exempt securities is not deductible under Code Sec. 265.
5. c. Correct. Both acquisition indebtedness of $300,000
and home equity debt of $50,000 are taken into account
in figuring deductible mortgage interest.
a. Incorrect. Although the $300,000 loan is acquisition
indebtedness, the interest on which is fully deductible,
this is not the only loan on which interest is deductible.
b. Incorrect. Interest on a home equity loan is not limited to the portion used to improve the residence, so it
is not limited to acquisition debt of $300,000 plus the
$25,000 roof.
6. False. Correct. Student loan interest paid is an adjust-
ment to gross income.
True. Incorrect. Student loan interest is not required to
be deducted as an itemized deduction.
7. c. Correct. Dividends taxed at 15% are not treated as
investment income. An election can be made to include
them as investment income only if they are taxed at
ordinary income rates.
a. Incorrect. Annuity benefits are part of investment
income.
b. Incorrect. Interest income is part of investment
income.
¶3509 Answers to Questions from Chapter 9 —
Deductions: Contributions and
Miscellaneous Deductions
1. b. Correct. No deduction is allowed for contributions
to an international charity, even though the funds are
used for religious purposes.
429
2. a. Correct. Parochial school fees are considered pay-
ment for services, and, thus, are not deductible.
b. Incorrect. Pew rentals are deductible as a charitable
contribution.
c. Incorrect. Membership dues are deductible as a
charitable contribution.
3. a. Correct. Cash donations in any amount must be
substantiated by a written acknowledgment or bank
statement.
b. Incorrect. In the past, only donations of $250 or more
required a written statement from the charity.
c. Incorrect. Donations exceeding $500 are the threshold
for requiring donors of property donations to complete
Form 8283.
4. b. Correct. 30% is the limit on donations to a public
charity (in the absence of a special election).
a. Incorrect. 20% is the limit on donations of capital
gain property to a private nonoperating foundation.
c. Incorrect. 50% is the limit on donations to a public
charity only if the donor elects to reduce the gift by the
amount of appreciation.
5. c. Correct. Unused charitable contribution deductions can be carried forward for up to five years.
a. Incorrect. There is no unlimited carryover for charitable contribution deduction purposes.
b. Incorrect. Two years is the net operating loss carryback; it is not the carryforward limit on unused charitable contribution deductions.
Because the ski chalet itself was not
donated, but merely the use of it for a limited period, no
charitable contribution deduction can be claimed.
True. Incorrect. No deduction can be claimed for the
use of property.
6. False. Correct.
7. a. Correct. No deduction can be claimed if the donor
retains an interest in property. Allowing a viewing of
art that continues to be owned by a taxpayer is not
deductible.
b. Incorrect. Even though a transfer of property to a
charitable remainder trust enables the donor to retain an
¶3509
430
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
interest in the property, as long as the trust conforms to
certain requirements, the donor can claim a charitable
deduction for the remainder interest.
c. Incorrect. Even though partial interests in property
usually must be made to a charitable remainder trust or
pooled income fund in order to claim a charitable contribution deduction, under a special rule, a remainder
interest in a farm can be given directly to a charity, with
a current deduction allowed for it.
8. a. Correct. Gambling
losses are miscellaneous itemized deductions that are not subject to the 2% floor.
b. Incorrect. Tax return preparation fees are miscellaneous itemized deductions subject to the 2% floor.
c. Incorrect. Union dues are miscellaneous itemized
deductions subject to the 2% floor.
¶3510 Answers to Questions from Chapter 10 —
Tax Computation
1. c. Correct. There
is a 33% and a 35% rate, but no
31% rate.
a. Incorrect. There is a 15% rate.
b. Incorrect. There is a 25% rate.
2. b. Correct. Because their taxable income is $100,000
or more, they must use the new Tax Computation Worksheet to figure their liability.
a. Incorrect. Because their taxable income is $100,000
or more, they cannot use the Tax Tables.
c. Incorrect. Because they do not have any qualifying
dividends and capital gains, they do not use the Qualifying Dividends and Capital Gain Worksheet.
Because taxable income is between
$52,450 and $52,500, the correct tax liability under the
column for married filing jointly is $7,036.
b. Incorrect. For taxable income between $52,450
and $52,500, $7,971 is the tax liability for a head of
household.
c. Incorrect. For taxable income between $52,450
and $52,500, $9,306 is the tax liability for a single
taxpayer.
3. a. Correct.
4. False. Correct. All the tax brackets have been adjusted
for inflation in 2009.
True. Incorrect. Although in the past the 10% bracket
had not been adjusted for inflation, the 2009 Tax
Table and Tax Computation Worksheet reflect an adjustment for inflation.
¶3510
The taxpayer must use the Qualifying
Dividends and Capital Gain Worksheet because of having qualifying dividends and net capital gains.
a. Incorrect. Tax Tables would be used but for the dividends and gains.
b. Incorrect. The Tax Computation Worksheet is used
only if taxable income is $100,000 or more.
5. c. Correct.
6. b. Correct.
Income averaging is limited to farm/
fishing income.
a. Incorrect. Income averaging does not apply to nonfarm or nonfishing income.
c. Incorrect. Farm income averaging does apply for
alternative minimum tax.
7. c. Correct. $3,650 × 5 =
a. Incorrect. They are not
$18,250.
limited to exemptions for
themselves, so $7,300 is not correct.
b. Incorrect. They are not limited to exemptions for
their dependents, so $10,950 is not correct.
8. b. Correct. Whether the deduction for exemptions is
reduced depends only on adjusted gross income.
a. Incorrect. Gross income, which is a part of AGI, is taken
into account but is not the basis for the reduction.
c. Incorrect. Taxable income is not taken into account
in determining the reduced exemption deduction.
9. c. Correct. The elimination of the phaseout for per-
sonal exemptions will not begin until 2010.
a. Incorrect. The dollar amount for each exemption in
2009 is $3,650, so this is a correct statement.
b. Incorrect. Taxpayers who have a large number of
exemptions may find themselves subject to the alternative minimum tax, because exemptions are not deductible for this tax.
10. a. Correct. $18.49 is rounded down to $18, because
the pennies are not at or above 50 cents.
b. Incorrect. $18.50 is rounded up to $19, because it
is at 50 cents.
c. Incorrect. $18.51 is rounded up to $19, because it
is above 50 cents.
¶3511 Answers to Questions from Chapter 11 —
Tax Credits
1. False. Correct. A tax credit is a dollar-for-dollar
reduction of tax, so its value is always 100% of the
credit amount.
PA R T 7 — C H A P T E R 3 5 — A n s w e r s t o S t u d y Q u e s t i o n s
Although the value of a deduction
depends on the taxpayer’s tax bracket, the value of a
credit does not.
True. Incorrect.
The maximum dependent care credit is
20% of expenses up to $6,000, or $1,200.
b. Incorrect. Although the maximum credit is 20%, it
cannot be applied to all the expenses to produce a credit
of $1,500. Expenses on which the credit is figured are
limited to $6,000.
c. Incorrect. Jane’s AGI exceeds $43,000, so she is limited to a 20% credit. The 35% credit rate applies only
if AGI is not over $15,000 (which would have resulted
in a $2,100 credit).
2. a. Correct.
3. a. Correct. The amount of eligible expenses ($3,000
is the maximum allowed for one child, $6,000 for two or
more children) must be reduced by employer reimbursement ($2,000), leaving $1,000 of expenses on which
the credit is figured.
b. Incorrect. Because the employer reimbursed $2,000,
the parent cannot figure the credit on the $3,000 regular
expense limit.
c. Incorrect. $5,000 is the maximum child care exclusion
if the employer pays for this amount.
4. False. Correct. Because the credit may not be claimed
by someone receiving even modest Social Security benefits, it is intended to help those who do not receive this
type of income.
True. Incorrect. The credit is designed to assist lowincome taxpayers who receive little or no tax-exempt
Social Security benefits.
5. c. Correct. Taxpayers with modified AGI below set levels can claim a top credit of $1,000 per eligible child.
a. Incorrect. $600 was the child tax credit amount before
it was changed in 2003.
b. Incorrect. $700 is the child tax credit amount that
had been set to apply in 2005 before Congress changed
the law.
6. a. Correct. The top credit of $2,000 must be reduced,
because Sue’s modified AGI is over $50,000; the reduction
is [$55,000 – $50,000]/$10,000, or 0.2, which is multiplied by the maximum credit of $2,000, for a reduction
of $1,000. The credit is $2,000 – $1,000 = $1,000.
b. Incorrect. $2,000 is the credit limit that would
have applied if Sue’s modified AGI in 2009 was not
over $50,000.
431
c. Incorrect. The
$2,500 is the American Opportunity
credit limit for 2009.
7. a. Correct. Surrogate parenting costs do not qualify
for the adoption credit.
b. Incorrect. Adoption fees qualify for the adoption
credit.
c. Incorrect. Court costs qualify for the adoption
credit.
8. b. Correct. Starting in 2009, the credit is 30% of
eligible costs, with no dollar limit.
a. Incorrect. Prior to 2009, the credit with respect to
solar panels was limited to $2,000.
c. Incorrect. The credit is not the full cost of the expenditure, because there is a credit percentage (30%).
9. c. Correct. The credit may be claimed in addition to
the IRA deduction.
a. Incorrect. Although certain personal credits may not
offset the alternative minimum tax, this credit may.
b. Incorrect. Form 8880 is the correct form for figuring
the credit.
10. b. Correct. The foreign tax credit is not part of the
general business credit.
a. Incorrect. The small employers pension plan startup
cost credit is part of the general business credit.
c. Incorrect. The low-income housing credit is part of
the general business credit, even though an investor may
not necessarily be in business.
$457 is the earned income credit limit
in 2009 for a taxpayer with no qualifying child.
b. Incorrect. $3,043 is the credit limit for a taxpayer
with one qualifying child.
c. Incorrect. $5,656.50 is the credit limit for a taxpayer
with three or more qualifying children.
11. a. Correct.
¶3512 Answers to Questions from Chapter 12 —
Gain or Loss on the Sale or Exchange of
Property
Although her loss is $8,300, she cannot
recognize it, because the car is personal property.
a. Incorrect. Her loss is not $8,200, because this fails
to take the selling expense into account.
b. Incorrect. Although her loss is $8,300 ($3,800 –
[$12,000 + $100]), it is not recognized.
1. c. Correct.
¶3512
1040 PREPARATION AND PLANNING GUIDE
Appendix A: Filled-In Form 1040
3601
Illustrative Filled-In Form 1040
Reproduced below is an illustrative Form 1040 for
the calendar year 2009 and worksheets (not filed with
the return). The taxpayers are John C. Scott and Mabel
A. Scott, his wife, who file a joint return and report on
the cash basis.
1.
2. John Scott (SS# 611-19-5023), a U.S. citizen, lives
at 145 Oakview Lane, Pittsburgh, PA 15218. He is 66
years old, and his wife, Mabel (SS# 658-01-6253), is
56. Both have good vision. Their son, Howard (SS#
711-12-5501), age 27, is in his third year of full-time
graduate study at the University of Pittsburgh. Howard
was supported during the year as follows:
By earnings from a part-time job . . . . . . . . . . . . . . . .
$2,000
By father . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,000
$14,000
Their daughter Ann (SS # 543-21-9876), is a 16-year-old
high school student who does not work.
3.
Mr. Scott received $6,000 of Social Security benefits.
The Scotts entirely supported Mr. Robert R. Smith
(SS# 130-12-1089), age 80, whose wife (who died five
years ago) was Mr. Scott’s aunt. R. R. Smith had no gross
income, and he has lived in the Scott residence for the
past five years.
4.
5. Mrs. Scott has been controller of the Johnson Manufacturing Company in Pittsburgh, Pa., since May 1,
2009. Her gross salary for the eight months was $43,000
($5,375 per month). Her payroll deductions were $8,592
federal withholding tax and $3,289.50 FICA tax. While
away from home on company business, she spent $1,000
for travel and $500 for lodging. To cover these kinds of
expenses, Scott received an expense allowance of $375
per month for six months that her employer did not
report on her Form W-2. She accounted to her employer
for her expenses, but she was not required to return the
extra $750 of allowances over her expenses. Thus, this
surplus allowance was reported on her W-2. In addition,
while away from home on company business, Scott also
incurred $750 of meals and entertainment expenses,
which her employer reimbursed in full. Schedule M must
be completed so that the Scotts receive the making work
pay credit with respect to her wages.
Before her employment with the Johnson Manufacturing Company, Mrs. Scott had been assistant
controller with the Elaborate Foundry Company in St.
Louis. Her gross salary there for 2009 totaled $8,400
(four months at $2,100 per month). Among her payroll
deductions were $1,108 Federal withholding tax and
$642.60 FICA tax.
6.
7. The Scotts paid $1,025 for moving expenses from St.
Louis to Pittsburgh, which is a distance of 852 miles.
When they resided in St. Louis, Mrs. Scott had lived 10
miles from the Elaborate Foundry Company.
Mr. Scott operates a television repair shop as a sole
proprietorship under the name of Scott Electronics
Shop. The books are kept on the accrual basis, and net
income before taxes for 2009 was $3,000. This income
is determined on Schedule C.
8.
9. The Scotts held the following bonds during the entire
year. All were purchased at par and are in joint name.
Description
Date
Issued
Principal
Interest
Rate
Interest
Received
AB
Corporation
Bonds
7/1/98
$10,000
5%
$500
CD
Corporation
Bonds
1/1/04
6,000
7%
420
Borough
of Bellevue
Bonds
6/1/84
10,000
4½%
450
AE
Corporation
Bonds
5/1/99
9,000
7½%
675
10. Mr. Scott received ordinary dividends of $692 on an
investment in La Vie, a corporation in a foreign country
(which is not traded on a U.S. exchange), and that income
¶3601
442
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
is also subject to U.S. income tax. Mr. Scott is entitled to
a $50 credit for tax paid to the foreign country. Show the
income on the appropriate line on Form 1040.
11. Mr. and Mrs. Scott received ordinary cash dividends
from ABC Corp. of $2,800 during the year and capital gain
distributions in December from ABC Corp. of $1,000.
12. In 2009, the Scotts received $2,100 as a refund of state
income taxes paid in 2008. In 2008, they had itemized
their deductions. (Assume the refund is fully taxable).
13. While Mr. Scott was making a speech on the evening
of June 14 at Soldiers and Sailors Memorial Hall, his
personal automobile, which he had purchased only five
months before for $12,000 cash, was stolen. The automobile was never recovered, and the insurance company
paid him $11,300 in full settlement on December 14,
2009. Fair market value of the automobile immediately
before the theft was $11,500. Mr. Scott received an
honorarium of $25 for the speech.
14. Mr. Scott served on jury duty, receiving payment
of $375.
The Scotts’ stock holdings and transactions were as
shown below.
15.
Date
Acquired
or Basis
Date
Date
of
Sale
FF Co.,
Common
(see Note
(a), below)
2/5/87
6/12/09 $4,000
ZZ Co.,
Common
(see Note
(b), below)
7/2/09
---
500
---
---
HH Co.,
Preferred
(see Note
(c), below)
3/1/03
3/15/09
4,000
25,000
50
GG Co.,
Common (see
Note (d),
below, and
(16–17))
10/11/86
Kind of
Stock
Cost
or
Other
Basis
8/31/09
800
Selling
Price
Expense
of Sale
$31,000
$90
1,100
40
Notes on stock holdings and transactions:
a. FF stock purchased for cash on February 5, 1987.
b. ZZ stock purchased for cash on July 2, 2009. On November
15, 2009, the ZZ Corporation was adjudicated bankrupt, and
the stock was worthless.
¶3601
c. The stock of HH Company was inherited from Mrs. Scott’s
father, who purchased it in 1941 for $6,000. The father died
on March 1, 2003, at which date the stock was worth $4,000,
and its fair market value when distributed by the executor on
July 1, 2004, was $4,200. The executor made no election to
use alternate valuation for estate tax purposes.
d. One hundred shares of GG Company common stock (certificate
No. 18523) purchased on October 11, 1986, for $80 a share.
16. On July 24, 2009, Mr. Scott received certificate No.
29431 for 10 shares of GG Company common stock as
a 10 percent stock dividend on the common stock. Fair
market value per share on this date was $95.
17. On August 31, 2009, Mr. Scott sold 10 shares of GG
Co. (certificate No. 29431) at $110 per share.
Mr. Scott made a $1,000 loan to A. Blade on
December 8, 1994. On September 1, 2009, the loan
was deemed worthless as Blade died after a long illness
and left no estate.
18.
19. The Scotts have a $20,000 short-term capital loss
carryover from 2008.
20. In addition to any allowable itemized deductions in
the preceding information, Mr. and Mrs. Scott had the
following allowable other itemized deductions: contributions by check, $1,850; mortgage interest, $4,440; state
and local income taxes, $5,200 (their state and local sales
taxes were less than their income taxes and they did not
purchase a vehicle on or after February 17, 2009); real
estate taxes, $6,100.
21. Mr. and Mrs. Scott have made payments totaling $1,000 on their 2009 estimated taxes (Form
1040-ES). Neither one owes any prior years’ taxes,
nor did they have any interest in or connection with
foreign trusts or bank accounts. To the Presidential
election fund check-off, both answer “yes.”
NOTE: On all of the following forms, bracketed numbers reference the paragraph numbers above as the
source for the line’s entry.
Form
APPENDIX A: Filled-In Form 1040
1040
Label
(See
instructions
on page 14.)
Use the IRS
label.
Otherwise,
please print
or type.
L
A
B
E
L
H
E
R
E
Presidential
Election Campaign
Filing Status
Check only one
box.
Exemptions
Department of the Treasury—Internal Revenue Service
For the year Jan. 1–Dec. 31, 2009, or other tax year beginning
Last name
Your first name and initial
John C.
Scott
If a joint return, spouse’s first name and initial
Last name
Mabel A.
Scott
Adjusted
Gross
Income
OMB No. 1545-0074
Your social security number
6
6
Apt. no.
6a
b
✔
Spouse
.
Dependents:
.
.
.
.
.
.
.
b
10
11
12
13
14
15a
16a
17
18
19
20a
21
22
.
.
.
.
.
.
5
2
3
8
0
1 6
2
5
You must enter
your SSN(s) above.
3
✔
You
✔
Spouse
Qualifying widow(er) with dependent child (see page 16)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(3) Dependent’s (4) ✓ if qualifying
relationship to you child for child tax
credit (see page 17)
7 1 1 1 2 5 5 0 1 son
5 4 3 2 1 9 8 7 6 daughter
1 3 0 1 2 1 0 8 9 uncle
Total number of exemptions claimed
0
child’s name here. 5
(2) Dependent’s
social security number
Last name
5
Head of household (with qualifying person). (See page 15.) If the
Yourself. If someone can claim you as a dependent, do not check box 6a .
✔
1 9
qualifying person is a child but not your dependent, enter this
Married filing separately. Enter spouse’s SSN above
and full name here. Howard Scott
Ann Scott
Robert Smith
7
8a
b
9a
4
Single
Married filing jointly (even if only one had income)
✔
1
Checking a box below will not
change your tax or refund.
Check here if you, or your spouse if filing jointly, want $3 to go to this fund (see page 14)
1
2
3
1
Spouse’s social security number
City, town or post office, state, and ZIP code. If you have a foreign address, see page 14.
d
Enclose, but do
not attach, any
payment. Also,
please use
Form 1040-V.
, 20
Pittsburgh, PA 15218
If more than four
dependents, see
page 17 and
check here If you did not
get a W-2,
see page 22.
IRS Use Only—Do not write or staple in this space.
145 Oakview Lane
(1) First name
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
(99)
, 2009, ending
Home address (number and street). If you have a P.O. box, see page 14.
c
Income
2009
U.S. Individual Income Tax Return
✔
.
.
.
.
.
.
.
.
.
.
.
Wages, salaries, tips, etc. Attach Form(s) W-2
.
Taxable interest. Attach Schedule B if required .
Tax-exempt interest. Do not include on line 8a .
.
.
.
.
.
.
.
.
.
.
8b
.
.
.
.
.
.
.
.
.
.
. .
. .
450
.
.
.
Boxes checked
on 6a and 6b
No. of children
on 6c who:
● lived with you
2
2
● did not live with
you due to divorce
or separation
(see page 18)
0
Dependents on 6c
not entered above
1
Add numbers on
lines above 5
52,150 [Sch 1]
7
8a
1,595 [9]
. . . . . . . . . . .
2,800
9b
Qualified dividends (see page 22) . . . . . . .
Taxable refunds, credits, or offsets of state and local income taxes (see page 23) . .
Alimony received . . . . . . . . . . . . . . . . . . . . .
9a
3,492 [10, 11]
10
11
2,100 [12]
Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . .
Capital gain or (loss). Attach Schedule D if required. If not required, check here Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . .
15a
b Taxable amount (see page 24)
IRA distributions .
b Taxable amount (see page 25)
Pensions and annuities 16a
12
13
14
Ordinary dividends. Attach Schedule B if required
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . .
Unemployment compensation in excess of $2,400 per recipient (see page 27) . . .
6,000
b Taxable amount (see page 27)
Social security benefits 20a
Other income. List type and amount (see page 29) jury duty, income from speech
Add the amounts in the far right column for lines 7 through 21. This is your total income 23
Educator expenses (see page 29)
.
23
24
25
Certain business expenses of reservists, performing artists, and
fee-basis government officials. Attach Form 2106 or 2106-EZ
Health savings account deduction. Attach Form 8889 .
24
25
26
27
28
Moving expenses. Attach Form 3903 . . . . .
One-half of self-employment tax. Attach Schedule SE
Self-employed SEP, SIMPLE, and qualified plans
.
.
.
.
26
27
28
29
30
31a
Self-employed health insurance deduction (see page 30)
Penalty on early withdrawal of savings . . . . . .
Alimony paid b Recipient’s SSN 29
30
31a
32
33
34
IRA deduction (see page 31)
. . . . .
Student loan interest deduction (see page 34)
Tuition and fees deduction. Attach Form 8917
32
33
34
35
36
37
35
Domestic production activities deduction. Attach Form 8903
Add lines 23 through 31a and 32 through 35 . . . . . . .
Subtract line 36 from line 22. This is your adjusted gross income
.
.
.
.
443
.
.
.
.
.
.
.
.
.
.
.
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 97.
3,000 [8]
27,620 [15-19]
15b
16b
17
18
19
20b
5,100 [3]
400 [13-14]
95,457
21
22
1,025
212
.
.
.
.
.
.
.
.
.
.
[7]
[8]
.
Cat. No. 11320B
1,237
94,220
36
37
Form
1040
(2009)
¶3601
444
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Page 2
Form 1040 (2009)
38
Tax and
Credits
39a
b
Standard
Deduction
for—
● People who
check any
box on line
39a, 39b, or
40b or who
can be
claimed as a
dependent,
see page 35.
● All others:
Single or
Married filing
separately,
$5,700
Married filing
jointly or
Qualifying
widow(er),
$11,400
Head of
household,
$8,350
40a
b
41
42
.
38
94,220
Blind. Total boxes
Blind. checked 39a
If your spouse itemizes on a separate return or you were a dual-status alien, see page 35 and check here 39b
Itemized deductions (from Schedule A) or your standard deduction (see left margin) . .
40a
17,590 [2]
41
76,630
42
43
18,250 [2, 4]
58,380
Amount from line 37 (adjusted gross income)
. . . .
✔ You were born before January 2, 1945,
Check
Spouse was born before January 2, 1945,
if:
.
.
.
{
.
.
.
.
.
.
}
If you are increasing your standard deduction by certain real estate taxes, new motor
vehicle taxes, or a net disaster loss, attach Schedule L and check here (see page 35) . 40b
Subtract line 40a from line 38 . . . . . . . . . . . . . . . . . . .
Exemptions. If line 38 is $125,100 or less and you did not provide housing to a Midwestern
displaced individual, multiply $3,650 by the number on line 6d. Otherwise, see page 37 . .
43
Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- .
44
45
46
Tax (see page 37). Check if any tax is from:
a
Form(s) 8814
Alternative minimum tax (see page 40). Attach Form 6251 . . .
.
b
.
.
Add lines 44 and 45 .
.
.
.
.
.
.
.
47
48
Foreign tax credit. Attach Form 1116 if required .
.
.
.
49
50
51
52
53
54
55
49
Education credits from Form 8863, line 29 . . . . .
50
Retirement savings contributions credit. Attach Form 8880
51
Child tax credit (see page 42) . . . . . . . . .
52
Credits from Form: a
8396 b
8839 c
5695
3800 b
8801 c
53
Other credits from Form: a
Add lines 47 through 53. These are your total credits . . . . .
Subtract line 54 from line 46. If line 54 is more than line 46, enter -0-
Other
Taxes
Payments
61
62
63
If you have a
qualifying
child, attach
Schedule EIC.
64a
b
Paid
Preparer’s
Use Only
.
.
.
.
.
.
47
48
.
.
.
50
3,361
3,361
[10]
1,000
.
.
.
.
.
.
.
.
b
.
.
.
[2, 22]
.
.
.
.
.
. .
8919
.
.
.
.
54
1,050
2,311
424
56
57
Self-employment tax. Attach Schedule SE . . . .
Unreported social security and Medicare tax from Form:
58
59
60
Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required
. .
AEIC payments b
Household employment taxes. Attach Schedule H
Additional taxes: a
Add lines 55 through 59. This is your total tax . . . . . . . . . . . . .
9,700
61
Federal income tax withheld from Forms W-2 and 1099 . .
1,000
62
2009 estimated tax payments and amount applied from 2008 return
800
63
Making work pay and government retiree credits. Attach Schedule M
58
59
60
2,735
71
72
11,500
8,765
73a
8,765
. . . .
a
4137
.
.
.
.
.
.
64a
.
.
.
.
.
.
Refundable education credit from Form 8863, line 16 . .
First-time homebuyer credit. Attach Form 5405 . . .
Amount paid with request for extension to file (see page 72)
.
.
.
65
66
Earned income credit (EIC) . . . .
64b
Nontaxable combat pay election
Additional child tax credit. Attach Form 8812
Excess social security and tier 1 RRTA tax withheld (see page 72)
67
68
69
70
71
Credits from Form: a
2439 b
4136 c
8801 d
8885 70
Add lines 61, 62, 63, 64a, and 65 through 70. These are your total payments .
72
If line 71 is more than line 60, subtract line 60 from line 71. This is the amount you overpaid
75
76
Third Party
Designee
Joint return?
See page 15.
Keep a copy
for your
records.
.
44
45
46
55
56
57
Direct deposit? 73a
See page 73
b
and fill in 73b,
73c, and 73d, d
or Form 8888.
74
Sign
Here
.
Form 4972 .
. . . .
67
68
69
Amount
You Owe
.
Credit for child and dependent care expenses. Attach Form 2441
65
66
Refund
.
.
.
.
Amount of line 72 you want refunded to you. If Form 8888 is attached, check here
c Type:
Routing number
Checking
.
.
Savings
Account number
Amount of line 72 you want applied to your 2010 estimated tax 74
Amount you owe. Subtract line 71 from line 60. For details on how to pay, see page 74 .
76
Estimated tax penalty (see page 74) . . . . . . . .
Do you want to allow another person to discuss this return with the IRS (see page 75)?
Designee’s
name Phone
no. 75
Yes. Complete the following.
✔
No
Personal identification
number (PIN)
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief,
they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Date
Your occupation
Spouse’s signature. If a joint return, both must sign.
Date
Spouse’s occupation
Preparer’s
signature
Firm’s name (or
yours if self-employed),
address, and ZIP code
Daytime phone number
Preparer’s SSN or PTIN
Date
Check if
self-employed
EIN
Phone no.
Form 1040 (2009)
¶3601
APPENDIX A: Filled-In Form 1040
Itemized Deductions
SCHEDULE A
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on Form 1040
John C. Scott and Mabel A. Scott
Medical
and
Dental
Expenses
Taxes You
Paid
(See
page A-2.)
1
2
3
4
5
6
7
8
Interest
You Paid
(See
page A-5.)
Note.
Personal
interest is
not
deductible.
Gifts to
Charity
If you made a
gift and got a
benefit for it,
see page A-7.
Attach
to Form 1040.
See
OMB No. 1545-0074
2009
Instructions for Schedule A (Form 1040).
Attachment
Sequence No. 07
Your social security number
f
o
s
a
9
t
0
f
0
a
2
r
/
D /11
8
0
Caution. Do not include expenses reimbursed or paid by others.
Medical and dental expenses (see page A-1) . . . . .
94,220
2
Enter amount from Form 1040, line 38
Multiply line 2 by 7.5% (.075) . . . . . . . . . .
Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- .
State and local (check only one box):
a ✔ Income taxes, or
. . . . . . . . . .
b
General sales taxes
Real estate taxes (see page A-5) . . . . . . . . .
New motor vehicle taxes from line 11 of the worksheet on
back. Skip this line if you checked box 5b . . . . . .
Other taxes. List type and amount 9 Add lines 5 through 8 . . . . . . . . . . . . . .
10 Home mortgage interest and points reported to you on Form 1098
Other
Miscellaneous
Deductions
611-19-5023
1
7,067
3
.
.
.
.
.
.
.
5
5,200
6
6,100
.
4
0
[20]
7
8
. .
10
.
.
.
.
.
.
9
11,300
4,440
[20]
11 Home mortgage interest not reported to you on Form 1098. If
paid to the person from whom you bought the home, see page
A-6 and show that person’s name, identifying no., and address 11
12 Points not reported to you on Form 1098. See page A-6 for
special rules . . . . . . . . . . . . . . . .
13 Qualified mortgage insurance premiums (see page A-6) .
14 Investment interest. Attach Form 4952 if required. (See page A-6.)
15 Add lines 10 through 14 . . . . . . . . . . . . .
16 Gifts by cash or check. If you made any gift of $250 or
more, see page A-7 . . . . . . . . . . . . .
17 Other than by cash or check. If any gift of $250 or more, see
page A-8. You must attach Form 8283 if over $500 . . .
18 Carryover from prior year . . . . . . . . . . .
19 Add lines 16 through 18 . . . . . . . . . . . . .
12
13
14
. .
.
.
.
.
.
15
4,440
1,850
16
17
18
. .
.
.
.
.
.
.
[20]
.
Casualty and
Theft Losses 20 Casualty or theft loss(es). Attach Form 4684. (See page A-8.) . . . . . . . . .
Job Expenses 21 Unreimbursed employee expenses—job travel, union dues, job
and Certain
education, etc. Attach Form 2106 or 2106-EZ if required. (See
Miscellaneous
21
page A-9.) Deductions
22 Tax preparation fees . . . . . . . . . . . . .
22
(See
page A-9.)
445
19
1,850
20
0
27
0
23 Other expenses—investment, safe deposit box, etc. List type
and amount 24
25
26
27
28
23
24
Add lines 21 through 23 . . . . . . . . . . . .
94,220
25
Enter amount from Form 1040, line 38
26
Multiply line 25 by 2% (.02) . . . . . . . . . . .
Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- .
Other—from list on page A-10. List type and amount 1,884
.
.
.
.
.
28
29 Is Form 1040, line 38, over $166,800 (over $83,400 if married filing separately)?
Total
✔ No.
Itemized
Your deduction is not limited. Add the amounts in the far right column for
lines 4 through 28. Also, enter this amount on Form 1040, line 40a.
Deductions
29
17,590
Yes. Your deduction may be limited. See page A-10 for the amount to enter.
30 If you elect to itemize deductions even though they are less than your standard
deduction, check here . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see Form 1040 instructions.
Cat. No. 17145C
Schedule A (Form 1040) 2009
¶3601
446
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
SCHEDULE B
Department of the Treasury
Internal Revenue Service (99)
OMB No. 1545-0074
Interest and Ordinary Dividends
(Form 1040A or 1040)
Attach
to Form 1040A or 1040.
See
2009
instructions on back.
Attachment
Sequence No. 08
Your social security number
Name(s) shown on return
611-19-5023
John C. Scott and Mabel A. Scott
Part I
Interest
1
Amount
List name of payer. If any interest is from a seller-financed mortgage and the
buyer used the property as a personal residence, see instructions on back and list
this interest first. Also, show that buyer’s social security number and address AB Corp.
CD Corp.
AE Corp.
(See instructions
on back and the
instructions for
Form 1040A, or
Form 1040,
line 8a.)
500 [9]
420 [9]
675 [9]
1
Note. If you
received a Form
1099-INT, Form
1099-OID, or
substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the total interest
shown on that
form.
Part II
Ordinary
Dividends
2
3
Add the amounts on line 1 . . . . . . . . . .
Excludable interest on series EE and I U.S. savings
Attach Form 8815 . . . . . . . . . . . . .
4
Subtract line 3 from line 2. Enter the result here and
1040, line 8a . . . . . . . . . . . . . .
Note. If line 4 is over $1,500, you must complete Part III.
5
List name of payer . . . . . . . .
bonds issued after 1989.
. . . . . . . .
on Form 1040A, or Form
. . . . . . . . Part III
Foreign
Accounts
and Trusts
(See
instructions on
back.)
1,595
4
ABC Corp.
La Vie
2,800 [11]
692 [10]
5
6
Add the amounts on line 5. Enter the total here and on Form 1040A, or Form
3,492
6
1040, line 9a . . . . . . . . . . . . . . . . . . . . . . Note. If line 6 is over $1,500, you must complete Part III.
You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a
Yes No
foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust.
7a
At any time during 2009, did you have an interest in or a signature or other authority over a
financial account in a foreign country, such as a bank account, securities account, or other
financial account? See instructions on back for exceptions and filing requirements for Form TD F
90-22.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b If “Yes,” enter the name of the foreign country 8
During 2009, did you receive a distribution from, or were you the grantor of, or transferor to, a
foreign trust? If “Yes,” you may have to file Form 3520. See instructions on back . . . . . .
For Paperwork Reduction Act Notice, see Form 1040A or 1040 instructions.
¶3601
3
Amount
(See instructions
on back and the
instructions for
Form 1040A, or
Form 1040,
line 9a.)
Note. If you
received a Form
1099-DIV or
substitute
statement from
a brokerage firm,
list the firm’s
name as the
payer and enter
the ordinary
dividends shown
on that form.
1,595
2
Cat. No. 17146N
✔
✔
Schedule B (Form 1040A or 1040) 2009
APPENDIX A: Filled-In Form 1040
SCHEDULE SE
(Form 1040)
447
OMB No. 1545-0074
Self-Employment Tax
Department of the Treasury
Attach to Form 1040.
Internal Revenue Service (99)
Name of person with self-employment income (as shown on Form 1040)
See
2009
Attachment
Sequence No. 17
Instructions for Schedule SE (Form 1040).
Social security number of person
with self-employment income John C. Scott
611-19-5023
Who Must File Schedule SE
You must file Schedule SE if:
● You had net earnings from self-employment from other than church employee income (line 4 of Short Schedule SE or line 4c of
Long Schedule SE) of $400 or more, or
● You had church employee income of $108.28 or more. Income from services you performed as a minister or a member of a
religious order is not church employee income (see page SE-1).
Note. Even if you had a loss or a small amount of income from self-employment, it may be to your benefit to file Schedule SE and use
either “optional method” in Part II of Long Schedule SE (see page SE-4).
Exception. If your only self-employment income was from earnings as a minister, member of a religious order, or Christian Science
practitioner and you filed Form 4361 and received IRS approval not to be taxed on those earnings, do not file Schedule SE. Instead,
write “Exempt—Form 4361” on Form 1040, line 56.
May I Use Short Schedule SE or Must I Use Long Schedule SE?
Note. Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE, above.
Did you receive wages or tips in 2009?
No
Yes
Are you a minister, member of a religious order, or Christian
Science practitioner who received IRS approval not to be taxed
on earnings from these sources, but you owe self-employment
tax on other earnings?
Yes
Was the total of your wages and tips subject to social security
or railroad retirement (tier 1) tax plus your net earnings from
self-employment more than $106,800?
No
Yes
Did you receive tips subject to social security or Medicare tax
that you did not report to your employer?
Yes
No
No
Did you receive church employee income reported on Form
W-2 of $108.28 or more?
No
Are you using one of the optional methods to figure your net
earnings (see page SE-4)?
Yes
Yes
No
Did you report any wages on Form 8919, Uncollected Social
Security and Medicare Tax on Wages?
Yes
No
You may use Short Schedule SE below
You must use Long Schedule SE on page 2
Section A—Short Schedule SE. Caution. Read above to see if you can use Short Schedule SE.
1a
Net farm profit or (loss) from Schedule F, line 36, and farm partnerships, Schedule K-1 (Form
1065), box 14, code A . . . . . . . . . . . . . . . . . . . . . . . .
b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve
Program payments included on Schedule F, line 6b, or listed on Schedule K-1 (Form 1065), box 20, code Y
2
3
4
5
6
Net profit or (loss) from Schedule C, line 31; Schedule C-EZ, line 3; Schedule K-1 (Form 1065),
box 14, code A (other than farming); and Schedule K-1 (Form 1065-B), box 9, code J1.
Ministers and members of religious orders, see page SE-1 for types of income to report on this
line. See page SE-3 for other income to report . . . . . . . . . . . . . . .
Combine lines 1a, 1b, and 2 . . . . . . . . . . . . . . . . . . . . . .
Net earnings from self-employment. Multiply line 3 by 92.35% (.9235). If less than $400, do
not file this schedule; you do not owe self-employment tax . . . . . . . . . . . Self-employment tax. If the amount on line 4 is:
● $106,800 or less, multiply line 4 by 15.3% (.153). Enter the result here and on Form 1040, line 56.
● More than $106,800, multiply line 4 by 2.9% (.029). Then, add $13,243.20 to the result.
Enter the total here and on Form 1040, line 56. . . . . . . . . . . . . . . .
Deduction for one-half of self-employment tax. Multiply line 5
by 50% (.50). Enter the result here and on Form 1040, line 27
212
6
For Paperwork Reduction Act Notice, see Form 1040 instructions.
Cat. No. 11358Z
1a
1b (
)
2
3
3,000 [18]
4
2,771
5
424
3,000
Schedule SE (Form 1040) 2009
¶3601
448
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Profit or Loss From Business
SCHEDULE C
(Form 1040)
OMB No. 1545-0074
(Sole Proprietorship)
Attach
joint ventures, etc., generally must file Form 1065 or 1065-B.
See Instructions for Schedule C (Form 1040).
to Form 1040, 1040NR, or 1041.
Attachment
Sequence No. 09
Social security number (SSN)
611-19-5023
John C. Scott
A
Principal business or profession, including product or service (see page C-2 of the instructions)
B Enter code from pages C-9, 10, & 11
Television repair
C
Business name. If no separate business name, leave blank.
D Employer ID number (EIN), if any
Scott Electronics Shop
E
Business address (including suite or room no.)
8
Part I
1
● You are a member of a qualified joint venture reporting only rental real estate
income not subject to self-employment tax. Also see page C-3 for limit on losses.
2
✔
.
.
Yes
.
.
.
0
No
1
8,000
.
.
.
.
.
.
.
.
.
.
2
3
150
7,850
.
.
.
.
.
.
.
.
.
.
.
.
1,000
6,850
Other income, including federal and state gasoline or fuel tax credit or refund (see page C-4) .
Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
4
5
6
7
6,850
.
.
200
Returns and allowances .
Subtract line 2 from line 1
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
4
5
6
7
Cost of goods sold (from line 42 on page 2)
Gross profit. Subtract line 4 from line 3 .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Part II
1
.
.
2
3
.
.
.
.
.
.
.
.
Expenses. Enter expenses for business use of your home only on line 30.
8
Advertising .
9
10
Car and truck expenses (see
page C-4) . . . . .
Commissions and fees .
9
10
11
12
Contract labor (see page C-4)
Depletion . . . . .
11
12
13
Depreciation and section 179
expense
deduction
(not
included in Part III) (see page
C-5) . . . . . . .
.
.
.
.
8
250
18
Office expense .
.
18
19
20
Pension and profit-sharing plans .
Rent or lease (see page C-6):
Vehicles, machinery, and equipment
19
20a
Other business property . . .
Repairs and maintenance . . .
Supplies (not included in Part III) .
20b
21
22
Taxes and licenses . . . . .
Travel, meals, and entertainment:
Travel . . . . . . . . .
23
24a
25
Deductible meals and
entertainment (see page C-6) .
Utilities . . . . . . .
24b
25
26
Wages (less employment credits) .
26
27
Other expenses (from line 48 on
page 2) . . . . . . . .
27
a
b
21
22
23
24
13
a
b
15
Employee benefit programs
(other than on line 19) . .
Insurance (other than health)
16
a
b
Interest:
Mortgage (paid to banks, etc.)
Other . . . . . .
17
28
Legal and professional
400
17
services . . . . . .
Total expenses before expenses for business use of home. Add lines 8 through 27
29
30
31
Tentative profit or (loss). Subtract line 28 from line 7 . . .
Expenses for business use of your home. Attach Form 8829
Net profit or (loss). Subtract line 30 from line 29.
14
15
500
16a
16b
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
28
.
.
.
.
.
.
.
.
.
.
.
.
29
30
If you have a loss, check the box that describes your investment in this activity (see page C-7).
● If you checked 32a, enter the loss on both Form 1040, line 12, and Schedule SE, line 2, or on
Form 1040NR, line 13 (if you checked the box on line 1, see the line 31 instructions on page C-7).
Estates and trusts, enter on Form 1041, line 3.
● If you checked 32b, you must attach Form 6198. Your loss may be limited.
For Paperwork Reduction Act Notice, see page C-9 of the instructions.
.
.
.
.
● If a profit, enter on both Form 1040, line 12, and Schedule SE, line 2, or on Form 1040NR, line
13 (if you checked the box on line 1, see page C-7). Estates and trusts, enter on Form 1041, line 3.
● If a loss, you must go to line 32.
32
1
Income
Gross receipts or sales. Caution. See page C-4 and check the box if:
● This income was reported to you on Form W-2 and the “Statutory employee” box
on that form was checked, or
14
1
1000 Park Avenue
Pittsburgh, PA 15218
City, town or post office, state, and ZIP code
(2) ✔ Accrual
(3)
(1)
Cash
Other (specify) Accounting method:
Did you “materially participate” in the operation of this business during 2009? If “No,” see page C-3 for limit on losses
If you started or acquired this business during 2009, check here . . . . . . . . . . . . . . . . .
F
G
H
¶3601
2009
Partnerships,
Department of the Treasury
Internal Revenue Service (99)
Name of proprietor
Cat. No. 11334P
31
32a
32b
2,000
100
400
3,850
3,000
All investment is at risk.
Some investment is not
at risk.
Schedule C (Form 1040) 2009
APPENDIX A: Filled-In Form 1040
Page 2
Schedule C (Form 1040) 2009
Part III
Cost of Goods Sold (see page C-8)
Method(s) used to
value closing inventory:
33
34
✔
a
b
Cost
c
Lower of cost or market
Other (attach explanation)
Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . .
Yes
.
✔
35
Inventory at beginning of year. If different from last year’s closing inventory, attach explanation .
.
.
35
2,000
36
Purchases less cost of items withdrawn for personal use
.
.
.
.
.
.
.
.
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36
500
37
Cost of labor. Do not include any amounts paid to yourself .
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37
38
Materials and supplies
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38
39
Other costs .
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39
40
Add lines 35 through 39 .
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40
2,500
41
Inventory at end of year .
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41
1,500
42
Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on page 1, line 4
.
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.
42
1,000
Part IV
.
.
.
No
Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9
and are not required to file Form 4562 for this business. See the instructions for line 13 on page C-5 to find
out if you must file Form 4562.
/
/
43
When did you place your vehicle in service for business purposes? (month, day, year)
44
Of the total number of miles you drove your vehicle during 2009, enter the number of miles you used your vehicle for:
a
b Commuting (see instructions)
Business
c Other
45
Was your vehicle available for personal use during off-duty hours?
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Yes
No
46
Do you (or your spouse) have another vehicle available for personal use?.
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Yes
No
47a
Do you have evidence to support your deduction?
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Yes
No
If “Yes,” is the evidence written?
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Yes
No
b
Part V
48
449
.
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.
Other Expenses. List below business expenses not included on lines 8–26 or line 30.
Total other expenses. Enter here and on page 1, line 27 .
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48
Schedule C (Form 1040) 2009
¶3601
450
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Capital Gains and Losses
SCHEDULE D
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
Name(s) shown on return
Attach
See
to Form 1040 or Form 1040NR.
Use
OMB No. 1545-0074
Instructions for Schedule D (Form 1040).
John C. Scott and Mabel A. Scott
Part I
611-19-5023
Short-Term Capital Gains and Losses—Assets Held One Year or Less
(a) Description of property
(Example: 100 sh. XYZ Co.)
1 ZZ Common Stock
Non-Business Bad Debt
(b) Date acquired
(Mo., day, yr.)
(c) Date sold
(Mo., day, yr.)
7-2-09
12-31-09
12-8-94
9-1-09
2 Enter your short-term totals, if any, from Schedule D-1,
line 2 . . . . . . . . . . . . . . . . . .
3 Total short-term sales price amounts. Add lines 1 and 2 in
column (d) . . . . . . . . . . . . . . . .
(d) Sales price
(see page D-7 of
the instructions)
(e) Cost or other basis
(see page D-7 of
the instructions)
worthless
(500) [15]
1,000
(1,000) [18]
2
3
4
7 Net short-term capital gain or (loss). Combine lines 1 through 6 in column (f) .
7
.
.
.
.
5
6
(
20,000 [19] )
(21,500)
Long-Term Capital Gains and Losses—Assets Held More Than One Year
(a) Description of property
(Example: 100 sh. XYZ Co.)
8 FF Common Stock
HH Preferred Stock
GG Common Stock
(b) Date acquired
(Mo., day, yr.)
(c) Date sold
(Mo., day, yr.)
2-5-87
6-12-09
3-1-03
3-15-09
10-11-86
8-31-09
(d) Sales price
(see page D-7 of
the instructions)
(e) Cost or other basis
(see page D-7 of
the instructions)
4,090
26,910 [15]
25,000
4,050
20,950 [15]
1,100
840
13 Capital gain distributions. See page D-2 of the instructions . . . . . . . . . . . .
14 Long-term capital loss carryover. Enter the amount, if any, from line 15 of your Capital Loss
Carryover Worksheet on page D-7 of the instructions . . . . . . . . . . . . .
15 Net long-term capital gain or (loss). Combine lines 8 through 14 in column (f). Then go to Part
III on the back . . . . . . . . . . . . . . . . . . . . . . . . . . .
For Paperwork Reduction Act Notice, see Form 1040 or Form 1040NR instructions.
(f) Gain or (loss)
Subtract (e) from (d)
31,000
9 Enter your long-term totals, if any, from Schedule D-1,
9
line 9 . . . . . . . . . . . . . . . . . .
10 Total long-term sales price amounts. Add lines 8 and 9 in
57,100
10
column (d) . . . . . . . . . . . . . . . .
11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or
(loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . .
12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . .
¶3601
(f) Gain or (loss)
Subtract (e) from (d)
500
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824
5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from
Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Short-term capital loss carryover. Enter the amount, if any, from line 10 of your Capital Loss
Carryover Worksheet on page D-7 of the instructions . . . . . . . . . . . . .
Part II
2009
Attachment
Sequence No. 12
Your social security number
Schedule D-1 to list additional transactions for lines 1 and 8.
Cat. No. 11338H
260 [15-17]
11
12
1,000 [11]
13
14 (
15
)
49,120
Schedule D (Form 1040) 2009
APPENDIX A: Filled-In Form 1040
Page 2
Schedule D (Form 1040) 2009
Part III
451
Summary
16 Combine lines 7 and 15 and enter the result .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
27,620
16
If line 16 is:
● A gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line 14. Then
go to line 17 below.
● A loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22.
● Zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form 1040NR,
line 14. Then go to line 22.
17 Are lines 15 and 16 both gains?
✔
Yes. Go to line 18.
No. Skip lines 18 through 21, and go to line 22.
18 Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet on page D-8 of the
instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet on
page D-9 of the instructions . . . . . . . . . . . . . . . . . . . . . . 19
20 Are lines 18 and 19 both zero or blank?
✔
Yes. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete
the Qualified Dividends and Capital Gain Tax Worksheet on page 39 of the Instructions
for Form 1040 (or in the Instructions for Form 1040NR). Do not complete lines 21 and 22
below.
No. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete
the Schedule D Tax Worksheet on page D-10 of the instructions. Do not complete lines 21
and 22 below.
21 If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller
of:
● The loss on line 16 or
● ($3,000), or if married filing separately, ($1,500)
.
.
.
.
.
.
.
.
.
.
.
.
.
21 (
)
Note. When figuring which amount is smaller, treat both amounts as positive numbers.
22 Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b?
✔
Yes. Complete Form 1040 through line 43, or Form 1040NR through line 40. Then complete
the Qualified Dividends and Capital Gain Tax Worksheet on page 39 of the Instructions
for Form 1040 (or in the Instructions for Form 1040NR).
No. Complete the rest of Form 1040 or Form 1040NR.
Schedule D (Form 1040) 2009
¶3601
452
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Form
Employee Business Expenses
2106
See
Department of the Treasury
Internal Revenue Service (99)
Your name
Attach
2009
separate instructions.
Attachment
Sequence No.
Social security number
to Form 1040 or Form 1040NR.
Occupation in which you incurred expenses
Mabel A. Scott
Part I
OMB No. 1545-0074
Controller
129
658-01-6253
Employee Business Expenses and Reimbursements
Column A
Other Than Meals
and Entertainment
Step 1 Enter Your Expenses
1 Vehicle expense from line 22 or line 29. (Rural mail carriers: See
instructions.) . . . . . . . . . . . . . . . . . .
2 Parking fees, tolls, and transportation, including train, bus, etc., that
did not involve overnight travel or commuting to and from work .
Travel
expense while away from home overnight, including lodging,
3
airplane, car rental, etc. Do not include meals and entertainment .
4 Business expenses not included on lines 1 through 3. Do not
include meals and entertainment . . . . . . . . . . . .
5 Meals and entertainment expenses (see instructions) . . . . .
6 Total expenses. In Column A, add lines 1 through 4 and enter the
result. In Column B, enter the amount from line 5 . . . . . .
Column B
Meals and
Entertainment
1
2
3
1,500 [5]
4
750 [5]
5
6
1,500
750
Note: If you were not reimbursed for any expenses in Step 1, skip line 7 and enter the amount from line 6 on line 8.
Step 2 Enter Reimbursements Received From Your Employer for Expenses Listed in Step 1
7 Enter reimbursements
reported to you in box
reported under code
instructions) . . . .
received from your employer that were not
1 of Form W-2. Include any reimbursements
“L” in box 12 of your Form W-2 (see
. . . . . . . . . . . . . . .
7
2,250
750 [5]
Step 3 Figure Expenses To Deduct on Schedule A (Form 1040 or Form 1040NR)
8 Subtract line 7 from line 6. If zero or less, enter -0-. However, if line
7 is greater than line 6 in Column A, report the excess as income
on Form 1040, line 7 (or on Form 1040NR, line 8) . . . . . .
8
0
0
Note: If both columns of line 8 are zero, you cannot deduct
employee business expenses. Stop here and attach Form 2106 to
your return.
9 In Column A, enter the amount from line 8. In Column B, multiply
line 8 by 50% (.50). (Employees subject to Department of
Transportation (DOT) hours of service limits: Multiply meal expenses
incurred while away from home on business by 80% (.80) instead of
50%. For details, see instructions.) . . . . . . . . . . .
0
9
10 Add the amounts on line 9 of both columns and enter the total here. Also, enter the total on
Schedule A (Form 1040), line 21 (or on Schedule A (Form 1040NR), line 9). (Armed Forces
reservists, qualified performing artists, fee-basis state or local government officials, and
individuals with disabilities: See the instructions for special rules on where to enter the total.) For Paperwork Reduction Act Notice, see instructions.
¶3601
Cat. No. 11700N
0
0
10
Form
2106
(2009)
APPENDIX A: Filled-In Form 1040
Form
3903
OMB No. 1545-0074
Moving Expenses
Department of the Treasury
Internal Revenue Service (99)
2009
Attachment
Sequence No. 62
Attach to Form 1040 or Form 1040NR.
Your social security number
Name(s) shown on return
John C. Scott and Mabel A. Scott
Before you begin:
611-19-5023
✓ See the Distance Test and Time Test in the instructions to find out if you can deduct your moving
expenses.
✓ See Members of the Armed Forces on the back, if applicable.
Transportation and storage of household goods and personal effects (see instructions) . . .
Travel (including lodging) from your old home to your new home (see instructions). Do not
include the cost of meals . . . . . . . . . . . . . . . . . . . . . . . .
1
1,025 [7]
2
1,025
3
Add lines 1 and 2
3
4
Enter the total amount your employer paid you for the expenses listed on lines 1 and 2 that is
not included in box 1 of your Form W-2 (wages). This amount should be shown in box 12 of your
Form W-2 with code P . . . . . . . . . . . . . . . . . . . . . . . .
1
2
5
453
.
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.
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.
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.
.
4
0
5
1,025 [7]
Is line 3 more than line 4?
No.
✔
You cannot deduct your moving expenses. If line 3 is less than line 4, subtract line 3
from line 4 and include the result on Form 1040, line 7, or Form 1040NR, line 8.
Yes. Subtract line 4 from line 3. Enter the result here and on Form 1040, line 26, or Form
1040NR, line 26. This is your moving expense deduction . . . . . . . . .
General Instructions
What’s New
For 2009, the standard mileage rate for
using your vehicle to move to a new home
is 24 cents a mile.
Purpose of Form
Use Form 3903 to figure your moving
expense deduction for a move related to
the start of work at a new principal place
of work (workplace). If the new workplace
is outside the United States or its
possessions, you must be a U.S. citizen or
resident alien to deduct your expenses.
If you qualify to deduct expenses for
more than one move, use a separate Form
3903 for each move.
For more details, see Pub. 521, Moving
Expenses.
Members of the Armed Forces
may not have to meet the
distance and time tests. See
instructions on the back.
Moving Expenses You Can
Deduct
You can deduct the reasonable expenses
of moving your household goods and
personal effects and of traveling from your
old home to your new home. Reasonable
expenses can include the cost of lodging
(but not meals) while traveling to your new
home. You cannot deduct the cost of
sightseeing trips.
Distance Test
Your new principal workplace must be at
least 50 miles farther from your old home
than your old workplace was. For example,
if your old workplace was 3 miles from your
old home, your new workplace must be at
least 53 miles from that home. If you did
not have an old workplace, your new
workplace must be at least 50 miles from
your old home. The distance between the
two points is the shortest of the more
commonly traveled routes between them.
To see if you meet the
distance test, you can
use the worksheet
below.
Who Can Deduct Moving
Expenses
If you move to a new home because of a
new principal workplace, you may be able
to deduct your moving expenses whether
you are self-employed or an employee. But
you must meet both the distance and time
tests that follow.
Distance Test Worksheet
Keep a Copy for Your Records
1. Number of miles from your old home to your new workplace
.
.
.
.
.
.
.
.
.
.
.
1. 852
miles
2. Number of miles from your old home to your old workplace .
.
.
.
.
.
.
.
.
.
.
.
2. 10
miles
3. Subtract line 2 from line 1. If zero or less, enter -0-
.
.
.
.
.
.
.
.
.
.
.
3. 842
miles
.
.
.
.
Is line 3 at least 50 miles?
✔
Yes. You meet this test.
No. You do not meet this test. You cannot deduct your moving expenses. Do not complete Form 3903.
For Paperwork Reduction Act Notice, see back of form.
Cat. No. 12490K
Form
3903
(2009)
¶3601
454
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
SCHEDULE M
(Form 1040A or 1040)
Department of the Treasury
(99)
Internal Revenue Service
OMB No. 1545-0074
Making Work Pay and Government
Retiree Credits
Attach to Form 1040A, 1040, or 1040NR.
2009
Attachment
Sequence No.
See separate instructions.
Name(s) shown on return
166
Your social security number
John C. Scott and Mabel A. Scott
611
19
5023
1a Important: See the instructions if you can be claimed as someone else’s dependent or are filing Form 1040NR.
Check the “No” box below and see the instructions if (a) you have a net loss from a business, (b) you received
a taxable scholarship or fellowship grant not reported on a Form W-2, (c) your wages include pay for work
performed while an inmate in a penal institution, (d) you received a pension or annuity from a nonqualified
deferred compensation plan or a nongovernmental section 457 plan, or (e) you are filing Form 2555 or 2555-EZ.
Do you (and your spouse if filing jointly) have 2009 wages of more than $6,451 ($12,903 if married filing jointly)?
✔ Yes. Skip lines 1a through 3. Enter $400 ($800 if married filing jointly) on line 4 and go to line 5.
1a
No. Enter your earned income (see instructions)
b Nontaxable combat pay included on
line 1a (see instructions)
2 Multiply line 1a by 6.2% (.062)
1b
2
3
3
Enter $400 ($800 if married filing jointly)
4
Enter the smaller of line 2 or line 3 (unless you checked “Yes” on line 1a)
5
Enter the amount from Form 1040, line 38*, or Form 1040A, line 22
5
94,220
6
Enter $75,000 ($150,000 if married filing jointly)
6
150,000
7
Is the amount on line 5 more than the amount on line 6?
✔ No. Skip line 8. Enter the amount from line 4 on line 9 below.
Yes. Subtract line 6 from line 5
7
4
8
Multiply line 7 by 2% (.02)
8
9
Subtract line 8 from line 4. If zero or less, enter -0-
9
10
12
13
14
800
Did you (or your spouse, if filing jointly) receive an economic recovery payment in 2009? You
may have received this payment if you received social security benefits, supplemental security
income, railroad retirement benefits, or veterans disability compensation or pension benefits (see
instructions).
✔ No. Enter -0- on line 10 and go to line 11.
Yes. Enter the total of the payments received by you (and your spouse, if filing
jointly). Do not enter more than $250 ($500 if married filing jointly)
11
800
10
Did you (or your spouse, if filing jointly) receive a pension or annuity in 2009 for services performed
as an employee of the U.S. Government or any U.S. state or local government from work not
covered by social security? Do not include any pension or annuity reported on Form W-2.
✔ No. Enter -0- on line 11 and go to line 12.
Yes. ● If you checked “No” on line 10, enter $250 ($500 if married filing jointly
and the answer on line 11 is “Yes” for both spouses)
● If you checked “Yes” on line 10, enter -0- (exception: enter $250 if filing
jointly and the spouse who received the pension or annuity did not receive
an economic recovery payment described on line 10)
Add lines 10 and 11
Subtract line 12 from line 9. If zero or less, enter -0-
Making work pay and government retiree credits. Add lines 11 and 13. Enter the result here
and on Form 1040, line 63; Form 1040A, line 40; or Form 1040NR, line 60
11
0
12
13
0
800
14
800
*If you are filing Form 2555, 2555-EZ, or 4563 or you are excluding income from Puerto Rico, see instructions.
For Paperwork Reduction Act Notice, see Form 1040A, 1040, or
1040NR instructions.
¶3601
Cat. No. 52903Q
Schedule M (Form 1040A or 1040) 2009
APPENDIX A: Filled-In Form 1040
455
Form 1040 — Line 44
Qualified Dividends and Capital Gain Tax Worksheet—Line 44
Before you begin:
⻫
⻫
Keep for Your Records
See the instructions for line 44 that begin on page 37 to see if you can use this worksheet to
figure your tax.
If you do not have to file Schedule D and you received capital gain distributions, be sure
you checked the box on line 13 of Form 1040.
1. Enter the amount from Form 1040, line 43. However, if you are filing Form
2555 or 2555-EZ (relating to foreign earned income), enter the amount from
58,380
line 3 of the worksheet on page 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2,800
2. Enter the amount from Form 1040, line 9b* . . . . . . . . .
2.
3. Are you filing Schedule D?*
✔ Yes. Enter the smaller of line 15 or 16 of
Schedule D. If either line 15 or line 16 is a
27,620
3.
loss, enter -0No. Enter the amount from Form 1040, line 13
30,420
4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. If you are claiming investment interest expense on Form
4952, enter the amount from line 4g of that form.
Otherwise, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
30,420
6. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . 6.
27,960
7. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . 7.
8. Enter the smaller of:
• The amount on line 1, or
58,380
• $33,950 if single or married filing separately,
. . . . . . . . . . . 8.
$67,900 if married filing jointly or qualifying widow(er),
$45,500 if head of household.
9. Is the amount on line 7 equal to or more than the amount on line 8?
Yes. Skip lines 9 and 10; go to line 11 and check the ‘‘No’’ box.
27,960
✔ No. Enter the amount from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
30,420
10. Subtract line 9 from line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Are the amounts on lines 6 and 10 the same?
✔ Yes. Skip lines 11 through 14; go to line 15.
No. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the amount from line 10 (if line 10 is blank, enter -0-) . . . . . . . . . . . . . . 12.
13. Subtract line 12 from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. Multiply line 13 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Figure the tax on the amount on line 7. Use the Tax Table or Tax Computation Worksheet,
whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
16. Add lines 14 and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
17. Figure the tax on the amount on line 1. Use the Tax Table or Tax Computation Worksheet,
whichever applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
18. Tax on all taxable income. Enter the smaller of line 16 or line 17. Also include this amount on
Form 1040, line 44. If you are filing Form 2555 or 2555-EZ, do not enter this amount on Form
1040, line 44. Instead, enter it on line 4 of the worksheet on page 38 . . . . . . . . . . . . . . . . . . . . . . 18.
}
}
3,361
3,361
7,921
3,361
*If you are filing Form 2555 or 2555-EZ, see the footnote in the worksheet on page 38 before completing this line.
¶3601
456
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
¶3601
1040 PREPARATION AND PLANNING GUIDE
Appendix B:
Tax Table and Rate Schedules
¶3701 Tax Rate Schedules for 2009
CAUTION: Taxpayers must use the Tax Table beginning on the following page instead of these Tax Rate
Schedules if their taxable income (line 43, Form 1040)
is less than $100,000. See also ¶1003.
Schedule X — Single
If taxable income is over:
But not over:
$0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$8,350. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$33,950. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$82,250. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$171,550. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$372,950. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The tax is:
$8,350 . . . . . . . . . . . . . . . . . . .
$33,950 . . . . . . . . . . . . . . . . . . .
$82,250 . . . . . . . . . . . . . . . . . . .
$171,550 . . . . . . . . . . . . . . . . . . .
$372,950 . . . . . . . . . . . . . . . . . . .
no limit . . . . . . . . . . . . . . . . . . .
10% of the amount over $0
$835 plus 15% of the amount over $8,350
$4,675 plus 25% of the amount over $33,950
$16,750 plus 28% of the amount over $82,250
$41,754 plus 33% of the amount over $171,550
$108,216 plus 35% of the amount over $372,950
Schedule Y-1 — Married Filing Jointly or Qualifying Widow(er)
If taxable income is over:
$0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$16,700. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$67,900. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$137,050. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$208,850. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$372,950. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
But not over:
The tax is:
$16,700 . . . . . . . . . . . . . . . . . . .
$67,900 . . . . . . . . . . . . . . . . . . .
$137,050 . . . . . . . . . . . . . . . . . . .
$208,850 . . . . . . . . . . . . . . . . . . .
$372,950 . . . . . . . . . . . . . . . . . . .
no limit . . . . . . . . . . . . . . . . . . .
10% of the amount over $0
$1,670 plus 15% of the amount over $16,700
$9,350 plus 25% of the amount over $67,900
$26,637.50 plus 28% of the amount over $137,050
$46,741.50 plus 33% of the amount over $208,850
$100,894.50 plus 35% of the amount over $372,950
Schedule Y-2 — Married Filing Separately
If taxable income is over:
$0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$8,350. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$33,950. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$68,525. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$104,425. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$186,475. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
But not over:
The tax is:
$8,350 . . . . . . . . . . . . . . . . . . .
$33,950 . . . . . . . . . . . . . . . . . . .
$68,525 . . . . . . . . . . . . . . . . . . .
$104,425 . . . . . . . . . . . . . . . . . . .
$186,475 . . . . . . . . . . . . . . . . . . .
no limit . . . . . . . . . . . . . . . . . . .
10% of the amount over $0
$835 plus 15% of the amount over $8,350
$4,675 plus 25% of the amount over $33,950
$13,318.75 plus 28% of the amount over $68,525
$23,370.75 plus 33% of the amount over $104,425
$50,447.25 plus 35% of the amount over $186,475
Schedule Z — Head of Household
If taxable income is over:
$0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11,950. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$45,500. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$117,450. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$190,200. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$372,950. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
But not over:
$11,950
$45,500
$117,450
$190,200
$372,950
no limit
The tax is:
..................
..................
..................
..................
..................
..................
10% of the amount over $0
$1,195 plus 15% of the amount over $11,950
$6,227.50 plus 25% of the amount over $45,500
$24,215 plus 28% of the amount over $117,450
$44,585 plus 33% of the amount over $190,200
$104,892.50 plus 35% of the amount over $372,950
¶3701
458
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
How to Use Tax Table. Simply find taxable income (line
2009 Tax Table
43, Form 1040). Next, find the filing status column.
The amount shown where the income line and the filing status column meet is the tax. Enter this on line 44
of Form 1040.
CAUTION: Generally, filers with taxable incomes of less
than $100,000 must use the Tax Table. See ¶1002.
2009
Tax Table
If line 43
(taxable
income) is —
At
least
But
less
than
0
5
15
25
50
75
100
125
150
175
200
225
250
275
300
325
350
375
400
425
450
475
500
525
550
575
600
625
650
675
700
725
750
775
800
825
850
875
900
925
950
975
!
CAUTION
Example. Mr. and Mrs. Brown are filing a joint return. Their
taxable income on Form 1040, line 43, is $25,300. First, they
find the $25,300 – 25,350 taxable income line. Next, they find
the column for married filing jointly and read down the column.
The amount shown where the taxable income line and filing
status column meet is $2,964. This is the tax amount they
should enter on Form 1040, line 44.
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
5
15
25
50
75
100
125
150
175
200
225
250
275
300
325
350
375
400
425
450
475
500
525
550
575
600
625
650
675
700
725
750
775
800
825
850
875
900
925
950
975
1,000
0
1
2
4
6
9
11
14
16
19
21
24
26
29
31
34
36
39
41
44
46
49
51
54
56
59
61
64
66
69
71
74
76
79
81
84
86
89
91
94
96
99
0
1
2
4
6
9
11
14
16
19
21
24
26
29
31
34
36
39
41
44
46
49
51
54
56
59
61
64
66
69
71
74
76
79
81
84
86
89
91
94
96
99
0
1
2
4
6
9
11
14
16
19
21
24
26
29
31
34
36
39
41
44
46
49
51
54
56
59
61
64
66
69
71
74
76
79
81
84
86
89
91
94
96
99
0
1
2
4
6
9
11
14
16
19
21
24
26
29
31
34
36
39
41
44
46
49
51
54
56
59
61
64
66
69
71
74
76
79
81
84
86
89
91
94
96
99
1,025
1,050
1,075
1,100
1,125
1,150
1,175
1,200
1,225
1,250
1,275
1,300
101
104
106
109
111
114
116
119
121
124
126
129
101
104
106
109
111
114
116
119
121
124
126
129
101
104
106
109
111
114
116
119
121
124
126
129
101
104
106
109
111
114
116
119
121
124
126
129
1,000
1,000
1,025
1,050
1,075
1,100
1,125
1,150
1,175
1,200
1,225
1,250
1,275
¶3701
See the instructions for line 44 that begin on
page 37 to see if you must use the Tax Table
below to figure your tax.
At
least
But
less
than
1,300
1,325
1,350
1,375
1,400
1,425
1,450
1,475
1,500
1,525
1,550
1,575
1,600
1,625
1,650
1,675
1,700
1,725
1,750
1,775
1,800
1,825
1,850
1,875
1,900
1,925
1,950
1,975
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
1,325
1,350
1,375
1,400
1,425
1,450
1,475
1,500
1,525
1,550
1,575
1,600
1,625
1,650
1,675
1,700
1,725
1,750
1,775
1,800
1,825
1,850
1,875
1,900
1,925
1,950
1,975
2,000
131
134
136
139
141
144
146
149
151
154
156
159
161
164
166
169
171
174
176
179
181
184
186
189
191
194
196
199
131
134
136
139
141
144
146
149
151
154
156
159
161
164
166
169
171
174
176
179
181
184
186
189
191
194
196
199
131
134
136
139
141
144
146
149
151
154
156
159
161
164
166
169
171
174
176
179
181
184
186
189
191
194
196
199
131
134
136
139
141
144
146
149
151
154
156
159
161
164
166
169
171
174
176
179
181
184
186
189
191
194
196
199
2,025
2,050
2,075
2,100
2,125
2,150
2,175
2,200
2,225
2,250
2,275
2,300
2,325
2,350
2,375
2,400
2,425
2,450
2,475
2,500
2,525
2,550
2,575
2,600
2,625
2,650
2,675
2,700
201
204
206
209
211
214
216
219
221
224
226
229
231
234
236
239
241
244
246
249
251
254
256
259
261
264
266
269
201
204
206
209
211
214
216
219
221
224
226
229
231
234
236
239
241
244
246
249
251
254
256
259
261
264
266
269
201
204
206
209
211
214
216
219
221
224
226
229
231
234
236
239
241
244
246
249
251
254
256
259
261
264
266
269
201
204
206
209
211
214
216
219
221
224
226
229
231
234
236
239
241
244
246
249
251
254
256
259
261
264
266
269
2,000
2,000
2,025
2,050
2,075
2,100
2,125
2,150
2,175
2,200
2,225
2,250
2,275
2,300
2,325
2,350
2,375
2,400
2,425
2,450
2,475
2,500
2,525
2,550
2,575
2,600
2,625
2,650
2,675
At
least
But
less
than
25,200
25,250
25,300
25,350
25,250
25,300
25,350
25,400
At
least
But
less
than
2,700
2,725
2,750
2,775
2,800
2,825
2,850
2,875
2,900
2,925
2,950
2,975
Married
filing
separately
Head
of a
household
Your tax is—
2,949 3,366
2,956 3,374
2,964 3,381
2,971 3,389
3,186
3,194
3,201
3,209
Single Married
filing
jointly
*
3,366
3,374
3,381
3,389
If line 43
(taxable
income) is —
And you are —
Single
Sample Table
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
2,725
2,750
2,775
2,800
2,825
2,850
2,875
2,900
2,925
2,950
2,975
3,000
271
274
276
279
281
284
286
289
291
294
296
299
271
274
276
279
281
284
286
289
291
294
296
299
271
274
276
279
281
284
286
289
291
294
296
299
271
274
276
279
281
284
286
289
291
294
296
299
3,050
3,100
3,150
3,200
3,250
3,300
3,350
3,400
3,450
3,500
3,550
3,600
3,650
3,700
3,750
3,800
3,850
3,900
3,950
4,000
303
308
313
318
323
328
333
338
343
348
353
358
363
368
373
378
383
388
393
398
303
308
313
318
323
328
333
338
343
348
353
358
363
368
373
378
383
388
393
398
303
308
313
318
323
328
333
338
343
348
353
358
363
368
373
378
383
388
393
398
303
308
313
318
323
328
333
338
343
348
353
358
363
368
373
378
383
388
393
398
4,050
4,100
4,150
4,200
4,250
4,300
4,350
4,400
4,450
4,500
4,550
4,600
4,650
4,700
4,750
4,800
4,850
4,900
4,950
5,000
403
408
413
418
423
428
433
438
443
448
453
458
463
468
473
478
483
488
493
498
403
408
413
418
423
428
433
438
443
448
453
458
463
468
473
478
483
488
493
498
403
408
413
418
423
428
433
438
443
448
453
458
463
468
473
478
483
488
493
498
403
408
413
418
423
428
433
438
443
448
453
458
463
468
473
478
483
488
493
498
3,000
3,000
3,050
3,100
3,150
3,200
3,250
3,300
3,350
3,400
3,450
3,500
3,550
3,600
3,650
3,700
3,750
3,800
3,850
3,900
3,950
4,000
4,000
4,050
4,100
4,150
4,200
4,250
4,300
4,350
4,400
4,450
4,500
4,550
4,600
4,650
4,700
4,750
4,800
4,850
4,900
4,950
A P P E N D I X B — Ta x Ta b l e a n d R a t e S c h e d u l e s
459
2009 Tax Table – Continued
If line 43
(taxable
income) is —
At
least
But
less
than
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
5,000
5,000
5,050
5,100
5,150
5,200
5,250
5,300
5,350
5,400
5,450
5,500
5,550
5,600
5,650
5,700
5,750
5,800
5,850
5,900
5,950
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
8,000
At
least
503
508
513
518
523
528
533
538
543
548
553
558
563
568
573
578
583
588
593
598
503
508
513
518
523
528
533
538
543
548
553
558
563
568
573
578
583
588
593
598
503
508
513
518
523
528
533
538
543
548
553
558
563
568
573
578
583
588
593
598
8,000
8,050
8,100
8,150
8,200
8,250
8,300
8,350
8,400
8,450
8,500
8,550
8,600
8,650
8,700
8,750
8,800
8,850
8,900
8,950
8,050
8,100
8,150
8,200
8,250
8,300
8,350
8,400
8,450
8,500
8,550
8,600
8,650
8,700
8,750
8,800
8,850
8,900
8,950
9,000
803
808
813
818
823
828
833
839
846
854
861
869
876
884
891
899
906
914
921
929
803
808
813
818
823
828
833
838
843
848
853
858
863
868
873
878
883
888
893
898
803
808
813
818
823
828
833
839
846
854
861
869
876
884
891
899
906
914
921
929
803
808
813
818
823
828
833
838
843
848
853
858
863
868
873
878
883
888
893
898
11,000
11,050
11,100
11,150
11,200
11,250
11,300
11,350
11,400
11,450
11,500
11,550
11,600
11,650
11,700
11,750
11,800
11,850
11,900
11,950
6,050
6,100
6,150
6,200
6,250
6,300
6,350
6,400
6,450
6,500
6,550
6,600
6,650
6,700
6,750
6,800
6,850
6,900
6,950
7,000
603
608
613
618
623
628
633
638
643
648
653
658
663
668
673
678
683
688
693
698
603
608
613
618
623
628
633
638
643
648
653
658
663
668
673
678
683
688
693
698
603
608
613
618
623
628
633
638
643
648
653
658
663
668
673
678
683
688
693
698
603
608
613
618
623
628
633
638
643
648
653
658
663
668
673
678
683
688
693
698
9,000 9,050
9,050 9,100
9,100 9,150
9,150 9,200
9,200 9,250
9,250 9,300
9,300 9,350
9,350 9,400
9,400 9,450
9,450 9,500
9,500 9,550
9,550 9,600
9,600 9,650
9,650 9,700
9,700 9,750
9,750 9,800
9,800 9,850
9,850 9,900
9,900 9,950
9,950 10,000
936
944
951
959
966
974
981
989
996
1,004
1,011
1,019
1,026
1,034
1,041
1,049
1,056
1,064
1,071
1,079
903
908
913
918
923
928
933
938
943
948
953
958
963
968
973
978
983
988
993
998
936
944
951
959
966
974
981
989
996
1,004
1,011
1,019
1,026
1,034
1,041
1,049
1,056
1,064
1,071
1,079
903
908
913
918
923
928
933
938
943
948
953
958
963
968
973
978
983
988
993
998
12,000
12,050
12,100
12,150
12,200
12,250
12,300
12,350
12,400
12,450
12,500
12,550
12,600
12,650
12,700
12,750
12,800
12,850
12,900
12,950
7,050
7,100
7,150
7,200
7,250
7,300
7,350
7,400
7,450
7,500
7,550
7,600
7,650
7,700
7,750
7,800
7,850
7,900
7,950
8,000
703
708
713
718
723
728
733
738
743
748
753
758
763
768
773
778
783
788
793
798
703
708
713
718
723
728
733
738
743
748
753
758
763
768
773
778
783
788
793
798
703
708
713
718
723
728
733
738
743
748
753
758
763
768
773
778
783
788
793
798
703
708
713
718
723
728
733
738
743
748
753
758
763
768
773
778
783
788
793
798
1,086
1,094
1,101
1,109
1,116
1,124
1,131
1,139
1,146
1,154
1,161
1,169
1,176
1,184
1,191
1,199
1,206
1,214
1,221
1,229
1,003
1,008
1,013
1,018
1,023
1,028
1,033
1,038
1,043
1,048
1,053
1,058
1,063
1,068
1,073
1,078
1,083
1,088
1,093
1,098
1,086
1,094
1,101
1,109
1,116
1,124
1,131
1,139
1,146
1,154
1,161
1,169
1,176
1,184
1,191
1,199
1,206
1,214
1,221
1,229
1,003
1,008
1,013
1,018
1,023
1,028
1,033
1,038
1,043
1,048
1,053
1,058
1,063
1,068
1,073
1,078
1,083
1,088
1,093
1,098
13,000
13,050
13,100
13,150
13,200
13,250
13,300
13,350
13,400
13,450
13,500
13,550
13,600
13,650
13,700
13,750
13,800
13,850
13,900
13,950
9,000
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
10,050
10,100
10,150
10,200
10,250
10,300
10,350
10,400
10,450
10,500
10,550
10,600
10,650
10,700
10,750
10,800
10,850
10,900
10,950
11,000
11,050
11,100
11,150
11,200
11,250
11,300
11,350
11,400
11,450
11,500
11,550
11,600
11,650
11,700
11,750
11,800
11,850
11,900
11,950
12,000
1,236
1,244
1,251
1,259
1,266
1,274
1,281
1,289
1,296
1,304
1,311
1,319
1,326
1,334
1,341
1,349
1,356
1,364
1,371
1,379
1,103
1,108
1,113
1,118
1,123
1,128
1,133
1,138
1,143
1,148
1,153
1,158
1,163
1,168
1,173
1,178
1,183
1,188
1,193
1,198
1,236
1,244
1,251
1,259
1,266
1,274
1,281
1,289
1,296
1,304
1,311
1,319
1,326
1,334
1,341
1,349
1,356
1,364
1,371
1,379
1,103
1,108
1,113
1,118
1,123
1,128
1,133
1,138
1,143
1,148
1,153
1,158
1,163
1,168
1,173
1,178
1,183
1,188
1,193
1,199
1,386
1,394
1,401
1,409
1,416
1,424
1,431
1,439
1,446
1,454
1,461
1,469
1,476
1,484
1,491
1,499
1,506
1,514
1,521
1,529
1,203
1,208
1,213
1,218
1,223
1,228
1,233
1,238
1,243
1,248
1,253
1,258
1,263
1,268
1,273
1,278
1,283
1,288
1,293
1,298
1,386
1,394
1,401
1,409
1,416
1,424
1,431
1,439
1,446
1,454
1,461
1,469
1,476
1,484
1,491
1,499
1,506
1,514
1,521
1,529
1,206
1,214
1,221
1,229
1,236
1,244
1,251
1,259
1,266
1,274
1,281
1,289
1,296
1,304
1,311
1,319
1,326
1,334
1,341
1,349
1,536
1,544
1,551
1,559
1,566
1,574
1,581
1,589
1,596
1,604
1,611
1,619
1,626
1,634
1,641
1,649
1,656
1,664
1,671
1,679
1,303
1,308
1,313
1,318
1,323
1,328
1,333
1,338
1,343
1,348
1,353
1,358
1,363
1,368
1,373
1,378
1,383
1,388
1,393
1,398
1,536
1,544
1,551
1,559
1,566
1,574
1,581
1,589
1,596
1,604
1,611
1,619
1,626
1,634
1,641
1,649
1,656
1,664
1,671
1,679
1,356
1,364
1,371
1,379
1,386
1,394
1,401
1,409
1,416
1,424
1,431
1,439
1,446
1,454
1,461
1,469
1,476
1,484
1,491
1,499
12,000
10,000
10,000
10,050
10,100
10,150
10,200
10,250
10,300
10,350
10,400
10,450
10,500
10,550
10,600
10,650
10,700
10,750
10,800
10,850
10,900
10,950
But
less
than
And you are —
11,000
503
508
513
518
523
528
533
538
543
548
553
558
563
568
573
578
583
588
593
598
7,000
7,000
7,050
7,100
7,150
7,200
7,250
7,300
7,350
7,400
7,450
7,500
7,550
7,600
7,650
7,700
7,750
7,800
7,850
7,900
7,950
But
less
than
5,050
5,100
5,150
5,200
5,250
5,300
5,350
5,400
5,450
5,500
5,550
5,600
5,650
5,700
5,750
5,800
5,850
5,900
5,950
6,000
6,000
6,000
6,050
6,100
6,150
6,200
6,250
6,300
6,350
6,400
6,450
6,500
6,550
6,600
6,650
6,700
6,750
6,800
6,850
6,900
6,950
At
least
If line 43
(taxable
income) is —
And you are —
12,050
12,100
12,150
12,200
12,250
12,300
12,350
12,400
12,450
12,500
12,550
12,600
12,650
12,700
12,750
12,800
12,850
12,900
12,950
13,000
13,000
13,050
13,100
13,150
13,200
13,250
13,300
13,350
13,400
13,450
13,500
13,550
13,600
13,650
13,700
13,750
13,800
13,850
13,900
13,950
14,000
¶3701
460
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Tax Table – Continued
If line 43
(taxable
income) is —
At
least
But
less
than
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
14,000
14,000
14,050
14,100
14,150
14,200
14,250
14,300
14,350
14,400
14,450
14,500
14,550
14,600
14,650
14,700
14,750
14,800
14,850
14,900
14,950
14,050
14,100
14,150
14,200
14,250
14,300
14,350
14,400
14,450
14,500
14,550
14,600
14,650
14,700
14,750
14,800
14,850
14,900
14,950
15,000
15,050
15,100
15,150
15,200
15,250
15,300
15,350
15,400
15,450
15,500
15,550
15,600
15,650
15,700
15,750
15,800
15,850
15,900
15,950
16,000
1,403
1,408
1,413
1,418
1,423
1,428
1,433
1,438
1,443
1,448
1,453
1,458
1,463
1,468
1,473
1,478
1,483
1,488
1,493
1,498
1,686
1,694
1,701
1,709
1,716
1,724
1,731
1,739
1,746
1,754
1,761
1,769
1,776
1,784
1,791
1,799
1,806
1,814
1,821
1,829
1,506
1,514
1,521
1,529
1,536
1,544
1,551
1,559
1,566
1,574
1,581
1,589
1,596
1,604
1,611
1,619
1,626
1,634
1,641
1,649
17,000
17,050
17,100
17,150
17,200
17,250
17,300
17,350
17,400
17,450
17,500
17,550
17,600
17,650
17,700
17,750
17,800
17,850
17,900
17,950
1,836
1,844
1,851
1,859
1,866
1,874
1,881
1,889
1,896
1,904
1,911
1,919
1,926
1,934
1,941
1,949
1,956
1,964
1,971
1,979
1,503
1,508
1,513
1,518
1,523
1,528
1,533
1,538
1,543
1,548
1,553
1,558
1,563
1,568
1,573
1,578
1,583
1,588
1,593
1,598
1,836
1,844
1,851
1,859
1,866
1,874
1,881
1,889
1,896
1,904
1,911
1,919
1,926
1,934
1,941
1,949
1,956
1,964
1,971
1,979
1,656
1,664
1,671
1,679
1,686
1,694
1,701
1,709
1,716
1,724
1,731
1,739
1,746
1,754
1,761
1,769
1,776
1,784
1,791
1,799
18,000
18,050
18,100
18,150
18,200
18,250
18,300
18,350
18,400
18,450
18,500
18,550
18,600
18,650
18,700
18,750
18,800
18,850
18,900
18,950
¶3701
16,050
16,100
16,150
16,200
16,250
16,300
16,350
16,400
16,450
16,500
16,550
16,600
16,650
16,700
16,750
16,800
16,850
16,900
16,950
17,000
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
17,050
17,100
17,150
17,200
17,250
17,300
17,350
17,400
17,450
17,500
17,550
17,600
17,650
17,700
17,750
17,800
17,850
17,900
17,950
18,000
18,050
18,100
18,150
18,200
18,250
18,300
18,350
18,400
18,450
18,500
18,550
18,600
18,650
18,700
18,750
18,800
18,850
18,900
18,950
19,000
1,603
1,608
1,613
1,618
1,623
1,628
1,633
1,638
1,643
1,648
1,653
1,658
1,663
1,668
1,674
1,681
1,689
1,696
1,704
1,711
1,986
1,994
2,001
2,009
2,016
2,024
2,031
2,039
2,046
2,054
2,061
2,069
2,076
2,084
2,091
2,099
2,106
2,114
2,121
2,129
1,806
1,814
1,821
1,829
1,836
1,844
1,851
1,859
1,866
1,874
1,881
1,889
1,896
1,904
1,911
1,919
1,926
1,934
1,941
1,949
19,000
19,050
19,100
19,150
19,200
19,250
19,300
19,350
19,400
19,450
19,500
19,550
19,600
19,650
19,700
19,750
19,800
19,850
19,900
19,950
19,050
19,100
19,150
19,200
19,250
19,300
19,350
19,400
19,450
19,500
19,550
19,600
19,650
19,700
19,750
19,800
19,850
19,900
19,950
20,000
But
less
than
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
20,000
1,719
1,726
1,734
1,741
1,749
1,756
1,764
1,771
1,779
1,786
1,794
1,801
1,809
1,816
1,824
1,831
1,839
1,846
1,854
1,861
2,136
2,144
2,151
2,159
2,166
2,174
2,181
2,189
2,196
2,204
2,211
2,219
2,226
2,234
2,241
2,249
2,256
2,264
2,271
2,279
1,956
1,964
1,971
1,979
1,986
1,994
2,001
2,009
2,016
2,024
2,031
2,039
2,046
2,054
2,061
2,069
2,076
2,084
2,091
2,099
20,000
20,050
20,100
20,150
20,200
20,250
20,300
20,350
20,400
20,450
20,500
20,550
20,600
20,650
20,700
20,750
20,800
20,850
20,900
20,950
2,286
2,294
2,301
2,309
2,316
2,324
2,331
2,339
2,346
2,354
2,361
2,369
2,376
2,384
2,391
2,399
2,406
2,414
2,421
2,429
1,869
1,876
1,884
1,891
1,899
1,906
1,914
1,921
1,929
1,936
1,944
1,951
1,959
1,966
1,974
1,981
1,989
1,996
2,004
2,011
2,286
2,294
2,301
2,309
2,316
2,324
2,331
2,339
2,346
2,354
2,361
2,369
2,376
2,384
2,391
2,399
2,406
2,414
2,421
2,429
2,106
2,114
2,121
2,129
2,136
2,144
2,151
2,159
2,166
2,174
2,181
2,189
2,196
2,204
2,211
2,219
2,226
2,234
2,241
2,249
21,000
21,050
21,100
21,150
21,200
21,250
21,300
21,350
21,400
21,450
21,500
21,550
21,600
21,650
21,700
21,750
21,800
21,850
21,900
21,950
20,050
20,100
20,150
20,200
20,250
20,300
20,350
20,400
20,450
20,500
20,550
20,600
20,650
20,700
20,750
20,800
20,850
20,900
20,950
21,000
2,586
2,594
2,601
2,609
2,616
2,624
2,631
2,639
2,646
2,654
2,661
2,669
2,676
2,684
2,691
2,699
2,706
2,714
2,721
2,729
2,169
2,176
2,184
2,191
2,199
2,206
2,214
2,221
2,229
2,236
2,244
2,251
2,259
2,266
2,274
2,281
2,289
2,296
2,304
2,311
2,586
2,594
2,601
2,609
2,616
2,624
2,631
2,639
2,646
2,654
2,661
2,669
2,676
2,684
2,691
2,699
2,706
2,714
2,721
2,729
2,406
2,414
2,421
2,429
2,436
2,444
2,451
2,459
2,466
2,474
2,481
2,489
2,496
2,504
2,511
2,519
2,526
2,534
2,541
2,549
2,736
2,744
2,751
2,759
2,766
2,774
2,781
2,789
2,796
2,804
2,811
2,819
2,826
2,834
2,841
2,849
2,856
2,864
2,871
2,879
2,319
2,326
2,334
2,341
2,349
2,356
2,364
2,371
2,379
2,386
2,394
2,401
2,409
2,416
2,424
2,431
2,439
2,446
2,454
2,461
2,736
2,744
2,751
2,759
2,766
2,774
2,781
2,789
2,796
2,804
2,811
2,819
2,826
2,834
2,841
2,849
2,856
2,864
2,871
2,879
2,556
2,564
2,571
2,579
2,586
2,594
2,601
2,609
2,616
2,624
2,631
2,639
2,646
2,654
2,661
2,669
2,676
2,684
2,691
2,699
2,886
2,894
2,901
2,909
2,916
2,924
2,931
2,939
2,946
2,954
2,961
2,969
2,976
2,984
2,991
2,999
3,006
3,014
3,021
3,029
2,469
2,476
2,484
2,491
2,499
2,506
2,514
2,521
2,529
2,536
2,544
2,551
2,559
2,566
2,574
2,581
2,589
2,596
2,604
2,611
2,886
2,894
2,901
2,909
2,916
2,924
2,931
2,939
2,946
2,954
2,961
2,969
2,976
2,984
2,991
2,999
3,006
3,014
3,021
3,029
2,706
2,714
2,721
2,729
2,736
2,744
2,751
2,759
2,766
2,774
2,781
2,789
2,796
2,804
2,811
2,819
2,826
2,834
2,841
2,849
21,000
19,000
1,986
1,994
2,001
2,009
2,016
2,024
2,031
2,039
2,046
2,054
2,061
2,069
2,076
2,084
2,091
2,099
2,106
2,114
2,121
2,129
At
least
2,136
2,144
2,151
2,159
2,166
2,174
2,181
2,189
2,196
2,204
2,211
2,219
2,226
2,234
2,241
2,249
2,256
2,264
2,271
2,279
18,000
16,000
16,000
16,050
16,100
16,150
16,200
16,250
16,300
16,350
16,400
16,450
16,500
16,550
16,600
16,650
16,700
16,750
16,800
16,850
16,900
16,950
But
less
than
And you are —
17,000
1,686
1,694
1,701
1,709
1,716
1,724
1,731
1,739
1,746
1,754
1,761
1,769
1,776
1,784
1,791
1,799
1,806
1,814
1,821
1,829
15,000
15,000
15,050
15,100
15,150
15,200
15,250
15,300
15,350
15,400
15,450
15,500
15,550
15,600
15,650
15,700
15,750
15,800
15,850
15,900
15,950
At
least
If line 43
(taxable
income) is —
21,050
21,100
21,150
21,200
21,250
21,300
21,350
21,400
21,450
21,500
21,550
21,600
21,650
21,700
21,750
21,800
21,850
21,900
21,950
22,000
22,000
2,436
2,444
2,451
2,459
2,466
2,474
2,481
2,489
2,496
2,504
2,511
2,519
2,526
2,534
2,541
2,549
2,556
2,564
2,571
2,579
2,019
2,026
2,034
2,041
2,049
2,056
2,064
2,071
2,079
2,086
2,094
2,101
2,109
2,116
2,124
2,131
2,139
2,146
2,154
2,161
2,436
2,444
2,451
2,459
2,466
2,474
2,481
2,489
2,496
2,504
2,511
2,519
2,526
2,534
2,541
2,549
2,556
2,564
2,571
2,579
2,256
2,264
2,271
2,279
2,286
2,294
2,301
2,309
2,316
2,324
2,331
2,339
2,346
2,354
2,361
2,369
2,376
2,384
2,391
2,399
22,000
22,050
22,100
22,150
22,200
22,250
22,300
22,350
22,400
22,450
22,500
22,550
22,600
22,650
22,700
22,750
22,800
22,850
22,900
22,950
22,050
22,100
22,150
22,200
22,250
22,300
22,350
22,400
22,450
22,500
22,550
22,600
22,650
22,700
22,750
22,800
22,850
22,900
22,950
23,000
A P P E N D I X B — Ta x Ta b l e a n d R a t e S c h e d u l e s
461
2009 Tax Table – Continued
If line 43
(taxable
income) is —
At
least
But
less
than
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
23,000
23,000
23,050
23,100
23,150
23,200
23,250
23,300
23,350
23,400
23,450
23,500
23,550
23,600
23,650
23,700
23,750
23,800
23,850
23,900
23,950
23,050
23,100
23,150
23,200
23,250
23,300
23,350
23,400
23,450
23,500
23,550
23,600
23,650
23,700
23,750
23,800
23,850
23,900
23,950
24,000
24,050
24,100
24,150
24,200
24,250
24,300
24,350
24,400
24,450
24,500
24,550
24,600
24,650
24,700
24,750
24,800
24,850
24,900
24,950
25,000
3,036
3,044
3,051
3,059
3,066
3,074
3,081
3,089
3,096
3,104
3,111
3,119
3,126
3,134
3,141
3,149
3,156
3,164
3,171
3,179
2,619
2,626
2,634
2,641
2,649
2,656
2,664
2,671
2,679
2,686
2,694
2,701
2,709
2,716
2,724
2,731
2,739
2,746
2,754
2,761
3,036
3,044
3,051
3,059
3,066
3,074
3,081
3,089
3,096
3,104
3,111
3,119
3,126
3,134
3,141
3,149
3,156
3,164
3,171
3,179
2,856
2,864
2,871
2,879
2,886
2,894
2,901
2,909
2,916
2,924
2,931
2,939
2,946
2,954
2,961
2,969
2,976
2,984
2,991
2,999
26,000
26,050
26,100
26,150
26,200
26,250
26,300
26,350
26,400
26,450
26,500
26,550
26,600
26,650
26,700
26,750
26,800
26,850
26,900
26,950
3,186
3,194
3,201
3,209
3,216
3,224
3,231
3,239
3,246
3,254
3,261
3,269
3,276
3,284
3,291
3,299
3,306
3,314
3,321
3,329
2,769
2,776
2,784
2,791
2,799
2,806
2,814
2,821
2,829
2,836
2,844
2,851
2,859
2,866
2,874
2,881
2,889
2,896
2,904
2,911
3,186
3,194
3,201
3,209
3,216
3,224
3,231
3,239
3,246
3,254
3,261
3,269
3,276
3,284
3,291
3,299
3,306
3,314
3,321
3,329
3,006
3,014
3,021
3,029
3,036
3,044
3,051
3,059
3,066
3,074
3,081
3,089
3,096
3,104
3,111
3,119
3,126
3,134
3,141
3,149
27,000
27,050
27,100
27,150
27,200
27,250
27,300
27,350
27,400
27,450
27,500
27,550
27,600
27,650
27,700
27,750
27,800
27,850
27,900
27,950
25,050
25,100
25,150
25,200
25,250
25,300
25,350
25,400
25,450
25,500
25,550
25,600
25,650
25,700
25,750
25,800
25,850
25,900
25,950
26,000
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
3,336
3,344
3,351
3,359
3,366
3,374
3,381
3,389
3,396
3,404
3,411
3,419
3,426
3,434
3,441
3,449
3,456
3,464
3,471
3,479
2,919
2,926
2,934
2,941
2,949
2,956
2,964
2,971
2,979
2,986
2,994
3,001
3,009
3,016
3,024
3,031
3,039
3,046
3,054
3,061
3,336
3,344
3,351
3,359
3,366
3,374
3,381
3,389
3,396
3,404
3,411
3,419
3,426
3,434
3,441
3,449
3,456
3,464
3,471
3,479
3,156
3,164
3,171
3,179
3,186
3,194
3,201
3,209
3,216
3,224
3,231
3,239
3,246
3,254
3,261
3,269
3,276
3,284
3,291
3,299
28,000
28,050
28,100
28,150
28,200
28,250
28,300
28,350
28,400
28,450
28,500
28,550
28,600
28,650
28,700
28,750
28,800
28,850
28,900
28,950
26,050
26,100
26,150
26,200
26,250
26,300
26,350
26,400
26,450
26,500
26,550
26,600
26,650
26,700
26,750
26,800
26,850
26,900
26,950
27,000
27,050
27,100
27,150
27,200
27,250
27,300
27,350
27,400
27,450
27,500
27,550
27,600
27,650
27,700
27,750
27,800
27,850
27,900
27,950
28,000
3,486
3,494
3,501
3,509
3,516
3,524
3,531
3,539
3,546
3,554
3,561
3,569
3,576
3,584
3,591
3,599
3,606
3,614
3,621
3,629
3,069
3,076
3,084
3,091
3,099
3,106
3,114
3,121
3,129
3,136
3,144
3,151
3,159
3,166
3,174
3,181
3,189
3,196
3,204
3,211
3,486
3,494
3,501
3,509
3,516
3,524
3,531
3,539
3,546
3,554
3,561
3,569
3,576
3,584
3,591
3,599
3,606
3,614
3,621
3,629
3,306
3,314
3,321
3,329
3,336
3,344
3,351
3,359
3,366
3,374
3,381
3,389
3,396
3,404
3,411
3,419
3,426
3,434
3,441
3,449
29,000
29,050
29,100
29,150
29,200
29,250
29,300
29,350
29,400
29,450
29,500
29,550
29,600
29,650
29,700
29,750
29,800
29,850
29,900
29,950
3,636
3,644
3,651
3,659
3,666
3,674
3,681
3,689
3,696
3,704
3,711
3,719
3,726
3,734
3,741
3,749
3,756
3,764
3,771
3,779
3,219
3,226
3,234
3,241
3,249
3,256
3,264
3,271
3,279
3,286
3,294
3,301
3,309
3,316
3,324
3,331
3,339
3,346
3,354
3,361
3,636
3,644
3,651
3,659
3,666
3,674
3,681
3,689
3,696
3,704
3,711
3,719
3,726
3,734
3,741
3,749
3,756
3,764
3,771
3,779
3,456
3,464
3,471
3,479
3,486
3,494
3,501
3,509
3,516
3,524
3,531
3,539
3,546
3,554
3,561
3,569
3,576
3,584
3,591
3,599
30,000
30,050
30,100
30,150
30,200
30,250
30,300
30,350
30,400
30,450
30,500
30,550
30,600
30,650
30,700
30,750
30,800
30,850
30,900
30,950
But
less
than
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
3,786
3,794
3,801
3,809
3,816
3,824
3,831
3,839
3,846
3,854
3,861
3,869
3,876
3,884
3,891
3,899
3,906
3,914
3,921
3,929
3,369
3,376
3,384
3,391
3,399
3,406
3,414
3,421
3,429
3,436
3,444
3,451
3,459
3,466
3,474
3,481
3,489
3,496
3,504
3,511
3,786
3,794
3,801
3,809
3,816
3,824
3,831
3,839
3,846
3,854
3,861
3,869
3,876
3,884
3,891
3,899
3,906
3,914
3,921
3,929
3,606
3,614
3,621
3,629
3,636
3,644
3,651
3,659
3,666
3,674
3,681
3,689
3,696
3,704
3,711
3,719
3,726
3,734
3,741
3,749
31,000
31,050
31,100
31,150
31,200
31,250
31,300
31,350
31,400
31,450
31,500
31,550
31,600
31,650
31,700
31,750
31,800
31,850
31,900
31,950
29,050
29,100
29,150
29,200
29,250
29,300
29,350
29,400
29,450
29,500
29,550
29,600
29,650
29,700
29,750
29,800
29,850
29,900
29,950
30,000
3,936
3,944
3,951
3,959
3,966
3,974
3,981
3,989
3,996
4,004
4,011
4,019
4,026
4,034
4,041
4,049
4,056
4,064
4,071
4,079
3,519
3,526
3,534
3,541
3,549
3,556
3,564
3,571
3,579
3,586
3,594
3,601
3,609
3,616
3,624
3,631
3,639
3,646
3,654
3,661
3,936
3,944
3,951
3,959
3,966
3,974
3,981
3,989
3,996
4,004
4,011
4,019
4,026
4,034
4,041
4,049
4,056
4,064
4,071
4,079
3,756
3,764
3,771
3,779
3,786
3,794
3,801
3,809
3,816
3,824
3,831
3,839
3,846
3,854
3,861
3,869
3,876
3,884
3,891
3,899
4,086
4,094
4,101
4,109
4,116
4,124
4,131
4,139
4,146
4,154
4,161
4,169
4,176
4,184
4,191
4,199
4,206
4,214
4,221
4,229
3,669
3,676
3,684
3,691
3,699
3,706
3,714
3,721
3,729
3,736
3,744
3,751
3,759
3,766
3,774
3,781
3,789
3,796
3,804
3,811
4,086
4,094
4,101
4,109
4,116
4,124
4,131
4,139
4,146
4,154
4,161
4,169
4,176
4,184
4,191
4,199
4,206
4,214
4,221
4,229
3,906
3,914
3,921
3,929
3,936
3,944
3,951
3,959
3,966
3,974
3,981
3,989
3,996
4,004
4,011
4,019
4,026
4,034
4,041
4,049
4,236
4,244
4,251
4,259
4,266
4,274
4,281
4,289
4,296
4,304
4,311
4,319
4,326
4,334
4,341
4,349
4,356
4,364
4,371
4,379
3,819
3,826
3,834
3,841
3,849
3,856
3,864
3,871
3,879
3,886
3,894
3,901
3,909
3,916
3,924
3,931
3,939
3,946
3,954
3,961
4,236
4,244
4,251
4,259
4,266
4,274
4,281
4,289
4,296
4,304
4,311
4,319
4,326
4,334
4,341
4,349
4,356
4,364
4,371
4,379
4,056
4,064
4,071
4,079
4,086
4,094
4,101
4,109
4,116
4,124
4,131
4,139
4,146
4,154
4,161
4,169
4,176
4,184
4,191
4,199
30,000
28,000
28,050
28,100
28,150
28,200
28,250
28,300
28,350
28,400
28,450
28,500
28,550
28,600
28,650
28,700
28,750
28,800
28,850
28,900
28,950
29,000
At
least
And you are —
29,000
27,000
25,000
25,000
25,050
25,100
25,150
25,200
25,250
25,300
25,350
25,400
25,450
25,500
25,550
25,600
25,650
25,700
25,750
25,800
25,850
25,900
25,950
But
less
than
26,000
24,000
24,000
24,050
24,100
24,150
24,200
24,250
24,300
24,350
24,400
24,450
24,500
24,550
24,600
24,650
24,700
24,750
24,800
24,850
24,900
24,950
At
least
If line 43
(taxable
income) is —
And you are —
30,050
30,100
30,150
30,200
30,250
30,300
30,350
30,400
30,450
30,500
30,550
30,600
30,650
30,700
30,750
30,800
30,850
30,900
30,950
31,000
31,000
31,050
31,100
31,150
31,200
31,250
31,300
31,350
31,400
31,450
31,500
31,550
31,600
31,650
31,700
31,750
31,800
31,850
31,900
31,950
32,000
¶3701
462
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Tax Table – Continued
If line 43
(taxable
income) is —
At
least
But
less
than
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
32,000
32,000
32,050
32,100
32,150
32,200
32,250
32,300
32,350
32,400
32,450
32,500
32,550
32,600
32,650
32,700
32,750
32,800
32,850
32,900
32,950
32,050
32,100
32,150
32,200
32,250
32,300
32,350
32,400
32,450
32,500
32,550
32,600
32,650
32,700
32,750
32,800
32,850
32,900
32,950
33,000
33,050
33,100
33,150
33,200
33,250
33,300
33,350
33,400
33,450
33,500
33,550
33,600
33,650
33,700
33,750
33,800
33,850
33,900
33,950
34,000
3,969
3,976
3,984
3,991
3,999
4,006
4,014
4,021
4,029
4,036
4,044
4,051
4,059
4,066
4,074
4,081
4,089
4,096
4,104
4,111
4,386
4,394
4,401
4,409
4,416
4,424
4,431
4,439
4,446
4,454
4,461
4,469
4,476
4,484
4,491
4,499
4,506
4,514
4,521
4,529
4,206
4,214
4,221
4,229
4,236
4,244
4,251
4,259
4,266
4,274
4,281
4,289
4,296
4,304
4,311
4,319
4,326
4,334
4,341
4,349
35,000
35,050
35,100
35,150
35,200
35,250
35,300
35,350
35,400
35,450
35,500
35,550
35,600
35,650
35,700
35,750
35,800
35,850
35,900
35,950
4,536
4,544
4,551
4,559
4,566
4,574
4,581
4,589
4,596
4,604
4,611
4,619
4,626
4,634
4,641
4,649
4,656
4,664
4,671
4,681
4,119
4,126
4,134
4,141
4,149
4,156
4,164
4,171
4,179
4,186
4,194
4,201
4,209
4,216
4,224
4,231
4,239
4,246
4,254
4,261
4,536
4,544
4,551
4,559
4,566
4,574
4,581
4,589
4,596
4,604
4,611
4,619
4,626
4,634
4,641
4,649
4,656
4,664
4,671
4,681
4,356
4,364
4,371
4,379
4,386
4,394
4,401
4,409
4,416
4,424
4,431
4,439
4,446
4,454
4,461
4,469
4,476
4,484
4,491
4,499
36,000
36,050
36,100
36,150
36,200
36,250
36,300
36,350
36,400
36,450
36,500
36,550
36,600
36,650
36,700
36,750
36,800
36,850
36,900
36,950
¶3701
34,050
34,100
34,150
34,200
34,250
34,300
34,350
34,400
34,450
34,500
34,550
34,600
34,650
34,700
34,750
34,800
34,850
34,900
34,950
35,000
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
35,050
35,100
35,150
35,200
35,250
35,300
35,350
35,400
35,450
35,500
35,550
35,600
35,650
35,700
35,750
35,800
35,850
35,900
35,950
36,000
36,050
36,100
36,150
36,200
36,250
36,300
36,350
36,400
36,450
36,500
36,550
36,600
36,650
36,700
36,750
36,800
36,850
36,900
36,950
37,000
4,269
4,276
4,284
4,291
4,299
4,306
4,314
4,321
4,329
4,336
4,344
4,351
4,359
4,366
4,374
4,381
4,389
4,396
4,404
4,411
4,694
4,706
4,719
4,731
4,744
4,756
4,769
4,781
4,794
4,806
4,819
4,831
4,844
4,856
4,869
4,881
4,894
4,906
4,919
4,931
4,506
4,514
4,521
4,529
4,536
4,544
4,551
4,559
4,566
4,574
4,581
4,589
4,596
4,604
4,611
4,619
4,626
4,634
4,641
4,649
37,000
37,050
37,100
37,150
37,200
37,250
37,300
37,350
37,400
37,450
37,500
37,550
37,600
37,650
37,700
37,750
37,800
37,850
37,900
37,950
37,050
37,100
37,150
37,200
37,250
37,300
37,350
37,400
37,450
37,500
37,550
37,600
37,650
37,700
37,750
37,800
37,850
37,900
37,950
38,000
But
less
than
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
38,000
4,419
4,426
4,434
4,441
4,449
4,456
4,464
4,471
4,479
4,486
4,494
4,501
4,509
4,516
4,524
4,531
4,539
4,546
4,554
4,561
4,944
4,956
4,969
4,981
4,994
5,006
5,019
5,031
5,044
5,056
5,069
5,081
5,094
5,106
5,119
5,131
5,144
5,156
5,169
5,181
4,656
4,664
4,671
4,679
4,686
4,694
4,701
4,709
4,716
4,724
4,731
4,739
4,746
4,754
4,761
4,769
4,776
4,784
4,791
4,799
38,000
38,050
38,100
38,150
38,200
38,250
38,300
38,350
38,400
38,450
38,500
38,550
38,600
38,650
38,700
38,750
38,800
38,850
38,900
38,950
5,194
5,206
5,219
5,231
5,244
5,256
5,269
5,281
5,294
5,306
5,319
5,331
5,344
5,356
5,369
5,381
5,394
5,406
5,419
5,431
4,569
4,576
4,584
4,591
4,599
4,606
4,614
4,621
4,629
4,636
4,644
4,651
4,659
4,666
4,674
4,681
4,689
4,696
4,704
4,711
5,194
5,206
5,219
5,231
5,244
5,256
5,269
5,281
5,294
5,306
5,319
5,331
5,344
5,356
5,369
5,381
5,394
5,406
5,419
5,431
4,806
4,814
4,821
4,829
4,836
4,844
4,851
4,859
4,866
4,874
4,881
4,889
4,896
4,904
4,911
4,919
4,926
4,934
4,941
4,949
39,000
39,050
39,100
39,150
39,200
39,250
39,300
39,350
39,400
39,450
39,500
39,550
39,600
39,650
39,700
39,750
39,800
39,850
39,900
39,950
38,050
38,100
38,150
38,200
38,250
38,300
38,350
38,400
38,450
38,500
38,550
38,600
38,650
38,700
38,750
38,800
38,850
38,900
38,950
39,000
5,694
5,706
5,719
5,731
5,744
5,756
5,769
5,781
5,794
5,806
5,819
5,831
5,844
5,856
5,869
5,881
5,894
5,906
5,919
5,931
4,869
4,876
4,884
4,891
4,899
4,906
4,914
4,921
4,929
4,936
4,944
4,951
4,959
4,966
4,974
4,981
4,989
4,996
5,004
5,011
5,694
5,706
5,719
5,731
5,744
5,756
5,769
5,781
5,794
5,806
5,819
5,831
5,844
5,856
5,869
5,881
5,894
5,906
5,919
5,931
5,106
5,114
5,121
5,129
5,136
5,144
5,151
5,159
5,166
5,174
5,181
5,189
5,196
5,204
5,211
5,219
5,226
5,234
5,241
5,249
5,944
5,956
5,969
5,981
5,994
6,006
6,019
6,031
6,044
6,056
6,069
6,081
6,094
6,106
6,119
6,131
6,144
6,156
6,169
6,181
5,019
5,026
5,034
5,041
5,049
5,056
5,064
5,071
5,079
5,086
5,094
5,101
5,109
5,116
5,124
5,131
5,139
5,146
5,154
5,161
5,944
5,956
5,969
5,981
5,994
6,006
6,019
6,031
6,044
6,056
6,069
6,081
6,094
6,106
6,119
6,131
6,144
6,156
6,169
6,181
5,256
5,264
5,271
5,279
5,286
5,294
5,301
5,309
5,316
5,324
5,331
5,339
5,346
5,354
5,361
5,369
5,376
5,384
5,391
5,399
6,194
6,206
6,219
6,231
6,244
6,256
6,269
6,281
6,294
6,306
6,319
6,331
6,344
6,356
6,369
6,381
6,394
6,406
6,419
6,431
5,169
5,176
5,184
5,191
5,199
5,206
5,214
5,221
5,229
5,236
5,244
5,251
5,259
5,266
5,274
5,281
5,289
5,296
5,304
5,311
6,194
6,206
6,219
6,231
6,244
6,256
6,269
6,281
6,294
6,306
6,319
6,331
6,344
6,356
6,369
6,381
6,394
6,406
6,419
6,431
5,406
5,414
5,421
5,429
5,436
5,444
5,451
5,459
5,466
5,474
5,481
5,489
5,496
5,504
5,511
5,519
5,526
5,534
5,541
5,549
39,000
37,000
4,694
4,706
4,719
4,731
4,744
4,756
4,769
4,781
4,794
4,806
4,819
4,831
4,844
4,856
4,869
4,881
4,894
4,906
4,919
4,931
At
least
4,944
4,956
4,969
4,981
4,994
5,006
5,019
5,031
5,044
5,056
5,069
5,081
5,094
5,106
5,119
5,131
5,144
5,156
5,169
5,181
36,000
34,000
34,000
34,050
34,100
34,150
34,200
34,250
34,300
34,350
34,400
34,450
34,500
34,550
34,600
34,650
34,700
34,750
34,800
34,850
34,900
34,950
But
less
than
And you are —
35,000
4,386
4,394
4,401
4,409
4,416
4,424
4,431
4,439
4,446
4,454
4,461
4,469
4,476
4,484
4,491
4,499
4,506
4,514
4,521
4,529
33,000
33,000
33,050
33,100
33,150
33,200
33,250
33,300
33,350
33,400
33,450
33,500
33,550
33,600
33,650
33,700
33,750
33,800
33,850
33,900
33,950
At
least
If line 43
(taxable
income) is —
39,050
39,100
39,150
39,200
39,250
39,300
39,350
39,400
39,450
39,500
39,550
39,600
39,650
39,700
39,750
39,800
39,850
39,900
39,950
40,000
40,000
5,444
5,456
5,469
5,481
5,494
5,506
5,519
5,531
5,544
5,556
5,569
5,581
5,594
5,606
5,619
5,631
5,644
5,656
5,669
5,681
4,719
4,726
4,734
4,741
4,749
4,756
4,764
4,771
4,779
4,786
4,794
4,801
4,809
4,816
4,824
4,831
4,839
4,846
4,854
4,861
5,444
5,456
5,469
5,481
5,494
5,506
5,519
5,531
5,544
5,556
5,569
5,581
5,594
5,606
5,619
5,631
5,644
5,656
5,669
5,681
4,956
4,964
4,971
4,979
4,986
4,994
5,001
5,009
5,016
5,024
5,031
5,039
5,046
5,054
5,061
5,069
5,076
5,084
5,091
5,099
40,000
40,050
40,100
40,150
40,200
40,250
40,300
40,350
40,400
40,450
40,500
40,550
40,600
40,650
40,700
40,750
40,800
40,850
40,900
40,950
40,050
40,100
40,150
40,200
40,250
40,300
40,350
40,400
40,450
40,500
40,550
40,600
40,650
40,700
40,750
40,800
40,850
40,900
40,950
41,000
A P P E N D I X B — Ta x Ta b l e a n d R a t e S c h e d u l e s
463
2009 Tax Table – Continued
If line 43
(taxable
income) is —
At
least
But
less
than
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
41,000
41,000
41,050
41,100
41,150
41,200
41,250
41,300
41,350
41,400
41,450
41,500
41,550
41,600
41,650
41,700
41,750
41,800
41,850
41,900
41,950
41,050
41,100
41,150
41,200
41,250
41,300
41,350
41,400
41,450
41,500
41,550
41,600
41,650
41,700
41,750
41,800
41,850
41,900
41,950
42,000
42,050
42,100
42,150
42,200
42,250
42,300
42,350
42,400
42,450
42,500
42,550
42,600
42,650
42,700
42,750
42,800
42,850
42,900
42,950
43,000
5,319
5,326
5,334
5,341
5,349
5,356
5,364
5,371
5,379
5,386
5,394
5,401
5,409
5,416
5,424
5,431
5,439
5,446
5,454
5,461
6,444
6,456
6,469
6,481
6,494
6,506
6,519
6,531
6,544
6,556
6,569
6,581
6,594
6,606
6,619
6,631
6,644
6,656
6,669
6,681
5,556
5,564
5,571
5,579
5,586
5,594
5,601
5,609
5,616
5,624
5,631
5,639
5,646
5,654
5,661
5,669
5,676
5,684
5,691
5,699
43,050
43,100
43,150
43,200
43,250
43,300
43,350
43,400
43,450
43,500
43,550
43,600
43,650
43,700
43,750
43,800
43,850
43,900
43,950
44,000
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
44,000
44,050
44,100
44,150
44,200
44,250
44,300
44,350
44,400
44,450
44,500
44,550
44,600
44,650
44,700
44,750
44,800
44,850
44,900
44,950
44,050
44,100
44,150
44,200
44,250
44,300
44,350
44,400
44,450
44,500
44,550
44,600
44,650
44,700
44,750
44,800
44,850
44,900
44,950
45,000
6,694
6,706
6,719
6,731
6,744
6,756
6,769
6,781
6,794
6,806
6,819
6,831
6,844
6,856
6,869
6,881
6,894
6,906
6,919
6,931
5,469
5,476
5,484
5,491
5,499
5,506
5,514
5,521
5,529
5,536
5,544
5,551
5,559
5,566
5,574
5,581
5,589
5,596
5,604
5,611
6,694
6,706
6,719
6,731
6,744
6,756
6,769
6,781
6,794
6,806
6,819
6,831
6,844
6,856
6,869
6,881
6,894
6,906
6,919
6,931
5,706
5,714
5,721
5,729
5,736
5,744
5,751
5,759
5,766
5,774
5,781
5,789
5,796
5,804
5,811
5,819
5,826
5,834
5,841
5,849
45,000
45,050
45,100
45,150
45,200
45,250
45,300
45,350
45,400
45,450
45,500
45,550
45,600
45,650
45,700
45,750
45,800
45,850
45,900
45,950
6,944
6,956
6,969
6,981
6,994
7,006
7,019
7,031
7,044
7,056
7,069
7,081
7,094
7,106
7,119
7,131
7,144
7,156
7,169
7,181
5,619
5,626
5,634
5,641
5,649
5,656
5,664
5,671
5,679
5,686
5,694
5,701
5,709
5,716
5,724
5,731
5,739
5,746
5,754
5,761
6,944
6,956
6,969
6,981
6,994
7,006
7,019
7,031
7,044
7,056
7,069
7,081
7,094
7,106
7,119
7,131
7,144
7,156
7,169
7,181
5,856
5,864
5,871
5,879
5,886
5,894
5,901
5,909
5,916
5,924
5,931
5,939
5,946
5,954
5,961
5,969
5,976
5,984
5,991
5,999
46,000
46,050
46,100
46,150
46,200
46,250
46,300
46,350
46,400
46,450
46,500
46,550
46,600
46,650
46,700
46,750
46,800
46,850
46,900
46,950
45,050
45,100
45,150
45,200
45,250
45,300
45,350
45,400
45,450
45,500
45,550
45,600
45,650
45,700
45,750
45,800
45,850
45,900
45,950
46,000
5,769
5,776
5,784
5,791
5,799
5,806
5,814
5,821
5,829
5,836
5,844
5,851
5,859
5,866
5,874
5,881
5,889
5,896
5,904
5,911
7,194
7,206
7,219
7,231
7,244
7,256
7,269
7,281
7,294
7,306
7,319
7,331
7,344
7,356
7,369
7,381
7,394
7,406
7,419
7,431
6,006
6,014
6,021
6,029
6,036
6,044
6,051
6,059
6,066
6,074
6,081
6,089
6,096
6,104
6,111
6,119
6,126
6,134
6,141
6,149
But
less
than
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
47,000
47,050
47,100
47,150
47,200
47,250
47,300
47,350
47,400
47,450
47,500
47,550
47,600
47,650
47,700
47,750
47,800
47,850
47,900
47,950
47,050
47,100
47,150
47,200
47,250
47,300
47,350
47,400
47,450
47,500
47,550
47,600
47,650
47,700
47,750
47,800
47,850
47,900
47,950
48,000
7,944
7,956
7,969
7,981
7,994
8,006
8,019
8,031
8,044
8,056
8,069
8,081
8,094
8,106
8,119
8,131
8,144
8,156
8,169
8,181
6,219
6,226
6,234
6,241
6,249
6,256
6,264
6,271
6,279
6,286
6,294
6,301
6,309
6,316
6,324
6,331
6,339
6,346
6,354
6,361
7,944
7,956
7,969
7,981
7,994
8,006
8,019
8,031
8,044
8,056
8,069
8,081
8,094
8,106
8,119
8,131
8,144
8,156
8,169
8,181
6,609
6,621
6,634
6,646
6,659
6,671
6,684
6,696
6,709
6,721
6,734
6,746
6,759
6,771
6,784
6,796
6,809
6,821
6,834
6,846
8,194
8,206
8,219
8,231
8,244
8,256
8,269
8,281
8,294
8,306
8,319
8,331
8,344
8,356
8,369
8,381
8,394
8,406
8,419
8,431
6,369
6,376
6,384
6,391
6,399
6,406
6,414
6,421
6,429
6,436
6,444
6,451
6,459
6,466
6,474
6,481
6,489
6,496
6,504
6,511
8,194
8,206
8,219
8,231
8,244
8,256
8,269
8,281
8,294
8,306
8,319
8,331
8,344
8,356
8,369
8,381
8,394
8,406
8,419
8,431
6,859
6,871
6,884
6,896
6,909
6,921
6,934
6,946
6,959
6,971
6,984
6,996
7,009
7,021
7,034
7,046
7,059
7,071
7,084
7,096
8,444
8,456
8,469
8,481
8,494
8,506
8,519
8,531
8,544
8,556
8,569
8,581
8,594
8,606
8,619
8,631
8,644
8,656
8,669
8,681
6,519
6,526
6,534
6,541
6,549
6,556
6,564
6,571
6,579
6,586
6,594
6,601
6,609
6,616
6,624
6,631
6,639
6,646
6,654
6,661
8,444
8,456
8,469
8,481
8,494
8,506
8,519
8,531
8,544
8,556
8,569
8,581
8,594
8,606
8,619
8,631
8,644
8,656
8,669
8,681
7,109
7,121
7,134
7,146
7,159
7,171
7,184
7,196
7,209
7,221
7,234
7,246
7,259
7,271
7,284
7,296
7,309
7,321
7,334
7,346
48,000
7,444
7,456
7,469
7,481
7,494
7,506
7,519
7,531
7,544
7,556
7,569
7,581
7,594
7,606
7,619
7,631
7,644
7,656
7,669
7,681
5,919
5,926
5,934
5,941
5,949
5,956
5,964
5,971
5,979
5,986
5,994
6,001
6,009
6,016
6,024
6,031
6,039
6,046
6,054
6,061
7,444
7,456
7,469
7,481
7,494
7,506
7,519
7,531
7,544
7,556
7,569
7,581
7,594
7,606
7,619
7,631
7,644
7,656
7,669
7,681
6,156
6,164
6,171
6,179
6,186
6,194
6,201
6,209
6,216
6,224
6,234
6,246
6,259
6,271
6,284
6,296
6,309
6,321
6,334
6,346
48,000
48,050
48,100
48,150
48,200
48,250
48,300
48,350
48,400
48,450
48,500
48,550
48,600
48,650
48,700
48,750
48,800
48,850
48,900
48,950
7,694
7,706
7,719
7,731
7,744
7,756
7,769
7,781
7,794
7,806
7,819
7,831
7,844
7,856
7,869
7,881
7,894
7,906
7,919
7,931
6,069
6,076
6,084
6,091
6,099
6,106
6,114
6,121
6,129
6,136
6,144
6,151
6,159
6,166
6,174
6,181
6,189
6,196
6,204
6,211
7,694
7,706
7,719
7,731
7,744
7,756
7,769
7,781
7,794
7,806
7,819
7,831
7,844
7,856
7,869
7,881
7,894
7,906
7,919
7,931
6,359
6,371
6,384
6,396
6,409
6,421
6,434
6,446
6,459
6,471
6,484
6,496
6,509
6,521
6,534
6,546
6,559
6,571
6,584
6,596
49,000
49,050
49,100
49,150
49,200
49,250
49,300
49,350
49,400
49,450
49,500
49,550
49,600
49,650
49,700
49,750
49,800
49,850
49,900
49,950
46,000
46,050
46,100
46,150
46,200
46,250
46,300
46,350
46,400
46,450
46,500
46,550
46,600
46,650
46,700
46,750
46,800
46,850
46,900
46,950
47,000
At
least
And you are —
47,000
7,194
7,206
7,219
7,231
7,244
7,256
7,269
7,281
7,294
7,306
7,319
7,331
7,344
7,356
7,369
7,381
7,394
7,406
7,419
7,431
45,000
43,000
43,000
43,050
43,100
43,150
43,200
43,250
43,300
43,350
43,400
43,450
43,500
43,550
43,600
43,650
43,700
43,750
43,800
43,850
43,900
43,950
But
less
than
44,000
6,444
6,456
6,469
6,481
6,494
6,506
6,519
6,531
6,544
6,556
6,569
6,581
6,594
6,606
6,619
6,631
6,644
6,656
6,669
6,681
42,000
42,000
42,050
42,100
42,150
42,200
42,250
42,300
42,350
42,400
42,450
42,500
42,550
42,600
42,650
42,700
42,750
42,800
42,850
42,900
42,950
At
least
If line 43
(taxable
income) is —
And you are —
48,050
48,100
48,150
48,200
48,250
48,300
48,350
48,400
48,450
48,500
48,550
48,600
48,650
48,700
48,750
48,800
48,850
48,900
48,950
49,000
49,000
49,050
49,100
49,150
49,200
49,250
49,300
49,350
49,400
49,450
49,500
49,550
49,600
49,650
49,700
49,750
49,800
49,850
49,900
49,950
50,000
¶3701
464
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Tax Table – Continued
If line 43
(taxable
income) is —
At
least
But
less
than
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
50,000
50,000
50,050
50,100
50,150
50,200
50,250
50,300
50,350
50,400
50,450
50,500
50,550
50,600
50,650
50,700
50,750
50,800
50,850
50,900
50,950
50,050
50,100
50,150
50,200
50,250
50,300
50,350
50,400
50,450
50,500
50,550
50,600
50,650
50,700
50,750
50,800
50,850
50,900
50,950
51,000
51,050
51,100
51,150
51,200
51,250
51,300
51,350
51,400
51,450
51,500
51,550
51,600
51,650
51,700
51,750
51,800
51,850
51,900
51,950
52,000
8,694
8,706
8,719
8,731
8,744
8,756
8,769
8,781
8,794
8,806
8,819
8,831
8,844
8,856
8,869
8,881
8,894
8,906
8,919
8,931
6,669
6,676
6,684
6,691
6,699
6,706
6,714
6,721
6,729
6,736
6,744
6,751
6,759
6,766
6,774
6,781
6,789
6,796
6,804
6,811
8,694
8,706
8,719
8,731
8,744
8,756
8,769
8,781
8,794
8,806
8,819
8,831
8,844
8,856
8,869
8,881
8,894
8,906
8,919
8,931
7,359
7,371
7,384
7,396
7,409
7,421
7,434
7,446
7,459
7,471
7,484
7,496
7,509
7,521
7,534
7,546
7,559
7,571
7,584
7,596
53,000
53,050
53,100
53,150
53,200
53,250
53,300
53,350
53,400
53,450
53,500
53,550
53,600
53,650
53,700
53,750
53,800
53,850
53,900
53,950
8,944
8,956
8,969
8,981
8,994
9,006
9,019
9,031
9,044
9,056
9,069
9,081
9,094
9,106
9,119
9,131
9,144
9,156
9,169
9,181
6,819
6,826
6,834
6,841
6,849
6,856
6,864
6,871
6,879
6,886
6,894
6,901
6,909
6,916
6,924
6,931
6,939
6,946
6,954
6,961
8,944
8,956
8,969
8,981
8,994
9,006
9,019
9,031
9,044
9,056
9,069
9,081
9,094
9,106
9,119
9,131
9,144
9,156
9,169
9,181
7,609
7,621
7,634
7,646
7,659
7,671
7,684
7,696
7,709
7,721
7,734
7,746
7,759
7,771
7,784
7,796
7,809
7,821
7,834
7,846
54,000
54,050
54,100
54,150
54,200
54,250
54,300
54,350
54,400
54,450
54,500
54,550
54,600
54,650
54,700
54,750
54,800
54,850
54,900
54,950
¶3701
52,050
52,100
52,150
52,200
52,250
52,300
52,350
52,400
52,450
52,500
52,550
52,600
52,650
52,700
52,750
52,800
52,850
52,900
52,950
53,000
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
53,050
53,100
53,150
53,200
53,250
53,300
53,350
53,400
53,450
53,500
53,550
53,600
53,650
53,700
53,750
53,800
53,850
53,900
53,950
54,000
54,050
54,100
54,150
54,200
54,250
54,300
54,350
54,400
54,450
54,500
54,550
54,600
54,650
54,700
54,750
54,800
54,850
54,900
54,950
55,000
9,444
9,456
9,469
9,481
9,494
9,506
9,519
9,531
9,544
9,556
9,569
9,581
9,594
9,606
9,619
9,631
9,644
9,656
9,669
9,681
7,119
7,126
7,134
7,141
7,149
7,156
7,164
7,171
7,179
7,186
7,194
7,201
7,209
7,216
7,224
7,231
7,239
7,246
7,254
7,261
9,444
9,456
9,469
9,481
9,494
9,506
9,519
9,531
9,544
9,556
9,569
9,581
9,594
9,606
9,619
9,631
9,644
9,656
9,669
9,681
8,109
8,121
8,134
8,146
8,159
8,171
8,184
8,196
8,209
8,221
8,234
8,246
8,259
8,271
8,284
8,296
8,309
8,321
8,334
8,346
56,000
56,050
56,100
56,150
56,200
56,250
56,300
56,350
56,400
56,450
56,500
56,550
56,600
56,650
56,700
56,750
56,800
56,850
56,900
56,950
9,694
9,706
9,719
9,731
9,744
9,756
9,769
9,781
9,794
9,806
9,819
9,831
9,844
9,856
9,869
9,881
9,894
9,906
9,919
9,931
7,269
7,276
7,284
7,291
7,299
7,306
7,314
7,321
7,329
7,336
7,344
7,351
7,359
7,366
7,374
7,381
7,389
7,396
7,404
7,411
9,694
9,706
9,719
9,731
9,744
9,756
9,769
9,781
9,794
9,806
9,819
9,831
9,844
9,856
9,869
9,881
9,894
9,906
9,919
9,931
8,359
8,371
8,384
8,396
8,409
8,421
8,434
8,446
8,459
8,471
8,484
8,496
8,509
8,521
8,534
8,546
8,559
8,571
8,584
8,596
57,000
57,050
57,100
57,150
57,200
57,250
57,300
57,350
57,400
57,450
57,500
57,550
57,600
57,650
57,700
57,750
57,800
57,850
57,900
57,950
6,969
6,976
6,984
6,991
6,999
7,006
7,014
7,021
7,029
7,036
7,044
7,051
7,059
7,066
7,074
7,081
7,089
7,096
7,104
7,111
9,194
9,206
9,219
9,231
9,244
9,256
9,269
9,281
9,294
9,306
9,319
9,331
9,344
9,356
9,369
9,381
9,394
9,406
9,419
9,431
7,859
7,871
7,884
7,896
7,909
7,921
7,934
7,946
7,959
7,971
7,984
7,996
8,009
8,021
8,034
8,046
8,059
8,071
8,084
8,096
55,000
55,050
55,100
55,150
55,200
55,250
55,300
55,350
55,400
55,450
55,500
55,550
55,600
55,650
55,700
55,750
55,800
55,850
55,900
55,950
55,050
55,100
55,150
55,200
55,250
55,300
55,350
55,400
55,450
55,500
55,550
55,600
55,650
55,700
55,750
55,800
55,850
55,900
55,950
56,000
But
less
than
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
56,050
56,100
56,150
56,200
56,250
56,300
56,350
56,400
56,450
56,500
56,550
56,600
56,650
56,700
56,750
56,800
56,850
56,900
56,950
57,000
10,194
10,206
10,219
10,231
10,244
10,256
10,269
10,281
10,294
10,306
10,319
10,331
10,344
10,356
10,369
10,381
10,394
10,406
10,419
10,431
7,569
7,576
7,584
7,591
7,599
7,606
7,614
7,621
7,629
7,636
7,644
7,651
7,659
7,666
7,674
7,681
7,689
7,696
7,704
7,711
10,194
10,206
10,219
10,231
10,244
10,256
10,269
10,281
10,294
10,306
10,319
10,331
10,344
10,356
10,369
10,381
10,394
10,406
10,419
10,431
8,859
8,871
8,884
8,896
8,909
8,921
8,934
8,946
8,959
8,971
8,984
8,996
9,009
9,021
9,034
9,046
9,059
9,071
9,084
9,096
10,444
10,456
10,469
10,481
10,494
10,506
10,519
10,531
10,544
10,556
10,569
10,581
10,594
10,606
10,619
10,631
10,644
10,656
10,669
10,681
7,719
7,726
7,734
7,741
7,749
7,756
7,764
7,771
7,779
7,786
7,794
7,801
7,809
7,816
7,824
7,831
7,839
7,846
7,854
7,861
10,444
10,456
10,469
10,481
10,494
10,506
10,519
10,531
10,544
10,556
10,569
10,581
10,594
10,606
10,619
10,631
10,644
10,656
10,669
10,681
9,109
9,121
9,134
9,146
9,159
9,171
9,184
9,196
9,209
9,221
9,234
9,246
9,259
9,271
9,284
9,296
9,309
9,321
9,334
9,346
10,694
10,706
10,719
10,731
10,744
10,756
10,769
10,781
10,794
10,806
10,819
10,831
10,844
10,856
10,869
10,881
10,894
10,906
10,919
10,931
7,869
7,876
7,884
7,891
7,899
7,906
7,914
7,921
7,929
7,936
7,944
7,951
7,959
7,966
7,974
7,981
7,989
7,996
8,004
8,011
10,694
10,706
10,719
10,731
10,744
10,756
10,769
10,781
10,794
10,806
10,819
10,831
10,844
10,856
10,869
10,881
10,894
10,906
10,919
10,931
9,359
9,371
9,384
9,396
9,409
9,421
9,434
9,446
9,459
9,471
9,484
9,496
9,509
9,521
9,534
9,546
9,559
9,571
9,584
9,596
57,000
55,000
9,194
9,206
9,219
9,231
9,244
9,256
9,269
9,281
9,294
9,306
9,319
9,331
9,344
9,356
9,369
9,381
9,394
9,406
9,419
9,431
At
least
And you are —
56,000
54,000
52,000
52,000
52,050
52,100
52,150
52,200
52,250
52,300
52,350
52,400
52,450
52,500
52,550
52,600
52,650
52,700
52,750
52,800
52,850
52,900
52,950
But
less
than
And you are —
53,000
51,000
51,000
51,050
51,100
51,150
51,200
51,250
51,300
51,350
51,400
51,450
51,500
51,550
51,600
51,650
51,700
51,750
51,800
51,850
51,900
51,950
At
least
If line 43
(taxable
income) is —
57,050
57,100
57,150
57,200
57,250
57,300
57,350
57,400
57,450
57,500
57,550
57,600
57,650
57,700
57,750
57,800
57,850
57,900
57,950
58,000
58,000
9,944
9,956
9,969
9,981
9,994
10,006
10,019
10,031
10,044
10,056
10,069
10,081
10,094
10,106
10,119
10,131
10,144
10,156
10,169
10,181
7,419
7,426
7,434
7,441
7,449
7,456
7,464
7,471
7,479
7,486
7,494
7,501
7,509
7,516
7,524
7,531
7,539
7,546
7,554
7,561
9,944
9,956
9,969
9,981
9,994
10,006
10,019
10,031
10,044
10,056
10,069
10,081
10,094
10,106
10,119
10,131
10,144
10,156
10,169
10,181
8,609
8,621
8,634
8,646
8,659
8,671
8,684
8,696
8,709
8,721
8,734
8,746
8,759
8,771
8,784
8,796
8,809
8,821
8,834
8,846
58,000
58,050
58,100
58,150
58,200
58,250
58,300
58,350
58,400
58,450
58,500
58,550
58,600
58,650
58,700
58,750
58,800
58,850
58,900
58,950
58,050
58,100
58,150
58,200
58,250
58,300
58,350
58,400
58,450
58,500
58,550
58,600
58,650
58,700
58,750
58,800
58,850
58,900
58,950
59,000
A P P E N D I X B — Ta x Ta b l e a n d R a t e S c h e d u l e s
465
2009 Tax Table – Continued
If line 43
(taxable
income) is —
At
least
But
less
than
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
59,000
59,000
59,050
59,100
59,150
59,200
59,250
59,300
59,350
59,400
59,450
59,500
59,550
59,600
59,650
59,700
59,750
59,800
59,850
59,900
59,950
59,050
59,100
59,150
59,200
59,250
59,300
59,350
59,400
59,450
59,500
59,550
59,600
59,650
59,700
59,750
59,800
59,850
59,900
59,950
60,000
60,050
60,100
60,150
60,200
60,250
60,300
60,350
60,400
60,450
60,500
60,550
60,600
60,650
60,700
60,750
60,800
60,850
60,900
60,950
61,000
10,944
10,956
10,969
10,981
10,994
11,006
11,019
11,031
11,044
11,056
11,069
11,081
11,094
11,106
11,119
11,131
11,144
11,156
11,169
11,181
8,019
8,026
8,034
8,041
8,049
8,056
8,064
8,071
8,079
8,086
8,094
8,101
8,109
8,116
8,124
8,131
8,139
8,146
8,154
8,161
10,944
10,956
10,969
10,981
10,994
11,006
11,019
11,031
11,044
11,056
11,069
11,081
11,094
11,106
11,119
11,131
11,144
11,156
11,169
11,181
9,609
9,621
9,634
9,646
9,659
9,671
9,684
9,696
9,709
9,721
9,734
9,746
9,759
9,771
9,784
9,796
9,809
9,821
9,834
9,846
62,000
62,050
62,100
62,150
62,200
62,250
62,300
62,350
62,400
62,450
62,500
62,550
62,600
62,650
62,700
62,750
62,800
62,850
62,900
62,950
11,194
11,206
11,219
11,231
11,244
11,256
11,269
11,281
11,294
11,306
11,319
11,331
11,344
11,356
11,369
11,381
11,394
11,406
11,419
11,431
8,169
8,176
8,184
8,191
8,199
8,206
8,214
8,221
8,229
8,236
8,244
8,251
8,259
8,266
8,274
8,281
8,289
8,296
8,304
8,311
11,194
11,206
11,219
11,231
11,244
11,256
11,269
11,281
11,294
11,306
11,319
11,331
11,344
11,356
11,369
11,381
11,394
11,406
11,419
11,431
9,859
9,871
9,884
9,896
9,909
9,921
9,934
9,946
9,959
9,971
9,984
9,996
10,009
10,021
10,034
10,046
10,059
10,071
10,084
10,096
63,000
63,050
63,100
63,150
63,200
63,250
63,300
63,350
63,400
63,450
63,500
63,550
63,600
63,650
63,700
63,750
63,800
63,850
63,900
63,950
61,050
61,100
61,150
61,200
61,250
61,300
61,350
61,400
61,450
61,500
61,550
61,600
61,650
61,700
61,750
61,800
61,850
61,900
61,950
62,000
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
62,050
62,100
62,150
62,200
62,250
62,300
62,350
62,400
62,450
62,500
62,550
62,600
62,650
62,700
62,750
62,800
62,850
62,900
62,950
63,000
63,050
63,100
63,150
63,200
63,250
63,300
63,350
63,400
63,450
63,500
63,550
63,600
63,650
63,700
63,750
63,800
63,850
63,900
63,950
64,000
11,694
11,706
11,719
11,731
11,744
11,756
11,769
11,781
11,794
11,806
11,819
11,831
11,844
11,856
11,869
11,881
11,894
11,906
11,919
11,931
8,469
8,476
8,484
8,491
8,499
8,506
8,514
8,521
8,529
8,536
8,544
8,551
8,559
8,566
8,574
8,581
8,589
8,596
8,604
8,611
11,694
11,706
11,719
11,731
11,744
11,756
11,769
11,781
11,794
11,806
11,819
11,831
11,844
11,856
11,869
11,881
11,894
11,906
11,919
11,931
10,359
10,371
10,384
10,396
10,409
10,421
10,434
10,446
10,459
10,471
10,484
10,496
10,509
10,521
10,534
10,546
10,559
10,571
10,584
10,596
65,000
65,050
65,100
65,150
65,200
65,250
65,300
65,350
65,400
65,450
65,500
65,550
65,600
65,650
65,700
65,750
65,800
65,850
65,900
65,950
11,944
11,956
11,969
11,981
11,994
12,006
12,019
12,031
12,044
12,056
12,069
12,081
12,094
12,106
12,119
12,131
12,144
12,156
12,169
12,181
8,619
8,626
8,634
8,641
8,649
8,656
8,664
8,671
8,679
8,686
8,694
8,701
8,709
8,716
8,724
8,731
8,739
8,746
8,754
8,761
11,944
11,956
11,969
11,981
11,994
12,006
12,019
12,031
12,044
12,056
12,069
12,081
12,094
12,106
12,119
12,131
12,144
12,156
12,169
12,181
10,609
10,621
10,634
10,646
10,659
10,671
10,684
10,696
10,709
10,721
10,734
10,746
10,759
10,771
10,784
10,796
10,809
10,821
10,834
10,846
66,000
66,050
66,100
66,150
66,200
66,250
66,300
66,350
66,400
66,450
66,500
66,550
66,600
66,650
66,700
66,750
66,800
66,850
66,900
66,950
8,319
8,326
8,334
8,341
8,349
8,356
8,364
8,371
8,379
8,386
8,394
8,401
8,409
8,416
8,424
8,431
8,439
8,446
8,454
8,461
11,444
11,456
11,469
11,481
11,494
11,506
11,519
11,531
11,544
11,556
11,569
11,581
11,594
11,606
11,619
11,631
11,644
11,656
11,669
11,681
10,109
10,121
10,134
10,146
10,159
10,171
10,184
10,196
10,209
10,221
10,234
10,246
10,259
10,271
10,284
10,296
10,309
10,321
10,334
10,346
64,000
64,050
64,100
64,150
64,200
64,250
64,300
64,350
64,400
64,450
64,500
64,550
64,600
64,650
64,700
64,750
64,800
64,850
64,900
64,950
64,050
64,100
64,150
64,200
64,250
64,300
64,350
64,400
64,450
64,500
64,550
64,600
64,650
64,700
64,750
64,800
64,850
64,900
64,950
65,000
But
less
than
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
65,050
65,100
65,150
65,200
65,250
65,300
65,350
65,400
65,450
65,500
65,550
65,600
65,650
65,700
65,750
65,800
65,850
65,900
65,950
66,000
12,444
12,456
12,469
12,481
12,494
12,506
12,519
12,531
12,544
12,556
12,569
12,581
12,594
12,606
12,619
12,631
12,644
12,656
12,669
12,681
8,919
8,926
8,934
8,941
8,949
8,956
8,964
8,971
8,979
8,986
8,994
9,001
9,009
9,016
9,024
9,031
9,039
9,046
9,054
9,061
12,444
12,456
12,469
12,481
12,494
12,506
12,519
12,531
12,544
12,556
12,569
12,581
12,594
12,606
12,619
12,631
12,644
12,656
12,669
12,681
11,109
11,121
11,134
11,146
11,159
11,171
11,184
11,196
11,209
11,221
11,234
11,246
11,259
11,271
11,284
11,296
11,309
11,321
11,334
11,346
12,694
12,706
12,719
12,731
12,744
12,756
12,769
12,781
12,794
12,806
12,819
12,831
12,844
12,856
12,869
12,881
12,894
12,906
12,919
12,931
9,069
9,076
9,084
9,091
9,099
9,106
9,114
9,121
9,129
9,136
9,144
9,151
9,159
9,166
9,174
9,181
9,189
9,196
9,204
9,211
12,694
12,706
12,719
12,731
12,744
12,756
12,769
12,781
12,794
12,806
12,819
12,831
12,844
12,856
12,869
12,881
12,894
12,906
12,919
12,931
11,359
11,371
11,384
11,396
11,409
11,421
11,434
11,446
11,459
11,471
11,484
11,496
11,509
11,521
11,534
11,546
11,559
11,571
11,584
11,596
12,944
12,956
12,969
12,981
12,994
13,006
13,019
13,031
13,044
13,056
13,069
13,081
13,094
13,106
13,119
13,131
13,144
13,156
13,169
13,181
9,219
9,226
9,234
9,241
9,249
9,256
9,264
9,271
9,279
9,286
9,294
9,301
9,309
9,316
9,324
9,331
9,339
9,346
9,356
9,369
12,944
12,956
12,969
12,981
12,994
13,006
13,019
13,031
13,044
13,056
13,069
13,081
13,094
13,106
13,119
13,131
13,144
13,156
13,169
13,181
11,609
11,621
11,634
11,646
11,659
11,671
11,684
11,696
11,709
11,721
11,734
11,746
11,759
11,771
11,784
11,796
11,809
11,821
11,834
11,846
66,000
64,000
11,444
11,456
11,469
11,481
11,494
11,506
11,519
11,531
11,544
11,556
11,569
11,581
11,594
11,606
11,619
11,631
11,644
11,656
11,669
11,681
At
least
And you are —
65,000
63,000
61,000
61,000
61,050
61,100
61,150
61,200
61,250
61,300
61,350
61,400
61,450
61,500
61,550
61,600
61,650
61,700
61,750
61,800
61,850
61,900
61,950
But
less
than
62,000
60,000
60,000
60,050
60,100
60,150
60,200
60,250
60,300
60,350
60,400
60,450
60,500
60,550
60,600
60,650
60,700
60,750
60,800
60,850
60,900
60,950
At
least
If line 43
(taxable
income) is —
And you are —
66,050
66,100
66,150
66,200
66,250
66,300
66,350
66,400
66,450
66,500
66,550
66,600
66,650
66,700
66,750
66,800
66,850
66,900
66,950
67,000
67,000
12,194
12,206
12,219
12,231
12,244
12,256
12,269
12,281
12,294
12,306
12,319
12,331
12,344
12,356
12,369
12,381
12,394
12,406
12,419
12,431
8,769
8,776
8,784
8,791
8,799
8,806
8,814
8,821
8,829
8,836
8,844
8,851
8,859
8,866
8,874
8,881
8,889
8,896
8,904
8,911
12,194
12,206
12,219
12,231
12,244
12,256
12,269
12,281
12,294
12,306
12,319
12,331
12,344
12,356
12,369
12,381
12,394
12,406
12,419
12,431
10,859
10,871
10,884
10,896
10,909
10,921
10,934
10,946
10,959
10,971
10,984
10,996
11,009
11,021
11,034
11,046
11,059
11,071
11,084
11,096
67,000
67,050
67,100
67,150
67,200
67,250
67,300
67,350
67,400
67,450
67,500
67,550
67,600
67,650
67,700
67,750
67,800
67,850
67,900
67,950
67,050
67,100
67,150
67,200
67,250
67,300
67,350
67,400
67,450
67,500
67,550
67,600
67,650
67,700
67,750
67,800
67,850
67,900
67,950
68,000
¶3701
466
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Tax Table – Continued
If line 43
(taxable
income) is —
At
least
But
less
than
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
68,000
68,000
68,050
68,100
68,150
68,200
68,250
68,300
68,350
68,400
68,450
68,500
68,550
68,600
68,650
68,700
68,750
68,800
68,850
68,900
68,950
68,050
68,100
68,150
68,200
68,250
68,300
68,350
68,400
68,450
68,500
68,550
68,600
68,650
68,700
68,750
68,800
68,850
68,900
68,950
69,000
69,050
69,100
69,150
69,200
69,250
69,300
69,350
69,400
69,450
69,500
69,550
69,600
69,650
69,700
69,750
69,800
69,850
69,900
69,950
70,000
13,194
13,206
13,219
13,231
13,244
13,256
13,269
13,281
13,294
13,306
13,319
13,331
13,344
13,356
13,369
13,381
13,394
13,406
13,419
13,431
9,381
9,394
9,406
9,419
9,431
9,444
9,456
9,469
9,481
9,494
9,506
9,519
9,531
9,544
9,556
9,569
9,581
9,594
9,606
9,619
13,194
13,206
13,219
13,231
13,244
13,256
13,269
13,281
13,294
13,306
13,319
13,333
13,347
13,361
13,375
13,389
13,403
13,417
13,431
13,445
11,859
11,871
11,884
11,896
11,909
11,921
11,934
11,946
11,959
11,971
11,984
11,996
12,009
12,021
12,034
12,046
12,059
12,071
12,084
12,096
¶3701
70,050
70,100
70,150
70,200
70,250
70,300
70,350
70,400
70,450
70,500
70,550
70,600
70,650
70,700
70,750
70,800
70,850
70,900
70,950
71,000
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
71,000
71,050
71,100
71,150
71,200
71,250
71,300
71,350
71,400
71,450
71,500
71,550
71,600
71,650
71,700
71,750
71,800
71,850
71,900
71,950
71,050
71,100
71,150
71,200
71,250
71,300
71,350
71,400
71,450
71,500
71,550
71,600
71,650
71,700
71,750
71,800
71,850
71,900
71,950
72,000
13,444
13,456
13,469
13,481
13,494
13,506
13,519
13,531
13,544
13,556
13,569
13,581
13,594
13,606
13,619
13,631
13,644
13,656
13,669
13,681
9,631
9,644
9,656
9,669
9,681
9,694
9,706
9,719
9,731
9,744
9,756
9,769
9,781
9,794
9,806
9,819
9,831
9,844
9,856
9,869
13,459
13,473
13,487
13,501
13,515
13,529
13,543
13,557
13,571
13,585
13,599
13,613
13,627
13,641
13,655
13,669
13,683
13,697
13,711
13,725
12,109
12,121
12,134
12,146
12,159
12,171
12,184
12,196
12,209
12,221
12,234
12,246
12,259
12,271
12,284
12,296
12,309
12,321
12,334
12,346
72,000
72,050
72,100
72,150
72,200
72,250
72,300
72,350
72,400
72,450
72,500
72,550
72,600
72,650
72,700
72,750
72,800
72,850
72,900
72,950
13,694
13,706
13,719
13,731
13,744
13,756
13,769
13,781
13,794
13,806
13,819
13,831
13,844
13,856
13,869
13,881
13,894
13,906
13,919
13,931
9,881
9,894
9,906
9,919
9,931
9,944
9,956
9,969
9,981
9,994
10,006
10,019
10,031
10,044
10,056
10,069
10,081
10,094
10,106
10,119
13,739
13,753
13,767
13,781
13,795
13,809
13,823
13,837
13,851
13,865
13,879
13,893
13,907
13,921
13,935
13,949
13,963
13,977
13,991
14,005
12,359
12,371
12,384
12,396
12,409
12,421
12,434
12,446
12,459
12,471
12,484
12,496
12,509
12,521
12,534
12,546
12,559
12,571
12,584
12,596
73,000
73,050
73,100
73,150
73,200
73,250
73,300
73,350
73,400
73,450
73,500
73,550
73,600
73,650
73,700
73,750
73,800
73,850
73,900
73,950
72,050
72,100
72,150
72,200
72,250
72,300
72,350
72,400
72,450
72,500
72,550
72,600
72,650
72,700
72,750
72,800
72,850
72,900
72,950
73,000
13,944
13,956
13,969
13,981
13,994
14,006
14,019
14,031
14,044
14,056
14,069
14,081
14,094
14,106
14,119
14,131
14,144
14,156
14,169
14,181
10,131
10,144
10,156
10,169
10,181
10,194
10,206
10,219
10,231
10,244
10,256
10,269
10,281
10,294
10,306
10,319
10,331
10,344
10,356
10,369
14,019
14,033
14,047
14,061
14,075
14,089
14,103
14,117
14,131
14,145
14,159
14,173
14,187
14,201
14,215
14,229
14,243
14,257
14,271
14,285
12,609
12,621
12,634
12,646
12,659
12,671
12,684
12,696
12,709
12,721
12,734
12,746
12,759
12,771
12,784
12,796
12,809
12,821
12,834
12,846
But
less
than
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
74,000
74,050
74,100
74,150
74,200
74,250
74,300
74,350
74,400
74,450
74,500
74,550
74,600
74,650
74,700
74,750
74,800
74,850
74,900
74,950
74,050
74,100
74,150
74,200
74,250
74,300
74,350
74,400
74,450
74,500
74,550
74,600
74,650
74,700
74,750
74,800
74,850
74,900
74,950
75,000
14,694
14,706
14,719
14,731
14,744
14,756
14,769
14,781
14,794
14,806
14,819
14,831
14,844
14,856
14,869
14,881
14,894
14,906
14,919
14,931
10,881
10,894
10,906
10,919
10,931
10,944
10,956
10,969
10,981
10,994
11,006
11,019
11,031
11,044
11,056
11,069
11,081
11,094
11,106
11,119
14,859
14,873
14,887
14,901
14,915
14,929
14,943
14,957
14,971
14,985
14,999
15,013
15,027
15,041
15,055
15,069
15,083
15,097
15,111
15,125
13,359
13,371
13,384
13,396
13,409
13,421
13,434
13,446
13,459
13,471
13,484
13,496
13,509
13,521
13,534
13,546
13,559
13,571
13,584
13,596
14,944
14,956
14,969
14,981
14,994
15,006
15,019
15,031
15,044
15,056
15,069
15,081
15,094
15,106
15,119
15,131
15,144
15,156
15,169
15,181
11,131
11,144
11,156
11,169
11,181
11,194
11,206
11,219
11,231
11,244
11,256
11,269
11,281
11,294
11,306
11,319
11,331
11,344
11,356
11,369
15,139
15,153
15,167
15,181
15,195
15,209
15,223
15,237
15,251
15,265
15,279
15,293
15,307
15,321
15,335
15,349
15,363
15,377
15,391
15,405
13,609
13,621
13,634
13,646
13,659
13,671
13,684
13,696
13,709
13,721
13,734
13,746
13,759
13,771
13,784
13,796
13,809
13,821
13,834
13,846
15,194
15,206
15,219
15,231
15,244
15,256
15,269
15,281
15,294
15,306
15,319
15,331
15,344
15,356
15,369
15,381
15,394
15,406
15,419
15,431
11,381
11,394
11,406
11,419
11,431
11,444
11,456
11,469
11,481
11,494
11,506
11,519
11,531
11,544
11,556
11,569
11,581
11,594
11,606
11,619
15,419
15,433
15,447
15,461
15,475
15,489
15,503
15,517
15,531
15,545
15,559
15,573
15,587
15,601
15,615
15,629
15,643
15,657
15,671
15,685
13,859
13,871
13,884
13,896
13,909
13,921
13,934
13,946
13,959
13,971
13,984
13,996
14,009
14,021
14,034
14,046
14,059
14,071
14,084
14,096
75,000
14,194
14,206
14,219
14,231
14,244
14,256
14,269
14,281
14,294
14,306
14,319
14,331
14,344
14,356
14,369
14,381
14,394
14,406
14,419
14,431
10,381
10,394
10,406
10,419
10,431
10,444
10,456
10,469
10,481
10,494
10,506
10,519
10,531
10,544
10,556
10,569
10,581
10,594
10,606
10,619
14,299
14,313
14,327
14,341
14,355
14,369
14,383
14,397
14,411
14,425
14,439
14,453
14,467
14,481
14,495
14,509
14,523
14,537
14,551
14,565
12,859
12,871
12,884
12,896
12,909
12,921
12,934
12,946
12,959
12,971
12,984
12,996
13,009
13,021
13,034
13,046
13,059
13,071
13,084
13,096
75,000
75,050
75,100
75,150
75,200
75,250
75,300
75,350
75,400
75,450
75,500
75,550
75,600
75,650
75,700
75,750
75,800
75,850
75,900
75,950
14,444
14,456
14,469
14,481
14,494
14,506
14,519
14,531
14,544
14,556
14,569
14,581
14,594
14,606
14,619
14,631
14,644
14,656
14,669
14,681
10,631
10,644
10,656
10,669
10,681
10,694
10,706
10,719
10,731
10,744
10,756
10,769
10,781
10,794
10,806
10,819
10,831
10,844
10,856
10,869
14,579
14,593
14,607
14,621
14,635
14,649
14,663
14,677
14,691
14,705
14,719
14,733
14,747
14,761
14,775
14,789
14,803
14,817
14,831
14,845
13,109
13,121
13,134
13,146
13,159
13,171
13,184
13,196
13,209
13,221
13,234
13,246
13,259
13,271
13,284
13,296
13,309
13,321
13,334
13,346
76,000
76,050
76,100
76,150
76,200
76,250
76,300
76,350
76,400
76,450
76,500
76,550
76,600
76,650
76,700
76,750
76,800
76,850
76,900
76,950
73,000
73,050
73,100
73,150
73,200
73,250
73,300
73,350
73,400
73,450
73,500
73,550
73,600
73,650
73,700
73,750
73,800
73,850
73,900
73,950
74,000
At
least
And you are —
74,000
72,000
70,000
70,000
70,050
70,100
70,150
70,200
70,250
70,300
70,350
70,400
70,450
70,500
70,550
70,600
70,650
70,700
70,750
70,800
70,850
70,900
70,950
But
less
than
And you are —
71,000
69,000
69,000
69,050
69,100
69,150
69,200
69,250
69,300
69,350
69,400
69,450
69,500
69,550
69,600
69,650
69,700
69,750
69,800
69,850
69,900
69,950
At
least
If line 43
(taxable
income) is —
75,050
75,100
75,150
75,200
75,250
75,300
75,350
75,400
75,450
75,500
75,550
75,600
75,650
75,700
75,750
75,800
75,850
75,900
75,950
76,000
76,000
76,050
76,100
76,150
76,200
76,250
76,300
76,350
76,400
76,450
76,500
76,550
76,600
76,650
76,700
76,750
76,800
76,850
76,900
76,950
77,000
A P P E N D I X B — Ta x Ta b l e a n d R a t e S c h e d u l e s
467
2009 Tax Table – Continued
If line 43
(taxable
income) is —
At
least
But
less
than
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
At
least
15,444
15,456
15,469
15,481
15,494
15,506
15,519
15,531
15,544
15,556
15,569
15,581
15,594
15,606
15,619
15,631
15,644
15,656
15,669
15,681
11,631
11,644
11,656
11,669
11,681
11,694
11,706
11,719
11,731
11,744
11,756
11,769
11,781
11,794
11,806
11,819
11,831
11,844
11,856
11,869
15,699
15,713
15,727
15,741
15,755
15,769
15,783
15,797
15,811
15,825
15,839
15,853
15,867
15,881
15,895
15,909
15,923
15,937
15,951
15,965
14,109
14,121
14,134
14,146
14,159
14,171
14,184
14,196
14,209
14,221
14,234
14,246
14,259
14,271
14,284
14,296
14,309
14,321
14,334
14,346
80,000
80,050
80,100
80,150
80,200
80,250
80,300
80,350
80,400
80,450
80,500
80,550
80,600
80,650
80,700
80,750
80,800
80,850
80,900
80,950
15,694
15,706
15,719
15,731
15,744
15,756
15,769
15,781
15,794
15,806
15,819
15,831
15,844
15,856
15,869
15,881
15,894
15,906
15,919
15,931
11,881
11,894
11,906
11,919
11,931
11,944
11,956
11,969
11,981
11,994
12,006
12,019
12,031
12,044
12,056
12,069
12,081
12,094
12,106
12,119
15,979
15,993
16,007
16,021
16,035
16,049
16,063
16,077
16,091
16,105
16,119
16,133
16,147
16,161
16,175
16,189
16,203
16,217
16,231
16,245
14,359
14,371
14,384
14,396
14,409
14,421
14,434
14,446
14,459
14,471
14,484
14,496
14,509
14,521
14,534
14,546
14,559
14,571
14,584
14,596
81,000
81,050
81,100
81,150
81,200
81,250
81,300
81,350
81,400
81,450
81,500
81,550
81,600
81,650
81,700
81,750
81,800
81,850
81,900
81,950
15,944
15,956
15,969
15,981
15,994
16,006
16,019
16,031
16,044
16,056
16,069
16,081
16,094
16,106
16,119
16,131
16,144
16,156
16,169
16,181
12,131
12,144
12,156
12,169
12,181
12,194
12,206
12,219
12,231
12,244
12,256
12,269
12,281
12,294
12,306
12,319
12,331
12,344
12,356
12,369
16,259
16,273
16,287
16,301
16,315
16,329
16,343
16,357
16,371
16,385
16,399
16,413
16,427
16,441
16,455
16,469
16,483
16,497
16,511
16,525
14,609
14,621
14,634
14,646
14,659
14,671
14,684
14,696
14,709
14,721
14,734
14,746
14,759
14,771
14,784
14,796
14,809
14,821
14,834
14,846
82,000
82,050
82,100
82,150
82,200
82,250
82,300
82,350
82,400
82,450
82,500
82,550
82,600
82,650
82,700
82,750
82,800
82,850
82,900
82,950
77,000
77,000
77,050
77,100
77,150
77,200
77,250
77,300
77,350
77,400
77,450
77,500
77,550
77,600
77,650
77,700
77,750
77,800
77,850
77,900
77,950
77,050
77,100
77,150
77,200
77,250
77,300
77,350
77,400
77,450
77,500
77,550
77,600
77,650
77,700
77,750
77,800
77,850
77,900
77,950
78,000
78,050
78,100
78,150
78,200
78,250
78,300
78,350
78,400
78,450
78,500
78,550
78,600
78,650
78,700
78,750
78,800
78,850
78,900
78,950
79,000
79,050
79,100
79,150
79,200
79,250
79,300
79,350
79,400
79,450
79,500
79,550
79,600
79,650
79,700
79,750
79,800
79,850
79,900
79,950
80,000
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
At
least
80,050
80,100
80,150
80,200
80,250
80,300
80,350
80,400
80,450
80,500
80,550
80,600
80,650
80,700
80,750
80,800
80,850
80,900
80,950
81,000
16,194
16,206
16,219
16,231
16,244
16,256
16,269
16,281
16,294
16,306
16,319
16,331
16,344
16,356
16,369
16,381
16,394
16,406
16,419
16,431
12,381
12,394
12,406
12,419
12,431
12,444
12,456
12,469
12,481
12,494
12,506
12,519
12,531
12,544
12,556
12,569
12,581
12,594
12,606
12,619
16,539
16,553
16,567
16,581
16,595
16,609
16,623
16,637
16,651
16,665
16,679
16,693
16,707
16,721
16,735
16,749
16,763
16,777
16,791
16,805
14,859
14,871
14,884
14,896
14,909
14,921
14,934
14,946
14,959
14,971
14,984
14,996
15,009
15,021
15,034
15,046
15,059
15,071
15,084
15,096
83,000
83,050
83,100
83,150
83,200
83,250
83,300
83,350
83,400
83,450
83,500
83,550
83,600
83,650
83,700
83,750
83,800
83,850
83,900
83,950
81,050
81,100
81,150
81,200
81,250
81,300
81,350
81,400
81,450
81,500
81,550
81,600
81,650
81,700
81,750
81,800
81,850
81,900
81,950
82,000
16,444
16,456
16,469
16,481
16,494
16,506
16,519
16,531
16,544
16,556
16,569
16,581
16,594
16,606
16,619
16,631
16,644
16,656
16,669
16,681
12,631
12,644
12,656
12,669
12,681
12,694
12,706
12,719
12,731
12,744
12,756
12,769
12,781
12,794
12,806
12,819
12,831
12,844
12,856
12,869
16,819
16,833
16,847
16,861
16,875
16,889
16,903
16,917
16,931
16,945
16,959
16,973
16,987
17,001
17,015
17,029
17,043
17,057
17,071
17,085
15,109
15,121
15,134
15,146
15,159
15,171
15,184
15,196
15,209
15,221
15,234
15,246
15,259
15,271
15,284
15,296
15,309
15,321
15,334
15,346
84,000
84,050
84,100
84,150
84,200
84,250
84,300
84,350
84,400
84,450
84,500
84,550
84,600
84,650
84,700
84,750
84,800
84,850
84,900
84,950
16,694
16,706
16,719
16,731
16,744
16,757
16,771
16,785
16,799
16,813
16,827
16,841
16,855
16,869
16,883
16,897
16,911
16,925
16,939
16,953
12,881
12,894
12,906
12,919
12,931
12,944
12,956
12,969
12,981
12,994
13,006
13,019
13,031
13,044
13,056
13,069
13,081
13,094
13,106
13,119
17,099
17,113
17,127
17,141
17,155
17,169
17,183
17,197
17,211
17,225
17,239
17,253
17,267
17,281
17,295
17,309
17,323
17,337
17,351
17,365
15,359
15,371
15,384
15,396
15,409
15,421
15,434
15,446
15,459
15,471
15,484
15,496
15,509
15,521
15,534
15,546
15,559
15,571
15,584
15,596
85,000
85,050
85,100
85,150
85,200
85,250
85,300
85,350
85,400
85,450
85,500
85,550
85,600
85,650
85,700
85,750
85,800
85,850
85,900
85,950
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
83,050
83,100
83,150
83,200
83,250
83,300
83,350
83,400
83,450
83,500
83,550
83,600
83,650
83,700
83,750
83,800
83,850
83,900
83,950
84,000
16,967
16,981
16,995
17,009
17,023
17,037
17,051
17,065
17,079
17,093
17,107
17,121
17,135
17,149
17,163
17,177
17,191
17,205
17,219
17,233
13,131
13,144
13,156
13,169
13,181
13,194
13,206
13,219
13,231
13,244
13,256
13,269
13,281
13,294
13,306
13,319
13,331
13,344
13,356
13,369
17,379
17,393
17,407
17,421
17,435
17,449
17,463
17,477
17,491
17,505
17,519
17,533
17,547
17,561
17,575
17,589
17,603
17,617
17,631
17,645
15,609
15,621
15,634
15,646
15,659
15,671
15,684
15,696
15,709
15,721
15,734
15,746
15,759
15,771
15,784
15,796
15,809
15,821
15,834
15,846
17,247
17,261
17,275
17,289
17,303
17,317
17,331
17,345
17,359
17,373
17,387
17,401
17,415
17,429
17,443
17,457
17,471
17,485
17,499
17,513
13,381
13,394
13,406
13,419
13,431
13,444
13,456
13,469
13,481
13,494
13,506
13,519
13,531
13,544
13,556
13,569
13,581
13,594
13,606
13,619
17,659
17,673
17,687
17,701
17,715
17,729
17,743
17,757
17,771
17,785
17,799
17,813
17,827
17,841
17,855
17,869
17,883
17,897
17,911
17,925
15,859
15,871
15,884
15,896
15,909
15,921
15,934
15,946
15,959
15,971
15,984
15,996
16,009
16,021
16,034
16,046
16,059
16,071
16,084
16,096
17,527
17,541
17,555
17,569
17,583
17,597
17,611
17,625
17,639
17,653
17,667
17,681
17,695
17,709
17,723
17,737
17,751
17,765
17,779
17,793
13,631
13,644
13,656
13,669
13,681
13,694
13,706
13,719
13,731
13,744
13,756
13,769
13,781
13,794
13,806
13,819
13,831
13,844
13,856
13,869
17,939
17,953
17,967
17,981
17,995
18,009
18,023
18,037
18,051
18,065
18,079
18,093
18,107
18,121
18,135
18,149
18,163
18,177
18,191
18,205
16,109
16,121
16,134
16,146
16,159
16,171
16,184
16,196
16,209
16,221
16,234
16,246
16,259
16,271
16,284
16,296
16,309
16,321
16,334
16,346
84,000
82,000
82,050
82,100
82,150
82,200
82,250
82,300
82,350
82,400
82,450
82,500
82,550
82,600
82,650
82,700
82,750
82,800
82,850
82,900
82,950
83,000
But
less
than
And you are —
83,000
81,000
79,000
79,000
79,050
79,100
79,150
79,200
79,250
79,300
79,350
79,400
79,450
79,500
79,550
79,600
79,650
79,700
79,750
79,800
79,850
79,900
79,950
Single
80,000
78,000
78,000
78,050
78,100
78,150
78,200
78,250
78,300
78,350
78,400
78,450
78,500
78,550
78,600
78,650
78,700
78,750
78,800
78,850
78,900
78,950
But
less
than
If line 43
(taxable
income) is —
And you are —
84,050
84,100
84,150
84,200
84,250
84,300
84,350
84,400
84,450
84,500
84,550
84,600
84,650
84,700
84,750
84,800
84,850
84,900
84,950
85,000
85,000
85,050
85,100
85,150
85,200
85,250
85,300
85,350
85,400
85,450
85,500
85,550
85,600
85,650
85,700
85,750
85,800
85,850
85,900
85,950
86,000
¶3701
468
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
2009 Tax Table – Continued
If line 43
(taxable
income) is —
At
least
But
less
than
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
At
least
17,807
17,821
17,835
17,849
17,863
17,877
17,891
17,905
17,919
17,933
17,947
17,961
17,975
17,989
18,003
18,017
18,031
18,045
18,059
18,073
13,881
13,894
13,906
13,919
13,931
13,944
13,956
13,969
13,981
13,994
14,006
14,019
14,031
14,044
14,056
14,069
14,081
14,094
14,106
14,119
18,219
18,233
18,247
18,261
18,275
18,289
18,303
18,317
18,331
18,345
18,359
18,373
18,387
18,401
18,415
18,429
18,443
18,457
18,471
18,485
16,359
16,371
16,384
16,396
16,409
16,421
16,434
16,446
16,459
16,471
16,484
16,496
16,509
16,521
16,534
16,546
16,559
16,571
16,584
16,596
89,000
89,050
89,100
89,150
89,200
89,250
89,300
89,350
89,400
89,450
89,500
89,550
89,600
89,650
89,700
89,750
89,800
89,850
89,900
89,950
18,087
18,101
18,115
18,129
18,143
18,157
18,171
18,185
18,199
18,213
18,227
18,241
18,255
18,269
18,283
18,297
18,311
18,325
18,339
18,353
14,131
14,144
14,156
14,169
14,181
14,194
14,206
14,219
14,231
14,244
14,256
14,269
14,281
14,294
14,306
14,319
14,331
14,344
14,356
14,369
18,499
18,513
18,527
18,541
18,555
18,569
18,583
18,597
18,611
18,625
18,639
18,653
18,667
18,681
18,695
18,709
18,723
18,737
18,751
18,765
16,609
16,621
16,634
16,646
16,659
16,671
16,684
16,696
16,709
16,721
16,734
16,746
16,759
16,771
16,784
16,796
16,809
16,821
16,834
16,846
90,000
90,050
90,100
90,150
90,200
90,250
90,300
90,350
90,400
90,450
90,500
90,550
90,600
90,650
90,700
90,750
90,800
90,850
90,900
90,950
18,367
18,381
18,395
18,409
18,423
18,437
18,451
18,465
18,479
18,493
18,507
18,521
18,535
18,549
18,563
18,577
18,591
18,605
18,619
18,633
14,381
14,394
14,406
14,419
14,431
14,444
14,456
14,469
14,481
14,494
14,506
14,519
14,531
14,544
14,556
14,569
14,581
14,594
14,606
14,619
18,779
18,793
18,807
18,821
18,835
18,849
18,863
18,877
18,891
18,905
18,919
18,933
18,947
18,961
18,975
18,989
19,003
19,017
19,031
19,045
16,859
16,871
16,884
16,896
16,909
16,921
16,934
16,946
16,959
16,971
16,984
16,996
17,009
17,021
17,034
17,046
17,059
17,071
17,084
17,096
91,000
91,050
91,100
91,150
91,200
91,250
91,300
91,350
91,400
91,450
91,500
91,550
91,600
91,650
91,700
91,750
91,800
91,850
91,900
91,950
86,000
86,000
86,050
86,100
86,150
86,200
86,250
86,300
86,350
86,400
86,450
86,500
86,550
86,600
86,650
86,700
86,750
86,800
86,850
86,900
86,950
86,050
86,100
86,150
86,200
86,250
86,300
86,350
86,400
86,450
86,500
86,550
86,600
86,650
86,700
86,750
86,800
86,850
86,900
86,950
87,000
87,050
87,100
87,150
87,200
87,250
87,300
87,350
87,400
87,450
87,500
87,550
87,600
87,650
87,700
87,750
87,800
87,850
87,900
87,950
88,000
¶3701
88,050
88,100
88,150
88,200
88,250
88,300
88,350
88,400
88,450
88,500
88,550
88,600
88,650
88,700
88,750
88,800
88,850
88,900
88,950
89,000
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
At
least
89,050
89,100
89,150
89,200
89,250
89,300
89,350
89,400
89,450
89,500
89,550
89,600
89,650
89,700
89,750
89,800
89,850
89,900
89,950
90,000
18,647
18,661
18,675
18,689
18,703
18,717
18,731
18,745
18,759
18,773
18,787
18,801
18,815
18,829
18,843
18,857
18,871
18,885
18,899
18,913
14,631
14,644
14,656
14,669
14,681
14,694
14,706
14,719
14,731
14,744
14,756
14,769
14,781
14,794
14,806
14,819
14,831
14,844
14,856
14,869
19,059
19,073
19,087
19,101
19,115
19,129
19,143
19,157
19,171
19,185
19,199
19,213
19,227
19,241
19,255
19,269
19,283
19,297
19,311
19,325
17,109
17,121
17,134
17,146
17,159
17,171
17,184
17,196
17,209
17,221
17,234
17,246
17,259
17,271
17,284
17,296
17,309
17,321
17,334
17,346
92,000
92,050
92,100
92,150
92,200
92,250
92,300
92,350
92,400
92,450
92,500
92,550
92,600
92,650
92,700
92,750
92,800
92,850
92,900
92,950
90,050
90,100
90,150
90,200
90,250
90,300
90,350
90,400
90,450
90,500
90,550
90,600
90,650
90,700
90,750
90,800
90,850
90,900
90,950
91,000
18,927
18,941
18,955
18,969
18,983
18,997
19,011
19,025
19,039
19,053
19,067
19,081
19,095
19,109
19,123
19,137
19,151
19,165
19,179
19,193
14,881
14,894
14,906
14,919
14,931
14,944
14,956
14,969
14,981
14,994
15,006
15,019
15,031
15,044
15,056
15,069
15,081
15,094
15,106
15,119
19,339
19,353
19,367
19,381
19,395
19,409
19,423
19,437
19,451
19,465
19,479
19,493
19,507
19,521
19,535
19,549
19,563
19,577
19,591
19,605
17,359
17,371
17,384
17,396
17,409
17,421
17,434
17,446
17,459
17,471
17,484
17,496
17,509
17,521
17,534
17,546
17,559
17,571
17,584
17,596
93,000
93,050
93,100
93,150
93,200
93,250
93,300
93,350
93,400
93,450
93,500
93,550
93,600
93,650
93,700
93,750
93,800
93,850
93,900
93,950
19,207
19,221
19,235
19,249
19,263
19,277
19,291
19,305
19,319
19,333
19,347
19,361
19,375
19,389
19,403
19,417
19,431
19,445
19,459
19,473
15,131
15,144
15,156
15,169
15,181
15,194
15,206
15,219
15,231
15,244
15,256
15,269
15,281
15,294
15,306
15,319
15,331
15,344
15,356
15,369
19,619
19,633
19,647
19,661
19,675
19,689
19,703
19,717
19,731
19,745
19,759
19,773
19,787
19,801
19,815
19,829
19,843
19,857
19,871
19,885
17,609
17,621
17,634
17,646
17,659
17,671
17,684
17,696
17,709
17,721
17,734
17,746
17,759
17,771
17,784
17,796
17,809
17,821
17,834
17,846
94,000
94,050
94,100
94,150
94,200
94,250
94,300
94,350
94,400
94,450
94,500
94,550
94,600
94,650
94,700
94,750
94,800
94,850
94,900
94,950
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
92,050
92,100
92,150
92,200
92,250
92,300
92,350
92,400
92,450
92,500
92,550
92,600
92,650
92,700
92,750
92,800
92,850
92,900
92,950
93,000
19,487
19,501
19,515
19,529
19,543
19,557
19,571
19,585
19,599
19,613
19,627
19,641
19,655
19,669
19,683
19,697
19,711
19,725
19,739
19,753
15,381
15,394
15,406
15,419
15,431
15,444
15,456
15,469
15,481
15,494
15,506
15,519
15,531
15,544
15,556
15,569
15,581
15,594
15,606
15,619
19,899
19,913
19,927
19,941
19,955
19,969
19,983
19,997
20,011
20,025
20,039
20,053
20,067
20,081
20,095
20,109
20,123
20,137
20,151
20,165
17,859
17,871
17,884
17,896
17,909
17,921
17,934
17,946
17,959
17,971
17,984
17,996
18,009
18,021
18,034
18,046
18,059
18,071
18,084
18,096
19,767
19,781
19,795
19,809
19,823
19,837
19,851
19,865
19,879
19,893
19,907
19,921
19,935
19,949
19,963
19,977
19,991
20,005
20,019
20,033
15,631
15,644
15,656
15,669
15,681
15,694
15,706
15,719
15,731
15,744
15,756
15,769
15,781
15,794
15,806
15,819
15,831
15,844
15,856
15,869
20,179
20,193
20,207
20,221
20,235
20,249
20,263
20,277
20,291
20,305
20,319
20,333
20,347
20,361
20,375
20,389
20,403
20,417
20,431
20,445
18,109
18,121
18,134
18,146
18,159
18,171
18,184
18,196
18,209
18,221
18,234
18,246
18,259
18,271
18,284
18,296
18,309
18,321
18,334
18,346
20,047
20,061
20,075
20,089
20,103
20,117
20,131
20,145
20,159
20,173
20,187
20,201
20,215
20,229
20,243
20,257
20,271
20,285
20,299
20,313
15,881
15,894
15,906
15,919
15,931
15,944
15,956
15,969
15,981
15,994
16,006
16,019
16,031
16,044
16,056
16,069
16,081
16,094
16,106
16,119
20,459
20,473
20,487
20,501
20,515
20,529
20,543
20,557
20,571
20,585
20,599
20,613
20,627
20,641
20,655
20,669
20,683
20,697
20,711
20,725
18,359
18,371
18,384
18,396
18,409
18,421
18,434
18,446
18,459
18,471
18,484
18,496
18,509
18,521
18,534
18,546
18,559
18,571
18,584
18,596
93,000
91,000
91,050
91,100
91,150
91,200
91,250
91,300
91,350
91,400
91,450
91,500
91,550
91,600
91,650
91,700
91,750
91,800
91,850
91,900
91,950
92,000
But
less
than
And you are —
92,000
90,000
88,000
88,000
88,050
88,100
88,150
88,200
88,250
88,300
88,350
88,400
88,450
88,500
88,550
88,600
88,650
88,700
88,750
88,800
88,850
88,900
88,950
And you are —
89,000
87,000
87,000
87,050
87,100
87,150
87,200
87,250
87,300
87,350
87,400
87,450
87,500
87,550
87,600
87,650
87,700
87,750
87,800
87,850
87,900
87,950
But
less
than
If line 43
(taxable
income) is —
93,050
93,100
93,150
93,200
93,250
93,300
93,350
93,400
93,450
93,500
93,550
93,600
93,650
93,700
93,750
93,800
93,850
93,900
93,950
94,000
94,000
94,050
94,100
94,150
94,200
94,250
94,300
94,350
94,400
94,450
94,500
94,550
94,600
94,650
94,700
94,750
94,800
94,850
94,900
94,950
95,000
A P P E N D I X B — Ta x Ta b l e a n d R a t e S c h e d u l e s
469
2009 Tax Table – Continued
If line 43
(taxable
income) is —
At
least
But
less
than
If line 43
(taxable
income) is —
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
95,000
95,000
95,050
95,100
95,150
95,200
95,250
95,300
95,350
95,400
95,450
95,500
95,550
95,600
95,650
95,700
95,750
95,800
95,850
95,900
95,950
95,050
95,100
95,150
95,200
95,250
95,300
95,350
95,400
95,450
95,500
95,550
95,600
95,650
95,700
95,750
95,800
95,850
95,900
95,950
96,000
96,050
96,100
96,150
96,200
96,250
96,300
96,350
96,400
96,450
96,500
96,550
96,600
96,650
96,700
96,750
96,800
96,850
96,900
96,950
97,000
But
less
than
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
97,000
20,327
20,341
20,355
20,369
20,383
20,397
20,411
20,425
20,439
20,453
20,467
20,481
20,495
20,509
20,523
20,537
20,551
20,565
20,579
20,593
16,131
16,144
16,156
16,169
16,181
16,194
16,206
16,219
16,231
16,244
16,256
16,269
16,281
16,294
16,306
16,319
16,331
16,344
16,356
16,369
20,739
20,753
20,767
20,781
20,795
20,809
20,823
20,837
20,851
20,865
20,879
20,893
20,907
20,921
20,935
20,949
20,963
20,977
20,991
21,005
18,609
18,621
18,634
18,646
18,659
18,671
18,684
18,696
18,709
18,721
18,734
18,746
18,759
18,771
18,784
18,796
18,809
18,821
18,834
18,846
96,000
96,000
96,050
96,100
96,150
96,200
96,250
96,300
96,350
96,400
96,450
96,500
96,550
96,600
96,650
96,700
96,750
96,800
96,850
96,900
96,950
At
least
If line 43
(taxable
income) is —
And you are —
97,000
97,050
97,100
97,150
97,200
97,250
97,300
97,350
97,400
97,450
97,500
97,550
97,600
97,650
97,700
97,750
97,800
97,850
97,900
97,950
97,050
97,100
97,150
97,200
97,250
97,300
97,350
97,400
97,450
97,500
97,550
97,600
97,650
97,700
97,750
97,800
97,850
97,900
97,950
98,000
At
least
But
less
than
And you are —
Single
Married Married
filing
filing
jointly sepa*
rately
Your tax is —
Head
of a
household
21,447
21,461
21,475
21,489
21,503
21,517
21,531
21,545
21,559
21,573
21,587
21,601
21,615
21,629
21,643
21,657
21,671
21,685
21,699
21,713
17,131
17,144
17,156
17,169
17,181
17,194
17,206
17,219
17,231
17,244
17,256
17,269
17,281
17,294
17,306
17,319
17,331
17,344
17,356
17,369
19,609
19,621
19,634
19,646
19,659
19,671
19,684
19,696
19,709
19,721
19,734
19,746
19,759
19,771
19,784
19,796
19,809
19,821
19,834
19,846
99,000
20,887
20,901
20,915
20,929
20,943
20,957
20,971
20,985
20,999
21,013
21,027
21,041
21,055
21,069
21,083
21,097
21,111
21,125
21,139
21,153
16,631
16,644
16,656
16,669
16,681
16,694
16,706
16,719
16,731
16,744
16,756
16,769
16,781
16,794
16,806
16,819
16,831
16,844
16,856
16,869
21,299
21,313
21,327
21,341
21,355
21,369
21,383
21,397
21,411
21,425
21,439
21,453
21,467
21,481
21,495
21,509
21,523
21,537
21,551
21,565
19,109
19,121
19,134
19,146
19,159
19,171
19,184
19,196
19,209
19,221
19,234
19,246
19,259
19,271
19,284
19,296
19,309
19,321
19,334
19,346
21,167
21,181
21,195
21,209
21,223
21,237
21,251
21,265
21,279
21,293
21,307
21,321
21,335
21,349
21,363
21,377
21,391
21,405
21,419
21,433
16,881
16,894
16,906
16,919
16,931
16,944
16,956
16,969
16,981
16,994
17,006
17,019
17,031
17,044
17,056
17,069
17,081
17,094
17,106
17,119
21,579
21,593
21,607
21,621
21,635
21,649
21,663
21,677
21,691
21,705
21,719
21,733
21,747
21,761
21,775
21,789
21,803
21,817
21,831
21,845
19,359
19,371
19,384
19,396
19,409
19,421
19,434
19,446
19,459
19,471
19,484
19,496
19,509
19,521
19,534
19,546
19,559
19,571
19,584
19,596
99,000 99,050
99,050 99,100
99,100 99,150
99,150 99,200
99,200 99,250
99,250 99,300
99,300 99,350
99,350 99,400
99,400 99,450
99,450 99,500
99,500 99,550
99,550 99,600
99,600 99,650
99,650 99,700
99,700 99,750
99,750 99,800
99,800 99,850
99,850 99,900
99,900 99,950
99,950 100,000
21,859
21,873
21,887
21,901
21,915
21,929
21,943
21,957
21,971
21,985
21,999
22,013
22,027
22,041
22,055
22,069
22,083
22,097
22,111
22,125
98,000
20,607
20,621
20,635
20,649
20,663
20,677
20,691
20,705
20,719
20,733
20,747
20,761
20,775
20,789
20,803
20,817
20,831
20,845
20,859
20,873
16,381
16,394
16,406
16,419
16,431
16,444
16,456
16,469
16,481
16,494
16,506
16,519
16,531
16,544
16,556
16,569
16,581
16,594
16,606
16,619
21,019
21,033
21,047
21,061
21,075
21,089
21,103
21,117
21,131
21,145
21,159
21,173
21,187
21,201
21,215
21,229
21,243
21,257
21,271
21,285
18,859
18,871
18,884
18,896
18,909
18,921
18,934
18,946
18,959
18,971
18,984
18,996
19,009
19,021
19,034
19,046
19,059
19,071
19,084
19,096
98,000
98,050
98,100
98,150
98,200
98,250
98,300
98,350
98,400
98,450
98,500
98,550
98,600
98,650
98,700
98,750
98,800
98,850
98,900
98,950
98,050
98,100
98,150
98,200
98,250
98,300
98,350
98,400
98,450
98,500
98,550
98,600
98,650
98,700
98,750
98,800
98,850
98,900
98,950
99,000
$100,000
or over —
use the Tax
Computation
Worksheet
on page 89
¶3701
470
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
Tax Rate Schedules for 2010
CAUTION: Taxpayers may use the rates below to
figure their estimated tax for 2010. To compute their
tax liability for 2009, they must use either the rate
schedules or table on the preceding pages.
2010 Tax Rate Schedules For Individuals
Married individuals filing joint returns and surviving spouses
If taxable income is:
But not over:
Over $0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Over $16,750 . . . . . . . . . . . . . . . . . . . . . . . . .
Over $68,000 . . . . . . . . . . . . . . . . . . . . . . . . .
Over $137,300 . . . . . . . . . . . . . . . . . . . . . . . .
Over $209,250 . . . . . . . . . . . . . . . . . . . . . . . .
Over $373,650 . . . . . . . . . . . . . . . . . . . . . . . .
$16,750
$68,000
$137,300
$209,250
$373,650
---
The tax is:
..............
..............
..............
..............
..............
..............
10% of taxable income
$1,675 + 15% of taxable income in excess of $16,750
$9,362 + 25% of taxable income in excess of $68,000
$26,687.50 + 28% of taxable income in excess of $137,300
$46,833.50 + 33% of taxable income in excess of $209,250
$101,085.50 + 35% of taxable income in excess of $373,650
Heads of households
If taxable income is:
But not over:
Over $0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Over $11,950 . . . . . . . . . . . . . . . . . . . . . . . . .
Over $45,550 . . . . . . . . . . . . . . . . . . . . . . . . .
Over $117,550 . . . . . . . . . . . . . . . . . . . . . . . .
Over $190,550 . . . . . . . . . . . . . . . . . . . . . . . .
Over $373,650 . . . . . . . . . . . . . . . . . . . . . . . .
$11,950
$45,550
$117,650
$190,550
$373,650
---
The tax is:
..............
..............
..............
..............
..............
..............
10% of taxable income
$1,195 + 15% of taxable income in excess of $11,950
$6,235 + 25% of taxable income in excess of $45,550
$24,260 + 28% of taxable income in excess of $117,650
$44,672 + 33% of taxable income in excess of $190,550
$105,095 + 35% of taxable income in excess of $373,650
Unmarried individuals (other than surviving spouses and heads of households)
If taxable income is:
But not over:
The tax is:
$8,375 . . . . . . . . . . . . . .
$34,000 . . . . . . . . . . . . . .
$82,400 . . . . . . . . . . . . . .
$171,850 . . . . . . . . . . . . . .
$373,650 . . . . . . . . . . . . . .
--- . . . . . . . . . . . . . .
Over $0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Over $8,375 . . . . . . . . . . . . . . . . . . . . . . . . . .
Over $34,000 . . . . . . . . . . . . . . . . . . . . . . . . .
Over $82,400 . . . . . . . . . . . . . . . . . . . . . . . . .
Over $171,850 . . . . . . . . . . . . . . . . . . . . . . . .
Over $373,650 . . . . . . . . . . . . . . . . . . . . . . . .
10% of taxable income
$837.50 + 15% of taxable income in excess of $8,375
$4,681.25 + 25% of taxable income in excess of $34,000
$16,781.25 + 28% of taxable income in excess of $82,400
$41,827.25 + 33% of taxable income in excess of $171,850
$108,421.25 + 35% of taxable income in excess of $373,650
Married individuals filing separate returns
If taxable income is:
Over $0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Over $8,375 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Over $34,000 . . . . . . . . . . . . . . . . . . . . . . . . . .
Over $68,650 . . . . . . . . . . . . . . . . . . . . . . . . . .
Over $104,625 . . . . . . . . . . . . . . . . . . . . . . . . .
Over $186,825 . . . . . . . . . . . . . . . . . . . . . . . . .
¶3701
But not over:
$8,375
$34,000
$68,650
$104,625
$186,825
---
The tax is:
..............
..............
..............
..............
..............
..............
10% of taxable income
$837.50 + 15% of taxable income in excess of $8,375
$4,681.25 + 25% of taxable income in excess of $34,000
$13,343.75 + 28% of taxable income in excess of $68,650
$23,416.75 + 33% of taxable income in excess of $104,625
$50,542.75 + 35% of taxable income in excess of $186,825
1040 PREPARATION AND PLANNING GUIDE
Quizzer Questions: Module 2
36.
The 2009 standard deduction for a dependent
with earned income of $2,000 and unearned
income of $1,000 is:
a.
b.
c.
d.
41.
a.
b.
c.
d.
$2,000
$2,300
$3,500
$5,550
42.
37.
In 2009, a single taxpayer’s AGI is $45,000. His medical
costs (minus insurance reimbursements) total $6,500.
He may deduct only medical costs in excess of:
a.
b.
c.
d.
38.
a.
b.
c.
39.
Deduct the expenses in 2009 using his AGI
for 2009
b. Deduct the expenses in 2010 using his AGI
for 2009
c. Deduct the expenses in 2009 using his AGI
for 2010
43.
Deductible taxes include all of the following except:
Real estate taxes based on the assessed value of
the property and charged uniformly against all
property
b. State and local income taxes
c. Taxes paid by parents on property owned by
children
d. Personal property taxes based on the value of
the personal property
a.
Interest incurred to purchase tax-exempt bonds is:
a.
b.
c.
44.
Nondeductible
Deductible as investment interest
Deductible as business interest
Points paid on a mortgage for a principal residence
can be deducted in full in the year of payment
except if the mortgage is taken to:
Improve the residence
Pay off an existing mortgage on the residence
(e.g., refinance at a lower rate)
c. Buy a principal residence
a.
b.
a.
40.
Which of the following interest expenses incurred
by Leila Jackson is treated as nondeductible personal interest?
Interest on an ordinary bank loan used to pay
for her son’s medical care
b. Interest on a home equity loan of $75,000
c. Bonds purchased with accrued interest
d. Interest incurred by a partnership in which Leila
is a limited partner
Face-lift
Breast reconstructive surgery
Laser eye surgery
A taxpayer has dental work done in December
2009 and charges the expenses to his credit card.
None of the work is covered by insurance. He pays
the charge bill in January 2010. He may:
FICA paid by an employee on his/her wages
Local property tax
Ad valorem personal property tax
Foreign income taxes
a.
$1,125
$3,375
$4,500
$6,500
All of the following procedures qualify as a deductible medical expense except:
All of the following taxes could be deductible as
itemized deductions except:
45.
The 2009 limit on deducting student loan interest
is:
a.
b.
c.
d.
$1,000
$1,500
$2,500
$5,000
486
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
46.
In 2009, Harrison donates $25 by personal check
each week to his church collection plate. Which
of the following is not acceptable substantiation
for the donations?
A bank statement reflecting each check
A written acknowledgment from the church
showing total annual contributions
c. A diary with weekly notations of his contributions
51.
a.
b.
c.
d.
a.
b.
47.
In 2009, Harold Stanton donates his old car to
a reputable charity. He believes the car is worth
$1,000; the charity immediately sells it at auction for $600 and provides Harold with a written
acknowledgment. What can Harold deduct?
a.
b.
c.
d.
48.
$500
$600
$1,000
None of the above
On November 18, 2009, Maryann Reilly donates
two bags of items of used clothing to the Salvation
Army. Some of the items are in good used condition, whereas others are in poor condition.
Which statement is correct (assume proper
substantiation)?
The tax tables may be used to figure tax on taxable
income only up to $50,000. True or False?
53.
The Tax Computation Worksheet is used if:
Taxable income is $100,000 or more.
The taxpayer has any capital gains.
The taxpayer used the tax computation worksheet in the prior year.
d. The taxpayer opts to use it.
a.
b.
c.
54.
55.
50.
Unused charitable contributions (in excess of the
AGI limit):
a.
b.
c.
Can be carried forward indefinitely
Can be carried forward for five years
Are lost forever
0%
15%
25%
35%
Max Healy has taxable income of $65,000 that
includes a long-term capital gain from a collectible
of $20,000. What forms or schedules are required
to figure the tax?
The Qualified Dividends and Capital Gain Tax
Worksheet
b. The Tax Tables
c. Both the Qualified Dividends and Capital Gain
Tax Worksheet and the Tax Tables
d. Both the Schedule D Tax Worksheet and the
Tax Tables
a.
In December 2009, George Baker contributes
cash to public charities. What, if anything, is his
deduction for these donations limited to?
50% of adjusted gross income
30% of adjusted gross income
There is no limit
Which of the following rates is not a rate applicable
to a long-term capital gain?
a.
b.
c.
d.
She may deduct the value of all of the items.
She may deduct her cost for all of the items.
She may not deduct the value of any of the
items.
d. She may deduct only the value of the items in
good used condition or better.
a.
b.
c.
Zero
15%
25%
28%
52.
a.
b.
c.
49.
What is the top tax rate applicable to gain on
qualified small business stock?
56.
A commercial fisherman who qualifies to use
income averaging can average his income from
fishing activities over how many years?
a.
b.
c.
d.
3
4
5
10
Quizzer Questions: Module 2
57.
Which of the following is not true regarding
income averaging for farmers?
a.
b.
c.
58.
a.
b.
c.
63.
64.
66.
$500
$2,000
$3,600
$12,000
The child tax credit can result in any of the following except:
a.
b.
c.
$21.49
$21.50
$21.51
Sleepaway camp
Day camp
Nursery school
Day care facility
During 2009, Ed Hilton installed solar panels on
his principal residence at a cost of $12,000. The
maximum residential energy credit he can claim is:
a.
b.
c.
d.
65.
$0
$4,800
$6,000
$7,200
All of the following expenses qualify for the child
and dependent care credit except:
a.
b.
c.
d.
$125,100
$122,500
$166,800
$289,300
If a taxpayer opts to round off all amounts appearing on the tax return, which of the following
amounts is reported as $21 on the return?
Jerry and Ann Jones are married and keep up a
home for their two preschool children, ages 2 and
4. They claim their children as dependents and
file a joint return. Their adjusted gross income
(AGI) is $42,000. Jerry earned $25,000, and Ann
earned $30,000. During the year, they pay workrelated expenses of $4,000 for child care for their
son, Daniel, at a neighbor’s home and $3,200 for
child care for their daughter, Amy, at Pine Street
Nursery School. How much of their child care
payments is eligible for the child and dependent
care credit on their return?
a.
b.
c.
d.
$166,800
$208,500
$250,200
$372,700
Matthew Swenson is a single (unmarried) individual who has no dependents. He can deduct
$3,650 for his personal exemption with adjusted
gross income up to what maximum amount?
a.
b.
c.
d.
61.
$2,000
$3,650
$7,300
$10,950
In 2009, a married couple filing jointly cannot
claim their personal exemptions when adjusted
gross income exceeds:
a.
b.
c.
d.
60.
It applies to both farm and nonfarm income.
It applies only to farm income.
It is figured on Schedule J.
In 2009, a husband and wife have one child, age 2.
What is the maximum deduction they can claim
for exemptions on a joint return?
a.
b.
c.
d.
59.
62.
A refundable personal credit
A nonrefundable personal credit
A deduction from taxable income
In 2009, the maximum amount of American
opportunity credit available to parents with two
children in their first four years of college is:
a.
b.
c.
d.
$1,000
$1,800
$2,500
$5,000
487
488
1 0 4 0 P R E PA R AT I O N A N D P L A N N I N G G U I D E
67.
Which of the following expenses are not eligible
for the adoption credit?
a.
b.
c.
d.
68.
Surrogate parenting arrangement costs
Court costs
Attorney’s fees
Adoption fees
Liz Shepard incurred qualified adoption expenses
of $15,000 in 2009 for an adoption that became
permanent in 2009. Liz’s AGI for 2009 was
$174,000. What is the amount of the credit Liz
can take in 2009 for the adoption expenses she
incurred (assume that Liz did not receive any
employer-paid adoption assistance)?
a.
b.
c.
d.
69.
$0
$5,075
$11,650
$12,150
With regard to the credit for retirement savings
contribution in 2009, which of the following
statements is not correct?
The maximum credit is 50% of contributions
on elective deferrals up to $2,000.
b. Married couples filing joint returns cannot
claim the credit if AGI exceeds $55,500.
c. The credit is claimed on Form 8880.
d. The credit may not be claimed with respect
to any amounts upon which contributions or
deferrals are based.
a.
70.
The earned income credit is available to:
Persons with one qualifying child
Persons with two or more qualifying children
Persons with a qualifying child without regard
to age
d. All of the above
a.
b.
c.