us internal revenue service: i1040a--1991

8/14/2019 US Internal Revenue Service: i1040a--1991

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Instructions for Form

Note: This booklet does not contain any tax forms.

Whats inside?

Fast filing (page 6)

Whats new for 1991 (page 7)

Free tax help (page 7)

Letter from the Commissioner (page 4)

How to make a gift to reduce the public debt (page 9)

Department of the TreasuryInternal Revenue Service

1040A

1991

Avoid common mistakes (page 6)

Tax table (page 44)

How to order forms and publications (page 66)

Index (page 72)


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Table of Contents Pr ivacy Act an d Pa perwork Reduction Act Notice 3Letter from the Commissioner 4

Major categories of Feder al income an d outlays for fiscal year 1990 5

Fa st filing 6

Avoid comm on mist ak es 6

Recycling 6

Sect ion 1 Before you f il l out Form 1040A 7

Wha ts new for 1991? 7

What free tax help is available? 7

What if a person died? 8

What are th e filing dates, penalties, and extensions? 9

Gift to redu ce th e public debt 9

Can I use substitu te tax forms? 9

How do I get copies of my ta x ret ur ns? 9

Sect ion 2 Fi ling requirements 10

Do I ha ve to file? 10

Which form should I use? 14

Sect ion 3 Line instruct ions for Form 1040A 16

Step 1Nam e, addr ess, an d social security nu mber 16

Pr esident ial Election Campa ign Fu nd 17Step 2Check your filing sta tu s 17

Step 3Figur e your exempt ions 20

Step 4Figur e your tota l income 24

Step 5Figur e your adju sted gross income 33

IRA dedu ction 33

Step 6Figur e your ta xable income 37

Sta nda rd deduction 37

Step 7Figure your tax, credits, an d payment s 39

Credit for child an d dependent car e expenses 39

Credit for th e elderly or th e disabled 40

1991 estimat ed ta x payment s 40

Ea rned income credit 41

Excess social security ta xes with held 41

Step 8Figure your refund or amount you owe 42

Step 9Sign your retu rn 43

Sect ion 4 Tax tab le 44

Sect ion 5 Instruct ions for Schedules 1 , 2, and EIC 50

Schedule 1 50

Schedule 2 51

Schedule EIC 56

Sect ion 6 After you fi l l out Form 1040A 65

Wher e do I file? 65

What do I need if I write to th e IRS? 65What should I do if I move? 65

How long should I keep my ta x retu rn ? 65

Income ta x withholding and estimat ed tax payment s for 1992 66

How do I amen d my tax retu rn ? 66

How do I get form s an d publications? 66

Where do I call to get an swers to my Federa l tax questions? 69

What is Tele-Tax? 70

Tele-Tax topic nu mber s an d subjects 71

Index 72


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What should Iknow about thePrivacy Act andPaperworkReduction ActNotice?

The law says that when we ask you for information we must tell you our legalright to ask for the information, why we are asking for it, and how it will beused. We must also tell you what could happen if we do not receive theinformation and whether your response is voluntary, needed for a benefit, ormandat ory under th e law.

This notice applies to all papers you file with us as well as any questions we askyou s o we can complete, corr ect, or pr ocess your r etu rn ; figure your t ax; an dcollect the tax, interest, or penalties. Internal Revenue Code sections 6001, 6011,

and 6012(a) say tha t you m ust file a retur n or sta tement with us for a ny ta x forwhich you are liable. Your response is mandatory under these sections. Codesection 6109 says that you must show your social security number on what youfile, so we know who you are and can process your return and other papers. Youmust fill in all parts of the tax form that apply to you. However, you do not haveto check the boxes for the Presidential Election Campaign Fund.

We may give th e informa tion t o the Departm ent of Just ice an d to other Federalagencies, as provided by law. We may also give it to certain cities, states, theDistrict of Columbia, U .S. comm onwealth s or possessions, a nd cert ain foreigngovernments to carr y out their ta x laws.

If you do not file a ret ur n, do not give the inform at ion a sked for, or give falseinformation, you may be charged penalties and you may be subject to criminal

prosecut ion. We m ay a lso have t o disallow th e exempt ions, exclusions, credits,deductions, or a djustment s shown on your ta x retur n. This could ma ke th e ta xhigher or delay any refund. Inter est m ay also be char ged.

Please keep this notice with your records. It may help you if we ask you forother information. If you have questions about the rules for filing and givinginform at ion, pleas e call or visit an y Int ern al Revenu e Service office.

The t ime i t takes to prepare your return. We try to create forms andinstru ctions t hat are accura te a nd can be easily understood. Often this isdifficult to do because some of the tax laws enacted by Congress are verycomplex. For some people with income mostly from wages, filling out the forms iseasy. For others who have businesses, pensions, stocks, rental income, or otherinvestments, it is more difficult.

The t ime n eeded t o complet e an d file t he following form s will vary depen ding onindividual circumsta nces. The estimat ed average times a re:

Sch. 3(1040A)

Sch. 2(1040A)

Sch. 1(1040A)Form 1040A

13 min.20 min.Recordkeeping 1 hr., 3 min.

Learning about the lawor the form 14 min.4 min.2 hr., 11 min.

26 min.10 min.Preparing the form 2 hr., 51 min.

Copying, assembling, andsending the form to the IRS 35 min.20 min.35 min.

33 min.

11 min.

37 min.

28 min.

Sch. EIC(1040A)

40 min.

17 min.

35 min.

48 min.

The estimated average time for people with IRA distributions, pension income,social security benefits, etc., is: Recordkeeping, 2 hr., 17 min.; Learningabout the law or the form, 2 hr., 46 min.; Preparing the form, 3 hr., 40min.; Copying, assem bl ing, and se nding the form to th e IRS, 35 min.

We we lcome comm ents on forms. If you have comments concerning theaccuracy of these time estimates or suggestions for making these forms moresimple, we would be happy to hear from you. You can write to both the InternalRevenue Se rv ice , Washington, DC 20224, Attention: IRS Reports ClearanceOfficer, T:FP; a nd t he Office of Manageme nt and Budget , PaperworkReduction Project (1545-0085), Washington, DC 20503. DO NOT send yourreturn to either of these offices. Instead, see Whe re do I f i le? on page 65.


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Dear Taxpayer:

I thank each of you reading this letter for doing your part to keep our tax systemthe finest in the world. It works well because so many of you do your best to pay yourfair sha re. As countries a round the world embra ce our wa y of life, it is a reminderth at governmen t in a free count ry can only be finan ced th rough volunt ary complianceand the support of the public it serves.

We have been working for many months to make this filing season the best ever.This will mean prompt r efun ds, accur ately filed an d processed retu rns, t ax formswhen and where you need them, and the right answers and assistance from courteous,respectful employees. Electronic filing is now available for everyone. Were testingexciting new a pproaches by letting certa in t axpayers file by telephone an d by doingthe math for taxpayers who ask for our help.

I also want to make clear our commitment to a decade of fundamental change.Your government must simplify the tax law. We must make it far easier to deal withth e IRS. All of you who try to pay your fair sh are ha ve every right t o expect t ha t t heIRS will make sure others do the same. As citizens who own the government, youshould insist that we make the best use of your tax dollars.

We are dedicat ed to rea ching t hese goals. The jour ney requires us to modernizeour comput er systems; to help ta xpayers do what s right in paying wha t t hey owe; tomeet the highest standards of quality; to promote the highest ethical standards; andto assure diversity in our work force.

You have every right t o demand tha t we deliver. I t hink were ma king progress.With your support and oversight, well get there. Dont settle for less.

Fred T. Goldberg, Jr.


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Major categoriesof Federal incomeand outlays forfiscal year 1990

In fiscal year 1990, which began on October 1, 1989, and ended on September30, 1990, Federal income was $1,031.3 billion and outlays were $1,251.7 billion,leaving a deficit of $220.4 billion. The budget deficit is financed largely bygovernment borrowing from the public. The government borrows from the publicby selling bonds and other debt securities to private citizens, banks, businesses,and other governm ents.

The pie charts below show the relative sizes of the major categories of Federalincome an d outla ys for fiscal year 1990.

Where the income came from:

What the outlays were:

1About 23% was for defense; 2% was for veterans benefits and services; and 1% was for foreign affairs including military

and economic assistance to foreign countries and the maintenance of U.S. embassies abroad.

2About 7% was spent to fund Medicaid, food stamps, aid to families with dependent children, supplemental security

income, and r elated programs. About 5% was spent for health r esearch and pu blic health programs, unemploymentcompensation, assisted housing, and social services.

3This category consists of agricultura l programs; nat ural resources an d environmental pr ograms; t ransportat ion

programs; aid for elementary and secondary education and direct assistance to college students; job training programs;economic development programs including deposit insurance; and space, energy, and general science programs.

Personal incometaxes37%

Excise, customs,estate, gift, and

miscellaneous taxes7%

Corporateincome taxes

8%

Borrowing tocover deficit

18%

Social security, Medicare,and unemployment andother retirement taxes

30%

Law enforcementand generalgovernment

2%

Social security,

Medicare, and otherretirement31%

Defense, veterans,and foreign affairs

1

27%

Net interest onthe debt

14%

Physical, human,and communitydevelopment 3

14%

Socialprograms

2

12%


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Fast filing Last year over 7.5 million people filed their tax returns electronically bycomputer. Electronic filing is a fast and accurate way to file your return with theIRS. If you are expecting a refund, it will be issued within 3 weeks from thetime the IRS accepts your return. If you have your refund directly deposited intoyour savings or checking account, you could receive your money even faster.Even if you are not expecting a refund, electronic filing is still a fast andaccurate way to file your return.

Many professional tax preparers offer electronic filing in addition to their

prepara tion ser vices. A paid prepar er m ust sign your Form 8453, U.S.Individual Income Tax Declaration for Electronic Filing. Even if you prepareyour own return, a preparer or transmitter in your area can file your returnelectronically for you. For more information on electronic filing, see Tele-Tax(topic no. 112) on page 71.

Avoid commonmistakes

This checklist is to help you make sure you fill out your tax return correctly.Err ors m ay delay your refund.

1. If a child lived with you and t he a mount on F orm 1040A, line 16, is under$21,250, read the instructions for new Schedu le EIC tha t begin on page 56to see if you can take the earned income credit.

2. Make sur e you u se th e correct filing statu s. If you t hink you can file as Headof household, read the instructions for line 4 that begin on page 18 to makesur e you qua lify.

3. En ter your s ta nda rd dedu ction on line 19. If you check any box on line 18a or18b, be sure you see page 37 to find the amount to enter on line 19.

4. If you (or your spouse, if you can check t he box on lin e 6b) were a ge 65 orolder or blind, check the appropriate boxes on line 18a.

5. If your par ent s (or someone else) can claim you a s a depen dent on t heir 1991return (even if they choose not to claim you), check the box on line 18b.

6. Make sure your n ame, address, and social security nu mber ar e correct on thelabel. If not, corr ect t he la bel.

7. If you a re ma rr ied filing a joint r etu rn a nd didnt get a la bel, or you ar ema rr ied filing a separ at e retu rn , enter your spouses social security nu mberin t he spa ce provided on page 1 of Form 1040A.

8. Be sure you ent er your t ota l tax on line 27.

9. Check your compu ta tions (addit ions, subt ra ctions, etc.) especially whenfiguring your Federal income tax withheld and your refund or amount youowe.

10. Atta ch your W-2 form(s) an d an y oth er requ ired form s an d schedules. And

dont forget to sign and date Form 1040A and enter your occupation.

Recycling The tax forms and instructions you received are printed on recyclable paper. Ifyour community has a recycling program, please recycle. (Remember to keep acopy of your return and any worksheets you used for your records.) The InternalRevenue Service tries to use recycled paper for all of its forms and instructions.


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Section 1Before you fill out Form 1040A

Whats new for1991?

New earned income cred i t ru les . If you earned less than $21,250 and aqualifying child lived with you, you may be able to take the earned income creditfor 1991. The credit is now made up of three partsthe basic credit, the healthinsurance credit, and the extra credit for a child born in 1991. You can take eachpart that applies to you. You may be able to take the credit even if your filingstatus is single. In most cases, the child does not have to be your dependent. But

the child must meet certa in age a nd other conditions. Read t he instr uctions forSchedule EIC that begin on page 56 to see if you can take the credit. Also, readPart I of Schedule EIC to see if you have a qualifying child.

Social securi ty number for depende nts age 1 or o lder. If you can claim anyperson age 1 or older as a depen dent , show tha t per sons social security nu mberon your retu rn. If your dependent does not ha ve a nu mber, see the inst ructionsfor line 6c, column (3), on page 23.

Increased deduct ion for exemptions. The deduction for each exemptionforyou, your spouse, and dependentshas increased to $2,150.

Increased standard deduct ion. The sta ndar d deduction h as increased. Readthe instructions for line 19 on page 37.

Additional information. If you want more information about tax law changesfor 1991, get Pub. 553. You may also find the publications listed at the end ofthis booklet helpful in completing your return.

Operat ion Desert Storm/Desert Shield. If you were a participant inOpera tion Desert Storm or Desert Shield, see Tele-Tax (topic no. 468) on page 71for more inform at ion, including extens ions of deadlines for ta king care of ta xmat ters such as filing retur ns, ma king contr ibutions t o an IRA, or pa ying ta xes.

What free tax helpis available?

Tax forms an d publ icat ions. Most of your tax questions can be answered byreading the tax form instructions or one of our many free tax publications. Seepage 66.

Recorded tax information by telephon e. Ou r Tele-Tax service ha s r ecordedtax information covering about 140 topics. See page 70 for the numbers to call.

Refund information. Tele-Tax can tell you the status of your refund. Fordetails, see Tele-Tax beginning on page 70.

Telephone help. IRS representa tives are a vailable to help you with your ta xquestions. If, after reading the tax form instructions and publications, you arenot sure about how to fill out your return, or if you have a question about anotice you received from us, pleas e call us. Use th e t oll-free nu mber for yourarea on page 69.

Send the IRS wri t ten quest ions. You m ay send your written ta x questions t oyour IRS District Director. If you dont have the address, you can get it by

calling the number for your area on page 69.

Walk-in help. Assistors are available in most IRS offices throughout thecountry to help you prepare your return. An assistor will explain or walkthrough a Form 1040EZ, Form 1040A, or Form 1040 and Schedules A and Bwith you a nd a num ber of other ta xpayers in a group setting. To find th elocation of the IRS office nearest you, look in the phone book under UnitedStat es Governmen t, Int erna l Revenue Service.

Voluntee r Income Tax Assistan ce (VITA) and Tax Counsel ing for theElde rly (TCE). These programs help older, disabled, non-English-speaking, and


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What free taxhelp is available?(continued)

low-income people fill out th eir r etu rn s. Call t he t oll-free t elephone nu mber foryour area on page 69 for details. If you received a Federal income tax package inthe mail, take it with you when you go for help.

Videotaped instruct ions for completing your return are available in Englishand Spanish at many libraries.

Telephone h elp for hearing-impaired people is available. See page 69 forthe n umber t o call. Brail le materials for the bl ind are available at regional

libraries for the blind and the disabled.Unresolved tax problems. Th e Problem Resolut ion Program is for peoplewho have been unable to resolve their problems with the IRS. If you have a taxproblem you cannot clear up through normal channels, write to your local IRSDistrict Director or call your local IRS office and ask for Problem Resolutionassistance. Hearing-impaired people who have access to TDD equipment maycall 1-800-829-4059 to ask for help from Problem Resolution. This office cannotchange the tax law or technical decisions. But it can help you clear up problemstha t resulted from previous conta cts.

Free SocialSecurity Personal

Earnings andBenefit EstimateStatement

The Social Security Administration (SSA) can mail you a statement of yoursocial security earnings and your estimated future benefits. To get this

sta tement , complete a r equest form and retur n it t o the SSA. You m ay get aform by writing to Consumer Information Center, Departm ent 72, Pueblo,CO 81009.

Do both the nameand socialsecurity numberon your tax formsagree with yoursocial securitycard?

If not, your refund ma y be delayed or you m ay n ot receive credit for your socialsecurity earnings.

If your Form W-2, Form 1099, or other tax document shows an incorrect socialsecurity number or name, notify your employer or the form-issuing agent as soonas possible to make sure your earnings are credited to your social securityrecord.

If the name or number on your social security card is incorrect, call the SocialSecurity Administ ra tion t oll free a t 1-800-772-1213.

What if a persondied?

If a per son died before filing a ret ur n for 1991, th e persons spouse or per sonalrepresenta tive may ha ve to file a retu rn and sign for t he person who died. Apersonal representative can be an executor, administrator, or anyone who is incharge of the deceased per sons pr opert y. If th e person did not h ave t o file areturn but had tax withheld, a return must be filed to get a refund.

The person who files the return should write DECEASED, the deceasedpersons na me, and t he dat e of deat h a cross the top of the retu rn.

If your spouse died in 1991 and you did not remarry in 1991, or if your spousedied in 1992 before filing a r etu rn for 1991, you can file a joint ret ur n. A joint

ret ur n should sh ow your spouses 1991 income before deat h an d your in come forall of 1991. Write Filing as s ur viving spouse in th e ar ea wh ere you sign th eretu rn. If someone else is th e personal representa tive, he or she must also sign.

If you are a surviving spouse filing a joint return with the deceased, file only thetax return to claim the refund. If you are a court-appointed representative, filethe retu rn and att ach a copy of the certificat e tha t sh ows your appointm ent. Allother filers r equesting the deceased persons refund m ust file the ret urn andattach Form 1310.

For more details, see Tele-Tax (topic no. 158) on page 71 or get Pub. 559.


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What are the filingdates, penalties,and extensions?

When is m y tax return due? Your tax return must be postmarked by April15, 1992.

What if I need more t ime to f i le? If you need m ore tim e to complete yourreturn, file Form 4868 with the IRS by April 15, 1992. This form will get you anautomatic 4-month extension. If you later find that you still need more time,Form 2688 may get you an additional extension. However, even if you get anextension, the tax you owe is still due April 15, 1992. If you make a paymentwith Form 4868 or Form 2688, see the instructions for line 28d on page 41.

Note: Desert Storm participants see Pub. 945 for special rules on when to file.

What if I f i le or pa y late? If you file or pay late, the IRS can charge youinterest and pena lties on t he am ount you owe.

If you file late, the penalty is usually 5% of the amount due for each month orpart of a month your retu rn is lat e, unless you ha ve a reasonable explanat ion. Ifyou do, atta ch it to your retu rn. The pena lty cann ot u sually be more t han 25% ofthe ta x due. We will char ge you int erest on th e penalty from t he due da te of thereturn (including extensions).

If your retu rn is more tha n 60 days lat e, the m inimum penalty will be $100 orthe amount of any tax you owe, whichever is smaller.

If you pay your taxes late, the penalty is usually 12 of 1% of the unpaid amountfor ea ch m onth or pa rt of a month the t ax is not paid. The penalty cannot bemore than 25% of the unpaid amount. It applies to any unpaid tax on the return.It also applies to any additional tax shown on a bill not paid within 10 days ofthe date of the bill.

Are there other pen al t ies? Yes. Other pena lties can be imposed for negligence,substan tial un dersta tement of tax, and fraud. We will char ge you int erest onthese penalties from the due date of the return (including extensions). Criminalpenalties may be imposed for willful failure to file, tax evasion, or making a falsesta tement . See Pub. 17 for det ails.

In addition to any other penalties, the law imposes a penalty of $500 for filing afrivolous return. A frivolous return is one that does not contain information

needed to figure the correct tax or shows a substantially incorrect tax, becauseyou take a frivolous position or desire to delay or interfere with the tax laws.This includes altering or str iking out the preprinted lan guage above the spa ceprovided for your signature.

Gift to reduce thepublic debt

You ma y ma ke a gift to redu ce the public debt. If you wish t o do so, enclose aseparat e check with your income t ax retu rn. Make it payable to Burea u of thePublic Debt. If you file Form 1040 for 1992 and itemize your deductions, youmay be able to deduct this gift.

Can I use

substitute taxforms?

You may not use your own version of a tax form unless it meets therequirements explained in Pub. 1167. You can order the publication by writingto the Distribution Center for your state. See page 68 for the address.

How do I getcopies of my taxreturns?

If you need a copy of your tax return, use Form 4506. There is a charge of $4.25.If you have questions about your account, call or write your local IRS office. Ifyou would like a printed copy of your account, it will be mailed to you free ofcharge.


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Sect ion 2Filing requirements

Do I have tofile?

These rules apply to all U.S. citizens and resident aliens. They also apply tononresident aliens and dual-statu s a liens who were ma rried t o U.S. citizens orresidents at the en d of 1991 and who have elected t o be tr eated a s residentaliens. Specific rules apply to determine if you are a resident or nonresidentalien. Get Pub. 519 for details.

Use Chart A on page 11 to see if you must file a return. But you must useChart B on page 12 if your par ent (or someone else) can claim you a s adependent on his or her return. Also, see Chart C on page 13 for othersituations when you must file.

Even if you do not have to file a return, you should file one to get a refund ofany Federal income tax withheld. You should also file to get a refund of earnedincome credit if you can take the credit.

Except ion for chi ldren u nder age 14. If your child was under age 14 onJanuary 1, 1992, and all three of the following apply, you may elect to reportyour childs income on your ret ur n. But you m ust use F orm 1040 and F orm 8814to do so. If you make this election, your child does not have to file a return.

1. Your child had income only from interest and dividends (including AlaskaPermanent Fund dividends), and

2. Your childs gross income was more tha n $500 but less tha n $5,000, and

3. Your child had no Federal income ta x withheld from his or her income(backup withholding) or did not make estimated tax payments for 1991.

If you a nd t he childs oth er pa ren t a re not filing a joint r etu rn , special ru lesapply to determine which parent may make the election. Get Form 8814 fordetails.


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Chart Afor most people

To use th is char t, first find your m arita l stat us a t t he end of 1991. Then, readacross to find your filing status and age at the end of 1991. You must file areturn if your gross income was at least the amount shown in the last column.Gross incom e means all income you received in the form of money, goods,property, and services that is not exempt from tax, including any gain on thesale of your main home.

Gross incomeAge*Filing statusMarital status

under 6565 or older

$5,550$6,400

SingleSingle (includingdivorced and legallyseparated) under 65

65 or older$7,150$8,000

Head of household

Married with a child andliving apart from yourspouse during the last 6months of 1991

Head of household(see page 18)

$7,150$8,000

under 6565 or older

$10,000$10,650$11,300

under 65 (both spouses)65 or older (one spouse)65 or older (both spouses)

Married and living withyour spouse at end of1991 (or on the date

your spouse died)

Married, joint return

$2,150any ageMarried, separate return

Married, not living withspouse at end of 1991(or on the date yourspouse died)

Married, joint orseparate return

$2,150any age

under 6565 or older

$5,550$6,400

Single

under 6565 or older

$7,150$8,000

Head of householdWidowed before 1991and not remarried in1991

Qualifying widow(er)with dependent child(see page 19)

$7,850$8,500

under 6565 or older

* If you turned 65 on January 1, 1992, you are considered to be age 65 at the end of 1991.


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Do I have tofile?(continued)

Chart Bfor children and other dependents

(See the in str uctions for line 6c on pa ge 20 to find out if someone can claim youas a dependent.)

If your parent (or someone else) can claim you as a dependent on his or herreturn, and any of the four conditions below applies to you, you must file areturn .

In this chart, unearned income includes ta xable inter est a nd dividends.Earned income includes wages, tips, and taxable scholarship and fellowshipgrants.

Caution: If your gross income was $2,150 or more, you usually cannot beclaimed as a dependent unless you were under 19 or under 24 and a student. Fordetails, see Test 4Income on page 21.

1. S in g le d e p e n de n ts u n d e r 65. You must file a return if

the tota l of that income plusYour une arned income was: and your earned income was:

$1 or more more th an $550

$0 more than $3,400

2 . S ing le dependents 65 or o lder or b lind . You m ust file a retu rn if

Your ea rn ed income was more t ha n $4,250 ($5,100 if 65 or older an d blind),or

Your u nea rn ed income wa s m ore t ha n $1,400 ($2,250 if 65 or older an dblind), or

Your gross income was more than the total of your earned income (up to$3,400) or $550, whichever is larger, plus $850 ($1,700 if 65 or older an dblind).

3 . Ma rr ie d d e pe n d e n t s u n d e r 6 5. You must file a return if

Your earned income was more than $2,850, or

You had any unearned income and your gross income was more than $550,or

Your gross income was at least $5 and your spouse files a separate return onForm 1040 and itemizes deductions.

4 . Married dependents 65 or o lder or b lind . You must file a return if

Your ea rn ed income was more t ha n $3,500 ($4,150 if 65 or older an d blind),or

Your u nea rn ed income wa s m ore t ha n $1,200 ($1,850 if 65 or older an dblind), or

Your gross income was more than the total of your earned income (up to$2,850) or $550, whichever is larger, plus $650 ($1,300 if 65 or older an dblind), or

Your gross income was at least $5 and your spouse files a separate return onForm 1040 and itemizes deductions.


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Do I have tofile?(continued)

Chart Cother situations when you must file

You must also file a return if you received any advance earned income credit(AEIC) pa yment s from your em ployer.

You must file a return using Form 1040 ifan y of the following applied for 1991:

You owe any special taxes, such as social security and Medicare tax on tipsyou did not report to your employer, or

You owe uncollected social security and Medicare or RRTA tax on tips youreported to your employer, or

You owe uncollected social security and Medicare or RRTA tax on yourgroup-ter m life insur an ce, or

You had net earnings from self-employment of at least $400, or

You ear ned wa ges of $108.28 or more from a church or a qua lifiedchurch-controlled organization that is exempt from employer social securityand Medicare taxes, or

You owe tax on an individual retirement arrangement (IRA) or a qualifiedretirement plan. However, if you are filing a return only because you owethis tax, you can file Form 5329 by itself.

Would it help meto use Form1040?

You may itemize deductions on Form 1040. Itemizing may help you if you havelarge deductions for it ems su ch a s rea l estat e ta xes, sta te a nd local income t axes,mortgage interest, gifts to charity, or medical expenses.

Even if you do not itemize deductions, you can use Form 1040 to claim otheritems, such as the penalty on early withdrawal of savings. It would usuallybenefit you to itemize deductions if

Your filing status is: And itemized deductions are more than:

Single

Under 65 $3,400

65 or older or blind $4,250 65 or older and blind $5,100

Married filing joint

Under 65 (both spouses) $5,700 65 or older or blind (one spouse) $6,350 65 or older or blind (both spouses) $7,000 65 or older and blind (one spouse) $7,000 65 or older or blind (one spouse) and

65 or older and blind (other spouse) $7,650

65 or older and blind (both spouses) $8,300

Married filing separate *

Your spouse itemizes deductions $0 Under 65 $2,850 65 or older or blind $3,500

65 or older and blind $4,150Head of household

Under 65 $5,000 65 or older or blind $5,850 65 or older and blind $6,700

Qualifying widow(er) with dependent child

Under 65 $5,700 65 or older or blind $6,350 65 or older and blind $7,000

* If you can tak e an exemption for your spouse, see Standard Deduct ion Chart for People Age 65or Older or Blind on page 38 for the amounts that apply to you.


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There are three tax returns for individuals: Form 1040EZ, Form 1040A, and Form1040. You ma y use Form 1040 if you want to, but you will probably save t ime if you

Which formshould I use?

Number ofexemptions

Only income fromTaxable incomeFiling status

Form 1040EZ Wages, salaries, tipsOnly taxableincome (line 5) ofless than $50,000

No more than onepersonal exemptionfor yourself

Single (underage 65 and notblind)

Taxable scholarship andfellowship grants

Interest of $400 or less

Wages, salaries, tipsOnly taxable income(line 22) of less than$50,000

All exemptions thatyou are entitled toclaim

SingleForm 1040A Taxable scholarship and

fellowship grants Married filing joint Married filing

separate Interest Dividends Head of household Pensions, annuities, and

IRAs Qualifying widow(er)

with dependent child Unemployment

compensation Taxable social security

and railroad retirementbenefits

Wages, salaries, tipsAny amount oftaxable income(line 37)

All exemptions thatyou are entitled toclaim

SingleForm 1040 Taxable scholarship and

fellowship grants Married filing joint Married filing

separate Interest Dividends Head of household Taxable social security

and railroad retirementbenefits

Qualifying widow(er)with dependent child

Unemploymentcompensation

Self-employment Rents and royalties Pensions, annuities, and

IRAs Taxable state and local

income tax refunds Capital gains Gain from the sale of

your home Alimony received All other sources

You must use Form 1040 if:When must I useForm 1040? 1 . You r ece ived an y of the following types of income:

Self-employment income.

Certain tips you did not report to your employer. See Tip incom e on

page 25. Capital gain distributions or nontaxable distributions.

Alaska Permanent Fund dividends.

Income received as a partner in a partnership, shareholder in an Scorporation, or a beneficiary of an estate or trust.

2. You received or paid inter est on securities tra nsferred between interestpayment dates.

3. You were a nonresident a lien at any time in 1991 and do not file a jointreturn .


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are able to use Form 1040EZ or Form 1040A instead. However, some people must use Form 1040, asexplained below. The chart on these pages will help you decide which form to use.

Tax creditsOther taxesItemized deductionsAdjustments to income

No tax creditsNo other taxesNo itemized deductionsNo adjustments toincome

Only:Only advance earnedincome credit (AEIC)payments

No itemized deductionsOnly the deduction forcertain contributions to anIRA (includingnondeductiblecontributions to an IRA)

Earned income credit(Schedule EIC)

Credit for child anddependent care expenses(Schedule 2)

Credit for the elderly or thedisabled (Schedule 3)

All tax credits:All other taxes:All itemized deductions (UseSchedule A):

All adjustments to income: Advance earned income

credit (AEIC) payments Alimony paid Earned income credit

State and local incometaxes

Credit for child anddependent care expenses

Penalty for early withdrawalof savings Self-employment tax

Real estate taxes Credit for the elderly or thedisabled

Tax on qualified retirementplans (including IRAs)

Deduction for certaincontributions to an IRA orKeogh plan (includingnondeductible contributionsto an IRA)

Home mortgage interestpaid General business credit

Gifts to charity Alternative minimum tax

Foreign tax credit Medical and dental

expenses

Social security andMedicare tax on tips notreported to your employer

Credit for prior yearminimum tax Deduction for self-

employed health insurance Casualty and theft losses Uncollected social securityand Medicare tax on tipsshown on your Form W-2

Credit for Federal tax onfuels Moving expenses Deduction for one-half of

self-employment tax Miscellaneous deductions Mortgage interest credit All other adjustments Uncollected social security

and Medicare tax on yourgroup-term life insurance

All other credits

When must I useForm 1040?(continued)

6. You ar e report ing original issue discount (OID) in an a mount m ore or lesstha n t he am ount shown on Form 1099-OID.

All other income taxes

4 . You can exclude e i ther of the following types of income:

Foreign earned income you received as a U.S. citizen or resident alien.

Cert ain income received from sources in a U.S. possession if you were abona fide resident of American Samoa for all of 1991.

5. You ha d a finan cial account in a foreign count ry (such as a ban k account orsecurities account). Except ion. If the combined value of the accounts was$10,000 or less during all of 1991, or if the accounts were with a U.S.military banking facility operated by a U.S. financial institution, you mayfile Form 1040A.


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Section 3Line instructions for Form 1040A

Step 1

Name, address, andsocial securitynumber

Why use the label? The mailing label on the front of the instruction booklet isdesigned to speed processing at Internal Revenue Service centers and preventcomm on err ors tha t delay refund checks. But dont a tt ach it un til you ha vefinished your return. Cross out any errors and print the correct information onthe label. Add any missing items (such as your a part ment num ber).

Besides your name, address, and social security number, the label containsvarious code num bers an d letters. The diagram below explains what thesenumbers and letters mean.

Your mailing labelwhat does it mean?

Postal service local deliveryroute within your ZIP code

Computer shorthand for your name.By entering the two letters and thefirst social security number, the IRScan identify the correct account.

Internal Revenue Servicecenter where you filedlast year

Your socialsecurity numbers

CAR-RT SORT**CR01

BN 651-00-1492 652-00-1776 S29 A1

JOHN C & JANE F DOE

310 OAK DR 203

HOMETOWN UT 84310

Type of taxpackagemailed toyou

Mail bag number usedto presort ZIP codedesignation

ZIP codeYour name and address

If you did n ot receive a label , print or t ype the informa tion in the spa cesprovided. But if you are married filing a separate return, do not enter your

hu sban ds or wifes na me her e. Instea d, show his or her n am e in th e spaceprovided on line 3.

Name change . If you changed your n am e because of mar riage, divorce, etc., besure to report this to the Social Security Administration. This prevents delays inprocessing your return and safeguards your future social security benefits.

Social securi ty number. Enter your social security number in the area markedYour social security no. If you are married, enter your husbands or wifessocial security n um ber in t he a rea ma rked Spouses social securit y no.

If you dont h ave a s ocial secur ity nu mber , get Form SS-5 from your local SocialSecurity Administ ra tion (SSA) office. Fill it out an d r etu rn it t o the SSA office. Ifyou do not receive a number by the time your return is due, write applied for

in the spa ce for t he nu mber.Nonres ident a l ien spouse . If your spouse is a nonresident alien and you file a joint return, your spouse must get a social security number. If you file a separateretu rn and your spouse h as n o social security n umber and no income, writeNRA in t he s pa ce for your spouses n um ber.

P.O. box. If your post office does not deliver mail to your home and you have aP.O. box, show your P.O. box number instead of your home address.

Foreign address . If your address is outside of the United States or itspossessions or t err itories, enter th e inform at ion on t he line for City, town or


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post office, state, and ZIP code in the following order: city, province or state,postal code, and the name of the country. Do not abbreviate the country name.

Presiden t ia l Elect ion Campaign Fund

Congress set up this fund to help pay for Presidential election costs. If you want$1 of your tax to go to this fund, check the Yes box. If you are filing a jointret ur n, your spouse ma y also ha ve $1 go to th e fund. If you check Yes, your t axor refund will not change.

Step 2

Check your filingstatusLines 15

Checkonly the filing stat us t hat applies to you. In genera l, your filing sta tusdepends on whether you are considered single or married. The filing statuses arelisted below. The one that will usually give you the highest tax is listed first andthe ones t hat will usua lly give you t he lowest ta x are listed last .

Married filing a separate return

Single

Head of household

Married filing a joint return or qualifying widow(er) with dependent child

If more than one filing status applies to you, choose the one that will give youthe lowest ta x.

Line 1 Sin gle . You may check the box on line 1 if an y of the following was true onDecember 31, 1991:

You were never married, or

You were legally separated, according to your state law, under a decree ofdivorce or of separate maintenance, or

You were widowed before January 1, 1991, and did not remarry in 1991.

If you had a child living with you, you may be able to take the earned incomecredit on line 28c. See the Schedule EIC instructions that begin on page 56 tofind out if you can take the credit.

Li n e 2 Ma rr ie d fi li n g jo i n t r e tu r n . You may check the box on line 2 if an y of thefollowing is true:

You were married as of December 31, 1991, even if you did not live with yourspouse at the end of 1991, or

Your spouse died in 1991 and you did not remarry in 1991, or

Your spouse died in 1992 before filing a 1991 ret ur n.

A husband and wife may file a joint return even if only one had income or ifthey did not live together all year. However, both persons must sign the returnand both are responsible. This means t hat if one spouse does not pay th e ta xdue, the other may have to. If you file a joint return for 1991, you may not, afterthe due date for filing that return, amend that return to file as married filing aseparate return.

Nonresiden t a l iens and du al -status a l iens . You may be able to file a jointretu rn. Get Pub. 519 for details.


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Li n e 3 Ma rr ie d fi li n g s e p a ra t e r e tu r n . If you file a separate return, you willgenerally pay more tax than if you file a joint return. Also, if you file a separatereturn, the following apply:

You cannot take the standard deduction if your spouse itemizes deductionson Schedule A of Form 1040.

You cannot take the credit for child and dependent care expenses in mostcases.

You cannot take the earned income credit.

You cannot take the credit for the elderly or the disabled if you lived withyour spouse at any time in 1991.

You may have to include in income up to one-half of any social security orequivalent railroad retirement benefits you received in 1991.

You cannot exclude the interest from series EE U.S. savings bonds issuedafter 1989, even if you paid higher education expenses in 1991.

Genera lly, you r eport only your own in come, exempt ions, dedu ctions, a ndcredits. Different rules apply to people in community property states. (Seepage 24.)

But you may be able to file as head of household if you had a child living withyou, and you lived apart from your spouse during the last 6 months of 1991. SeeMarried persons w ho l ive apart on page 19.

Lin e 4 He ad of ho us eh old . This filing status is for unmarried individuals who providea home for certain other persons. Also, if you were married in 1991, had a childliving with you, and lived apart from your spouse during the last 6 months ofthe year, you may be able to file as head of household. See Married pe rsonswh o l ive apart on page 19. You may check the box on line 4 if you wereunmarried as of December 31, 1991, and:

You paid over half the cost of keeping up a home that was the main home ofyour parent whom you can claim a s a dependent. Your parent did not h aveto live with you in your home; or

You paid over half the cost of keeping up a home in which you lived and inwhich one of th e following also lived for m ore t ha n 6 mont hs (temporar yabsences, such as for school or vacations, are counted as time lived in thehome):

1. Your unmarried child, gra ndchild, great -gra ndchild, etc., stepchild, oradopted child. This child does not have to be your dependent. But yourfoster child must be your dependent.

2. Your married child, gra ndchild, great -gra ndchild, etc., stepchild, or

adopted child. This child must be your dependent. But, if your marriedchilds other pa rent claims him or h er as a dependent under the rules forChildren of divorced or se parated parents on page 22, this childdoes not have to be your dependent.

3. Any other r elative whom you can claim as a dependent. For the definitionof a relative, see the instructions for line 6c.

To find out what is included in the cost of keeping up a home, get Pub. 501. Tofind out if someone is your dependent, see the instructions for line 6c.


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If the person for whom you kept up a home was born, or died, during 1991, youma y still file as head of household as long as t he home was t ha t per sons ma inhome for the part of the year he or she was alive.

You do not qualify as head of household if your child, parent, or relativedescribed on page 18 is your dependent under the rules for Person supportedby two or more taxpayers (see page 22).

Aid to Families With Dependent Children (AFDC) and other public

ass i stance programs. If you used payments you received under the AFDCprogram or other public assistance programs to pay part of the cost of keepingup your home, you cannot count them as money you paid. But you must includethem in the total cost of keeping up your home to figure if you paid over half ofthe cost.

Married persons w ho l ive apart . Even if you were not divorced or legallyseparated in 1991, you may be considered unmarried and file as head ofhousehold. You may also be able to take the credit for child and dependent careexpenses an d th e earn ed income credit. You can ta ke th e sta ndar d deductioneven if your spouse item izes deductions. You ma y check t he box on line 4 ifa llfive of th e following a pply:

1. You f ile a separate retur n from your spouse, and

2. You lived apart from your spouse during the last 6 months of 1991, and

3. You pa id over half the cost of keeping up your home for 1991, and

4. Your home was th e ma in home of your child, stepchild, adopted child, orfoster child for more than 6 months of 1991, and

5. You claim th is child as your dependent or th e childs other parent claims himor h er un der th e rules for Children of divorced or se parated parents onpage 22.

Li ne 5 Qu a li fy in g w i d ow (e r). If your spouse died in 1989 or 1990 and you did not

remarry in 1991, you may be able to file as a qualifying widow(er) withdependent child and use joint return tax rates for 1991. You may check the boxon line 5 ifall four of the following apply:

1. You have a child, adopted child, stepchild, or foster child whom you claim a sa dependent, and

2. This child lived in your home for a ll of 1991 (except for t emporar y absences),and

3. You pa id over half the cost of keeping up your home for t his child, and

4. You could have filed a joint ret urn with your spouse the year he or she died,even if you didnt actually do so.

Do not claim an exemption for your spouse.

If your spouse died in 1991, you may not file as qualifying widow(er) withdependent child. Instead, see the instructions for line 2.

If you cannot file as qualifying widow(er) with dependent child, read theinst ru ctions for line 4 to see if you can file as h ead of househ old. You m ust fileas single if you cannot file as qualifying widow(er) with dependent child, marriedfiling joint ret ur n, or h ead of household.


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Step 3

Figure yourexemptionsLines 6a6e

For each exemption you can take, you can deduct $2,150 on line 21.

Line 6a Check the box on line 6a unless your parent (or someone else) can claim you asa dependent on his or her tax return. For example, do not check the box on line6a if your parents (or someone else) could claim you as a dependent on theirret ur n (even if they chose not t o claim you).

Line 6b If you file a joint return and your spouse cannot be claimed as a dependent onan other per sons ret ur n, check t he box on line 6b. If you a re filing a sepa ra tereturn, you can take an exemption for your spouse only if your spouse is notfiling a r eturn , had no income, and cann ot be claimed as a dependent on an otherpersons r etu rn . If you were divorced or legally separ at ed by December 31, 1991,you cannot take an exemption for your former spouse. If, at the end of 1991,your divorce was n ot fina l (an int erlocut ory decree), you ar e considered ma rr iedfor the whole year.

Death of your spouse. If your spouse died in 1991 and you did not remarry byDecember 31, 1991, check the box on line 6b if you could have taken anexemption for your spouse on the date of death. For other filing instructions, seeWhat if a person died? on page 8.

Nonres ident a l ien spouse . If you do not file a joint return, you can take anexemption for your nonresident alien s pouse only if your spouse h ad no incomefrom U.S. sources and is not the dependent of another person. Check the box online 6b if you can ta ke a n exempt ion for your spouse a nd en ter NRA to th eright of the word Spouse on line 6b.

Lin e 6c De pe nde nts . You can take an exemption for each of your dependents who wasalive during some part of 1991. This includes a baby born in 1991 or a personwh o died in 1991. Any pers on who meets all five of the following tests qualifiesas your dependent.

Test 1Relations hip

The person must be your relative (see Except ion below). Th e following ar econsidered your relatives:

Your child, stepchild, adopted child; a child who lived in your home a s afamily member, if placed with you by an authorized placement agency forlegal adoption; or a foster child (any child who lived in your home a s a familymember for the whole year).

Your gra ndchild, great-gran dchild, etc.

Your son-in-law, dau ghter -in-law.

Your parent , stepparent , parent -in-law.

Your grandpar ent, great-grandparen t, etc.

Your brother, sister, half brother, half sister, stepbrother, stepsister,brother -in-law, sist er-in-law.

If relat ed by blood, your au nt , un cle, neph ew, niece.

Any relationships established by marriage are not treated as ended by divorce ordeath.


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Except ion. A person who lived in your home as a family member for the entireyear can also be considered a dependent. But the relationship m ust not violatelocal law.

Test 2Married perso n

If the person is married, he or she cannot file a joint return. However, if neitherth e person nor t he per sons spouse is required t o file, but th ey file a joint ret ur nonly to get a refund of all tax withheld, you may claim him or her if the other

four tests are met.

Test 3Citizen or resident

The person mu st be on e of the following:

A U.S. citizen or r esident alien, or

A resident of Canada or Mexico, or

Your adopted child who is not a U.S. citizen, but who lived with you all yearin a foreign country.

Test 4Incom e

Generally, the persons gross income must be less than $2,150. Gross incomedoes not include nontaxable income, such as welfare benefits or nontaxable socialsecurity benefits. Income earned by a permanently and totally disabled personfor s ervices perform ed at a shelt ered worksh op school is genera lly not includedfor purposes of the income test. Get Pub. 501 for details.

Except ion for your ch i ld. Your child can have gross income of $2,150 or moreif:

e i ther your child was unde r age 19 at the end of 1991,

or your child was unde r age 24 at the end of 1991 an d was a s tudent .

Your child was a student if he or she

Was enrolled as a full-time student at a school during any 5 months of 1991,or

Took a full-time, on-farm training course during any 5 months of 1991. Thecour se h ad to be given by a school or a sta te, coun ty, or local governm entagency.

A school includes techn ical, t ra de, an d m echanical schools. It does not includeon-the-job training courses or correspondence schools.

Test 5Sup port

The genera l rule is th at you h ad t o provide over ha lf th e persons supp ort in

1991. If you file a joint ret ur n, su pport can come from eith er spouse. If youremarried, the support provided by your new spouse is treated as support comingfrom you. For exceptions to the support test, see Children of divorced orseparated parents and Pe rson supported by two or more taxpayers onpage 22.

Support includes food, a place to live, clothing, medical and dental care, andeducat ion. Support a lso includes items su ch as a car a nd furnitu re, but only ifth ey are for t he per sons own u se or benefit. In figur ing total su pport:

Use the actual cost of these items. However, you should figure the cost of aplace to live at its fair rental value.


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Include money used by the person for his or her own support, even if thismoney was not taxable. Examples are gifts, savings, social security andwelfare benefits, and other public assistance payments. This support istreated as not coming from you.

Support does not include items such as income tax, social security and Medicaretax, life insurance premiums, scholarship grants, or funeral expenses.

If you care for a foster child, see Pub. 501 for special rules that apply.

Children of divorced or separated paren ts . Special rules apply to determineif the support test is met for children of divorced or separated parents. The rulesalso apply to children of parents who did not live together at any time duringthe last 6 months of the year, even if they do not h ave a separ at ion a greement.For these ru les, a custodial parent is the parent who had custody of the childfor most of the year. A noncustodial parent is the parent who had custody forthe shorter period or who did not have custody at all.

The general rule is tha t t he custodial parent is treat ed as ha ving provided overha lf of th e childs support if both par ent s together paid m ore tha n h alf of thechilds support. This means tha t t he custodial par ent can claim th e child as adependent if the other dependency tests a re also met.

But if you are the noncustodial parent, you are treated as having provided overha lf th e childs support a nd can claim th e child as a dependen t if both pa ren tstogether pa id over ha lf of th e childs support , the oth er dependen cy test s ar emet, and e i ther 1 or 2 below applies:

1. The custodial parent agrees not to claim th e childs exemption for 1991 bysigning Form 8332 or a similar stat ement. But you (as t he noncustodialparent) must at ta ch t his signed Form 8332 or similar st at ement to yourreturn. Instead of attaching Form 8332, you can attach a copy of certainpages of your divorce decree or s epar at ion agreem ent , if it went into effectafter 1984 (see Children w ho didnt l ive with you due to divorce orseparat ion on page 23), or

2. Your divorce decree or writt en separa tion a greement went int o effect before

1985 and it stat es tha t you (the noncustodial parent) can claim th e child as adependent . But you must ha ve given at lea st $600 for t he childs support in1991. Also, you must check the pre-1985 agreement box on line 6d. This ruledoes not apply if your decree or agreement was changed after 1984 to saytha t you cann ot claim th e child as your dependent.

Pe rson supported by two or more taxpayers . Even if you did not pay overha lf of an oth er per sons support , you m ight st ill be able to claim him or h er a s adependent ifall five of the following apply:

1. You a nd one or m ore other eligible person(s) together paid over half ofan oth er persons support, and

2. You paid over 10% of tha t persons support, an d

3. No one alone paid over half of tha t persons support, an d

4. Tests 1 through 4 on pages 20 and 21 are met, and

5. Ea ch eligible person who paid over 10% of support completes Form 2120, andyou a tt ach th ese forms to your retu rn. The form stat es th at only you willclaim the person as a dependent for 1991.

An eligible person is someone who could have claimed another person as adependen t except t ha t h e or sh e did not pa y over ha lf of th at persons support .


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After figuring out who you can claim as a dependent, fill in the columns on line6c. If you ha ve more th an seven dependents, at ta ch a stat ement to your r etur n.Give the same information as in columns (1) through (5) for each dependent.

Column (1). Enter the name of each dependent.

Column (2). If your dependent was under age 1 on December 31, 1991, put acheckma rk in column (2).

Column (3). Any dependent age 1 or older must have a social security number.You must enter that number in column (3). If you do not enter it or if thenumber is wrong, you may have to pay a $50 penalty. If your dependent does nothave a number, he or she should apply for one by filing Form SS-5 with yourlocal Social Securit y Administ ra tion (SSA) office. It usu ally ta kes a bout 2 weeksto get a nu mber . If your child wont h ave a n um ber by the t ime you a re rea dy tofile your ret ur n, a sk t he S SA to give you a Form SSA-5028. When you file yourret ur n, ent er applied for in column (3). If you got a Form SSA-5028, att ach acopy of it to your return. If your dependent lives in Canada or Mexico, see Pub.501 for details on how to get a social security number.

Column (4). En ter your dependen ts rela tionship t o you. For exam ple, if thedependen t is your child, enter son or dau ghter .

Column (5). Ent er th e num ber of month s tha t your dependent lived with you in1991. (Do not enter more than 12.) Count temporary absences such as school orvacation as time lived in your home. If your dependent was born, or died, in1991, ent er 12 in t his column . If your dependen t lived in Ca na da or Mexicodur ing 1991, dont pu t a nu mber in t his column . Instea d, enter t he lett er F (forforeign).

Children w ho didnt l ive with you due to divorce or separat ion. If you areclaimin g a child who didnt live with you u nder th e ru les for Children of divorced or separated parents on page 22, enter the total number of suchchildren on the line to the right of line 6c labeled No. of your children on 6cwho: didnt live with you due to divorce or separation. If you put a number onth is line, you must do one of the following:

Check the box on line 6d if your divorce decree or written separationagreement was in effect before 1985, and it st ates tha t you can claim t hechild as your dependent.

Attach Form 8332 or similar statement to your return. If your divorce decreeor separation agreement went into effect after 1984 and it unconditionallysta tes th at you can claim the child as your dependent, you m ay at ta ch a copyof the following pages from the decree or agreement instead of Form 8332:

1. Cover page (write the other par ents social security num ber on th is page),and

2. The page tha t unconditionally stat es you can claim the child as yourdependent, and

3. Signature page showing the date of the agreement.

Other dependent chi ldren. Enter the total number of children who did notlive with you for reasons other than divorce or separation on the line labeledNo. of oth er d ependent s listed on 6c. Include depen dent children wh o lived inCanada or Mexico during 1991.


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Step 4

Figure your totalincomeLines 714

Rounding off to w hole dol lars

You may find it easier to do your return if you round off cents to the nearestwhole dollar. You can drop amounts tha t are less tha n 50 cents. For example,$129.39 becomes $129. Increase amounts that are 50 cents or more to the nextwhole dollar. For example, $235.50 becomes $236. If you do round off, do so forall amounts. However, if you have to add two or more amounts to figure the

amount to enter on a line, include cents when adding and only round off thetotal.

Example. You received two W-2 forms, one showing wages of $5,009.55 and oneshowing wages of $8,760.73. On Form 1040A, line 7, you would enter $13,770($5,009.55 + $8,760.73 = $13,770.28).

Refunds of state or local income taxes

If you received a refund, credit, or offset of state or local income taxes in 1991,the state or other taxing authority may send you a Form 1099-G. This form willshow th e a mount of this refund, credit, or offset. You do not have to include thisamount in your income for 1991 if, in the year the tax was paid to the state orother taxing authority, you filed:

Form 1040EZ, or

Form 1040A, or

Form 1040 and you did not i temize deductions on Schedule A (Form 1040).

If the amount shown on Form 1099-G was for a tax you deducted as an itemizeddeduction on Form 1040, you may have to report part or all of the amount shownon Form 1099-G as income on Form 1040 for 1991. See Tele-Tax (topic no. 205)on page 71 or get Pub. 525 for details.

Specia l rules for people in commun ity property states

Married couples living in community property states must follow state law todetermine wha t is commu nity income a nd wha t is individual income.Community property states are Arizona, California, Idaho, Louisiana, Nevada,New Mexico, Texas, Washington, and Wisconsin.

Pub. 555 explains the rules for couples living in community property states. Ingenera l, the special r ules for reportin g only your own in come a pply ifall threeof th e following ar e t ru e:

1. You and your spouse lived apart all year , and

2. You do not f ile a joint return, and

3. None of the commu nity income you earn ed was tra nsferred to your spouse.

Line 7 Show the total of your income from wages, salaries, and tips. This should beshown in Box 10 of your W-2 form from your employer. For a joint return, besure to include your spouses income on line 7.

Also include on line 7 disability pensions if you have not reached the minimumretirement age set by your employer. Disability pensions received after you reachyour em ployers minim um r etirem ent a ge and other pen sions sh own on Form1099-R (other than payments from an IRA) are reported on lines 11a and 11b ofForm 1040A. Payments from an IRA are reported on lines 10a and 10b.


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If you dont h ave a W-2 form by J an ua ry 31, 1992, as k your em ployer for one. Ifyou dont get it by February 17, call the toll-free telephone number for your arealisted on pa ge 69. You will be asked for your employers n am e, addr ess, an d, ifknown, identification number. Even if you dont get a W-2 form from youremployer, you m ust still report your ear nings. If you lose your W-2 form or it isincorr ect, a sk your em ployer for a new one.

Tip income . Be sure to report all tip income you actually received, even if it isnot included in Box 10 of your W-2 form (s). But you m ust use Form 1040 and

Form 4137 instead of Form 1040A if (1) you received tips of $20 or more in anymonth and did not report the full amount to your employer OR (2) your W-2form (s) shows allocat ed t ips t ha t you mu s t report as income. You must report asincome t he a mount of allocated t ips shown on your W-2 form(s) un less you canprove a smaller amount with adequate records. Allocated tips should be shownin Box 7 of your W-2 form(s). They are not included in Box 10 of your W-2form(s).

Form 4137 is used to figure the social security and Medicare tax on unreportedtips. If you reported the full amount to your employer but the social security andMedicare tax was not withheld, you are still required to pay the taxes. For moredetails on tips, get Pub. 531.

Employer-provided vehicle . If you used an employer-provided vehicle for both

personal and business purposes and 100% of the annual lease value of thevehicle was included in the wages box (Box 10) of your W-2 form, you may beable to deduct the business use of the vehicle. But you must use Form 1040 andForm 2106 to do so. (The total annual lease value of the vehicle should be shownin Box 23 of your W-2 form, or on a separate statement.) For more details, getPub. 917.

Excess sa lary deferrals . If you chose to have your employer contribute part ofyour pay to certa in retiremen t plan s (such a s a 401(k) plan or t he Federa l ThriftSavings Plan) instead of having it paid to you, your W-2 form should have theDeferr ed compen sat ion box in Box 6 checked. The am ount deferr ed sh ould beshown in Box 17 of your W-2. The total amount that may be deferred for 1991under all plans is generally limited to $8,475. But if amounts were deferredunder a t ax-sheltered an nuity plan, th e limit m ay be higher tha n $8,475. GetPub. 575 for details. If the total amount deferred exceeds these limits, you mustuse Form 1040.

Scholarship and fel lowship grants . If you received a scholarship orfellowship tha t wa s gran ted after August 16, 1986, part or all of it may beta xable even if you didn t receive a W-2 form .

If you were a degree candidate, the amounts you used for expenses other thantuition and course-related expenses are taxable. For example, amounts used forroom, board, and travel are taxable. If you were not a degree candidate, the fullamount of the scholarship or fellowship is taxable. Add the taxable amount notreported on a W-2 form to any other amounts on line 7. Then, write SCH andthe taxable amount not reported on a W-2 form in the space to the left of line 7.

Employer-provided de pende nt care benef i ts (DCB). If you received benefitsfor 1991 under your employers depen dent care pla n, you ma y be able t o excludepart or all of them from your income. But you must use Schedule 2 to do so. (Thebenefits should be shown in Box 22 of your W-2 form(s).) First, go to Schedule 2and fill in Parts I and III. Include any taxable benefits from line 24 of thatschedule on Form 1040A, line 7. In t he spa ce to the left of line 7, writ e DCB.

Caution: If you h ave a child w ho was born in 1991 and you earned less than$21,250, you m ay be able to take th e extra credit for a child born in 1991 onSchedu le EIC. But you cannot tak e the extra creditand the exclusion ofemployer-provided dependent care benefits for the same child. To see which would


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benefit you more, readA chan ge to note in the instructions for Schedule 2 onpage 51.


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Lin e 8a Ta xa ble i nt ere s t. Report all of your taxable interest income on line 8a even if itis $400 or less. If the t otal is over $400 or you a re claimin g th e exclusion ofinterest from series EE U.S. savings bonds issued after 1989, first fill outSchedule 1, Part I (see page 50).

Include taxable interest from banks, savings and loan associations, moneymarket certificates, credit unions, savings bonds, seller-financed mortgages, etc.Also include any interest you received or that was credited to your account soyou could with dra w it, even if it wa snt en ter ed in your passbook. Int erest

credited in 1991 on deposits that you could not withdraw because of thebankruptcy or insolvency of the financial institution may not have to be includedin your 1991 income. For details, get Pub. 550.

But you must use Form 1040 ifan y of the following applies:

You are reporting original issue discount (OID) in an amount more or lessthan the amount shown on Form 1099-OID, or

You received or paid accrued interest on securities transferred betweeninterest payment dates, or

You acquired taxable bonds after 1987 and are electing to reduce the interestincome on the bonds by any amortizable bond premium.

Each payer should send you a Form 1099-INT or Form 1099-OID showinginterest you must report. A copy of the form is also sent to the IRS. Even if youdid not receive a Form 1099-INT or Form 1099-OID, you must report all taxableinterest.

If you received a 1991 Form 1099-INT for U.S. savings bond interest thatincludes amounts you reported before 1991, see Pub. 550.

If you r eceived interest as a nominee (tha t is, in your nam e but the int erestactually belongs to someone else), see the Schedule 1 instructions on page 50.

Be sure each payer of interest income has your correct social security number.Otherwise, the payer may withhold 20% of the interest income (backup

withh olding). You ma y also be subject to pena lties.For more information, see Tele-Tax (topic no. 203) on page 71 or Pub. 550.

Li ne 8b Ta x-e x e mp t i n te r es t. If you received any tax-exempt interest, such as frommunicipal bonds, report it on line 8b. Include on line 8b any exempt-interestdividends from a mutual fund. Do not report interest earned on your IRA on line8b.

You should not have received a Form 1099-INT for tax-exempt interest. But ifyou did, see the Schedule 1 instructions on page 50.

Line 9 Divide nds . Report your total dividends on line 9 even if they total $400 or less.

If the total is over $400, first fill out Schedule 1, Part II (see page 51). Dividendsare distributions of money, stock, or other property that corporations pay tostockholders. Each payer should send you a Form 1099-DIV. A copy of the formis also sent to the IRS. Even if you did not receive a Form 1099-DIV, you mustreport all taxable dividends.

But you must use Form 1040 if you had capital gain or nontaxable distributions.

If you received dividends as a nominee (that is, in your name but the dividendsactually belong to someone else), see the Schedule 1 instructions on page 51.


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Be sure each payer of dividends has your correct social security number.Otherwise, the payer may withhold 20% of the dividend income (backupwithh olding). You ma y also be subject to pena lties.

For more information, get Pub. 550.

Li n e s 1 0a a n d 1 0b IR A d i st ri bu t io n s . Use lines 10a and 10b to report payments (distributions)you received from your individual retirement arrangement (IRA). This includesregular distributions, early distributions, rollovers, and any other money orproperty you r eceived from your IRA account or an nu ity. You should r eceive aForm 1099-R showing the amount of your distribution. Attach Form 1099-R toForm 1040A if any Federal income tax was withheld from your distribution.

But you must use Form 1040 if you owe an additional tax on an earlydistribution from your IRA. For details, get Pub. 590. If the total amount of theearly distribution was rolled over, you do not owe this tax.

If you made any nondeductible contributions to your IRA for 1991 or an earlieryear or you r olled your IRA distribut ion over int o another IRA, see below. Don ot use lines 10a or 10b t o report a rollover from a qua lified employers plan toan IRA. Instead, see the instructions for lines 11a and 11b.

If your IRA distribution is fully taxable, enter it on line 10b; do not make an

entry on line 10a. If only part is taxable, enter the total distribution on line 10aand the taxable part on line 10b.

Nondeduct ible contribut ions. If you ma de n ondeductible contribut ions forany year, part of your IRA distribution may be nontaxable.

If you made any nondeductible contributions for 1991, get Pub. 590 and Form8606 to figure the taxable part of your IRA distribution. Enter the totaldistribution on line 10a an d th e ta xable par t on line 10b.

If all of your nondeductible cont ribut ions were m ade for years before 1991, useForm 8606 to figure the taxable part of your distribution by following theinstructions for line 11 of that form. Enter the total distribution on line 10a andthe t axable part on line 10b.

Rollovers. A rollover is a tax-free transfer of cash or other assets from oneretirement program to another. Use lines 10a and 10b to report a rollover fromone IRA to another IRA. Enter the total distribution on line 10a. If the total online 10a was rolled over, enter zero on line 10b. If the total was not rolled over,enter the part not rolled over on line 10b. But if you ever made nondeductiblecontributions to any of your IRAs, use Form 8606 to figure the taxable part toenter on line 10b. For more details, see Pub. 590.

Li n es 11a a n d 11 b P e n s io n s an d a nn u it ie s . Use lines 11a a nd 11b to report pension a nd a nnu itypayments you received (including disability pensions received after you reach theminimum retirement age set by your employer). Also, use these lines to reportpayments (distributions) from profit-shar ing plans, r etirement plans, an d

employee-savings pla ns. See page 29 for inform at ion on r ollovers a nd lump-sumdistr ibutions. You should receive a F orm 1099-R sh owing th e am oun t of yourpension or annuity. Attach Form 1099-R to Form 1040A if any Federal incometax was withheld from your pension or annuity.

Do not use lines 11a and 11b to report any social security or railroad retirementbenefits shown on Forms SSA-1099 and RRB-1099. Instead, see the instructionsfor lines 13a and 13b.


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Caution: Certain transactions, such as loans against your interest in a qualifiedplan, may be treated as taxable distributions and may also be subject toadditional taxes. For details, get Pub. 575. If you owe an additional tax, you mustuse Form 1040.

Ful ly taxable pensions and an nuit ies . If your pension or annuity is fullytaxable, enter it on line 11b; do not make an entry on line 11a. Your pension orann uity payments a re fully taxable ife i ther of the following applies:

You did not cont ribut e to t he cost of your pension or an nu ity, or

You used the 3-Year Rule and you got your entire cost back tax free before1991.

Fully taxable pensions a nd a nnu ities also include military r etirement pay shownon Form 1099-R, and any taxable railroad retirement benefits from Box 12 ofForm RRB-1099-R. If you received Form RRB-1099-R a nd an am ount is shown inBox 13 of your form, get Pub. 575 to see how to report your benefits. Forinformation on military disability pensions, get Pub. 525.

Part ia l ly taxable pensions and an nuit ies . If your pension or annuity ispartially taxable and your Form 1099-R does not show the taxable part, youmust use th e General Rule to figure t he ta xable part . The General Rule is

explained in Pub. 939. But if your annuity starting date (defined below) wasafter July 1, 1986, you may be able to use the Simplified General Ruleexplained later to figure the taxable part of your pension or annuity.

If you choose to, you may submit a ruling request to the IRS before the due dateof your return (including extensions) and the IRS will figure the taxable part foryou for a $50 fee. For details on how to do this, see Pub. 939.

If your Form 1099-R shows a ta xable am ount , you m ay report t hat amount online 11b. But you may use the General Rule or, if you qualify, the SimplifiedGeneral Rule to see if you can report a lower taxable amount.

Once you have figured the taxable part of your pension or annuity, enter thatamount on line 11b and the total amount on line 11a.

Annuity start ing date. Your annuity starting date is the later of:

1. The first day of the first period for which you receive a payment fromthe plan, or

2. The date on which t he plans obligations became fixed.

Simpl i fied Gen eral Rule. Using this method will usually result in at least asmuch of the pension or a nnu ity being tax free each year as u nder t he GeneralRule or as figured by the IRS. You qualify to use this simpler method if all fourof the following apply:

1 . Your annuity s tar t ing date was after July 1, 1986, and

2. The pension or ann uity payments a re for (a) your life or (b) your life and t hatof your beneficiary, and

3. The pension or ann uity payments are from a qualified employee plan, aqualified employee annuity, or a tax-sheltered annuity, and

4. At th e time the pension or an nuity payments began, either you were underage 75, or if you were 75 or older, the number of years of guaranteedpayments was fewer than 5.


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If you qualify, use the worksheet on page 30 to figure the taxable part of yourpension or annuity. But if you received U.S. Civil Service retirement benefitsand you chose the lump-sum credit option, use the worksheet in Pub. 721instead of the one on page 30. If you are a beneficiary entitled to a death benefitexclusion (see below), add the exclusion to the amount you enter on line 2 of theworksheet even if you received a Form 1099-R showing a taxable amount. (Thepayer of the annuity cannot add the death benefit exclusion to your cost whenfiguring the taxable amount.) Attach a signed statement to your return statingtha t you are entitled to a dea th benefit exclusion. For more details on the

Simplified General Rule, see Pub. 575 or Pub. 721.

Age at annuity start ing date. If you are the retiree, use your age on thean nu ity sta rt ing date. If you ar e the su rvivor of a ret iree, use the ret irees age onhis or her annuity starting date. If you are the beneficiary of an employee whodied, get Pub. 575. If there is more than one beneficiary, see Pub. 575 or Pub.721 to figure each ben eficiarys t axable a mount .

Changing methods. If your annuity starting date was after July 1, 1986, youmay be able to change from the General Rule to the Simplified General Rule (orthe other way around). For details, see Pub. 575 or Pub. 721.

Death bene f it exclusion. If you are the beneficiary of a deceased employee ordeceased form er employee, am ounts paid to you by, or on behalf of, an employer

because of the death of the employee may qualify for a death benefit exclusion ofup to $5,000. If you are entitled to this exclusion, add it to the cost of thepension or annuity. Special rules apply if you are the survivor under a joint andsurvivors annuity. For details, see Pub. 575.

Rollovers. A rollover is a tax-free transfer of cash or other assets from oneretirement program to another. Use lines 11a and 11b to report a rollover fromone qualified em ployers plan to an other, or t o an IRA.

Distributions that may be rolled over are generally reported to you on Form1099-R. Enter the total distribution on line 11a. If the total on line 11a (minusany contributions that were taxable to you when made) was rolled over, enterzero on line 11b. Other wise, enter the ta xable part of the distribution tha t wasnot r olled over on line 11b. Special r ules a pply to par tia l rollovers of propert y.

For more details on rollovers, including distributions under qualified domesticrelations orders, see Pub. 575.

Lump-sum distribut ions. If you received a lump-sum distribution from aprofit-sharing or retirement plan, your Form 1099-R should have the Totaldistribution box in Box 2b checked. Enter the total distribution on line 11a andthe t axable part on line 11b.

You may pay less tax on the distribution ife i ther of the following applies. Butyou must use Form 1040 to do so.

You choose to report the amount, if any, shown in Box 3 of your Form 1099-Ras a long-term capital gain on Schedule D (Form 1040).

You were born before 1936, you m eet cert ain oth er conditions, a nd youchoose to use Form 4972 to figure the tax on any part of the distribution.You ma y also be able t o use F orm 4972 if you ar e t he ben eficiary of adeceased employee who was born before 1936 and was age 50 or older on thedate of death. For details, get Form 4972.

You must also use Form 1040 if you owe an additional tax on an earlydistribution from a qualified retirement plan. See Pub. 575 for details. If thetotal amount of the early distribution was rolled over, you do not owe this tax.


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Worksheet for Simplified General RuleLines 11a and 11b(keep for your records)

Worksheet forSimplifiedGeneral Rule

1. Enter the total pension or annuity payments received this year.Also enter this amount on Form 1040A, line 11a.

2. Enter your cost in the plan at the annuity starting date plus anydeath benefit exclusion.

3. Age at annuity starting date(see instructions on page 29): Enter:

55 and under 300

56-60 260

61-65 240

66-70 170

71 and older 120

Divide line 2 above by the number on line 3.Enter the result.

4.

5.

6.

7.

8.

9.

Note: If you had more than one partially taxable pension or annuity, figure thetaxable part of each separately. Enter the total of the taxable parts on Form1040A, line 11b. Enter the total pension or annuity payments received in 1991 onForm 1040A, line 11a.

Multiply line 4 above by the number of months for which thisyears payments were made. Enter the result. If your annuitystarting date was before 1987, also enter this amount on line 8;

skip lines 6 and 7. Otherwise, go to line 6.

Enter the amount, if any, recovered tax free in years after 1986.

Subtract line 6 from line 2.

Compare the amounts on lines 5 and 7 above. Enter the smallerof the two amounts here.

Taxable amount. Subtract line 8 from line 1. Enter the result, butnot less than zero. Also enter this amount on Form 1040A, line11b. If your Form 1099-R shows a larger amount, use the amount

on this line instead of the amount from Form 1099-R.

1.

2.

3.

4.

5.

6.

7.

8.

9.


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Li ne 12 U n e mp lo ym e n t c o mp e n sa ti on . Report the unemployment compensation youreceived on line 12. By J an ua ry 31, 1992, you should r eceive Form 1099-G. Thisform shows the total amount paid to you during 1991.

If you received an overpayment of unemployment compensation in 1991 and yourepaid an y of it, subtr act th e am ount you r epaid in 1991 from th e total a mountyou received. Enter the result on line 12. Write Repayment and the amountyou repaid in the space to the left of line 12.

Do not include on line 12 any supplemental unemployment benefits you receivedfrom a company-financed supplemental unemployment benefit fund. Instead,report these benefits as wages on line 7. If you pay back these supplementalunemployment benefits in a later year because you receive payments under theTrade Act of 1974, you can deduct the repayment. But you must use Form 1040to do so. For more details, get Pub. 525.

Li n e s 13 a a n d 13 b S o c ia l s e c u ri ty b e n e fi ts . Social security an d equivalent railroad ret irementbenefits you receive may be taxable in some instances. Social security benefitsinclude any monthly benefit under title II of the Social Security Act or the partof a tier 1 railroad retirement benefit treated as a social security benefit. Socialsecurity benefits do not include any Supplemental Security Income (SSI)payments.

By January 31, 1992, you should receive a Form SSA-1099 showing in Box 3 thetotal social security benefits paid to you in 1991 and in Box 4 the amount of anybenefits you repaid in 1991. If you received railroad retirement benefits treatedas social securit y, you should receive a F orm RRB-1099. For m ore deta ils, getPub. 915.

Use the worksheet on page 32 to see if any of your benefits are taxable, butplease note the following before you begin.

You will first need t o complet e Form 1040A, lines 7 t hr ough 12, and 15c ifthey apply to you, to figure the taxable part, if any, of your benefits.

If you made IRA contributions for 1991 and you were covered by aretirement plan a t work, use the worksheets in Pub. 590 instea d of the oneon page 32 to see if any of your social security benefits are taxable and tofigure your IRA deduction.

If you file Form 8815, use the worksheet in Pub. 915 instead of the one onpage 32.

If you repaid any benefits in 1991 and your total repayments (Box 4) weremore t ha n your tota l benefits for 1991 (Box 3), do not use t he worksheet onpage 32. None of your benefits are taxable for 1991. You may be able to takean itemized deduction for part of the excess repayments if they were forbenefits you included in gross income in an earlier year. But you must useForm 1040 to do so. See Pub. 915.


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Social SecurityBenefits Worksheet

Social Security Benefits WorksheetLines 13a and 13b (keep for your records)

1. Enter the amount from Box 5 of all yourForms SSA-1099 and Forms RRB-1099.

Note:If line 1 above is zero or less, stop here; none of

your benefits are taxable. Otherwise, go to line 2.

Divide line 1 above by 2.2.

3. Add the amounts on Form 1040A, lines 7, 8a, 8b, 9, 10b, 11b,and 12. Do not include here any amounts from Box 5 of FormsSSA-1099 or RRB-1099.

4. Add lines 2 and 3.

Enter the amount, if any, from Form 1040A, line 15c.5.

Subtract line 5 from line 4.6.

7.

8. Subtract line 7 from line 6. Enter the result, but not less thanzero.

Note:If line 8 is zero, stop here. None of your benefits are taxable. Do not enter

any amounts on lines 13a or 13b. But if you are married filing a separate returnand you didnot live with your spouse at any time in 1991, enter -0- on line 13b.Be sure you en tered D to th e left of lin e 13a. If l ine 8 is m ore than zero, go toline 9.

9. Divide line 8 above by 2.

10. Taxable social security benefits.

First, enter on Form 1040A, line 13a, the amount from line 1above.

us internal revenue service: i1040a--1991

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