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IRS Tax Map 2008
Current IRS Tax Map

taxmap/instr/i1040gi-010.htm#TXMP21f594b2

Income(p21)


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taxmap/instr/i1040gi-010.htm#TXMP5714bee0

Foreign-Source Income(p21)


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You must report unearned income, such as interest, dividends, and pensions, from sources outside the United States unless exempt by law or a tax treaty. You must also report earned income, such as wages and tips, from sources outside the United States.
If you worked abroad, you may be able to exclude part or all of your foreign earned income. For details, see Pub. 54 and Form 2555 or 2555-EZ.
taxmap/instr/i1040gi-010.htm#TXMP1220f11c

Foreign retirement plans.(p21)

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If you were a beneficiary of a foreign retirement plan, you may have to report the undistributed income earned in your plan. However, if you were the beneficiary of a Canadian registered retirement plan, see Form 8891 to find out if you can elect to defer tax on the undistributed income.
Report distributions from foreign pension plans on lines 16a and 16b.
taxmap/instr/i1040gi-010.htm#TXMP44f33cff

Foreign accounts and trusts.(p21)

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You must complete Part III of Schedule B if you:
taxmap/instr/i1040gi-010.htm#TXMP7ca78a3b

Chapter 11 Bankruptcy Cases(p21)


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If you are a debtor in a chapter 11 bankruptcy case, income taxable to the bankruptcy estate and reported on the estate's income tax return includes:
Because this income is taxable to the estate, do not include this income on your own individual income tax return. The only exception is for purposes of figuring your self-employment tax. For that purpose, you must take into account all your self-employment income for the year from services performed both before and after the beginning of the case. Also, you (or the trustee, if one is appointed) must allocate between you and the bankruptcy estate the wages, salary, or other compensation and withheld income tax reported to you on Form W-2. A similar allocation is required for income and withheld income tax reported to you on Forms 1099. You must also attach a statement to your tax return that indicates you filed a chapter 11 case and that explains how income and withheld income tax reported to you on Forms W-2 and 1099 are allocated between you and the estate. For more details, including acceptable allocation methods, see Notice 2006-83, 2006-40 I.R.B. 596, available at 
www.irs.gov/irb/2006-40_IRB/ar12.html.
taxmap/instr/i1040gi-010.htm#TXMP384a3ac1

Community Property States(p21)


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Community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. If you and your spouse lived in a community property state, you must usually follow state law to determine what is community income and what is separate income. For details, see Pub. 555.
taxmap/instr/i1040gi-010.htm#TXMP7d14b185

California domestic partners.(p21)

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A registered domestic partner in California must report all wages, salaries, and other compensation received for his or her personal services on his or her own return. Therefore, a registered domestic partner cannot report half the combined income earned by the individual and his or her domestic partner as a married person filing separately does in California.
taxmap/instr/i1040gi-010.htm#TXMP2b499893

Rounding Off to Whole Dollars(p21)


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You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.
If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.
taxmap/instr/i1040gi-010.htm#TXMP2b49dd52

Line 7(p21)


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taxmap/instr/i1040gi-010.htm#TXMP22b54027

Wages, Salaries, Tips, etc.(p21)


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Enter the total of your wages, salaries, tips, etc. If a joint return, also include your spouse's income. For most people, the amount to enter on this line should be shown in box 1 of their Form(s) W-2. But the following types of income must also be included in the total on line 7.
caution
You may owe social security and Medicare tax on unreported or allocated tips. See the instructions for line 57 on  
page 45.
A higher limit may apply to participants in section 457(b) deferred compensation plans for the 3 years before retirement age. Contact your plan administrator for more information.
If you were age 50 or older at the end of 2009, your employer may have allowed an additional deferral (catch-up contributions) of up to $5,500 ($2,500 for section 401(k)(11) and SIMPLE plans). This additional deferral amount is not subject to the overall limit on elective deferrals.
caution
You cannot deduct the amount deferred. It is not included as income in box 1 of your Form W-2.
*This includes a Roth, SEP, or SIMPLE IRA.
taxmap/instr/i1040gi-010.htm#TXMP740f5bfe

Were You a Statutory Employee?(p22)


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If you were, the Statutory employee box in box 13 of your Form W-2 should be checked. Statutory employees include full-time life insurance salespeople, certain agent or commission drivers and traveling salespeople, and certain homeworkers. If you have related business expenses to deduct, report the amount shown in box 1 of your Form W-2 on Schedule C or C-EZ along with your expenses.
taxmap/instr/i1040gi-010.htm#TXMP36be14a5

Missing or Incorrect Form W-2?(p22)


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Your employer is required to provide or send Form W-2 to you no later than  
February 1, 2010. If you do not receive it by early February, use TeleTax topic 154 (see page 93) to find out what to do. Even if you do not get a Form W-2, you must still report your earnings on line 7. If you lose your Form W-2 or it is incorrect, ask your employer for a new one.
taxmap/instr/i1040gi-010.htm#TXMP62bfa5fe

Line 8a(p22)


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taxmap/instr/i1040gi-010.htm#TXMP6d264db1

Taxable Interest(p22)


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Each payer should send you a Form 1099-INT or Form 1099-OID. Enter your total taxable interest income on line 8a. But you must fill in and attach Schedule B if the total is over $1,500 or any of the other conditions listed at the beginning of the Schedule B instructions apply to you.
Interest credited in 2009 on deposits that you could not withdraw because of the bankruptcy or insolvency of the financial institution may not have to be included in your 2009 income. For details, see  
Pub. 550.
taxtip
If you get a 2009 Form 1099-INT for U.S. savings bond interest that includes amounts you reported before 2009, see Pub. 550.
taxmap/instr/i1040gi-010.htm#TXMP3e3d6204

Line 8b(p22)


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taxmap/instr/i1040gi-010.htm#TXMP182d97c9

Tax-Exempt Interest(p22)


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If you received any tax-exempt interest, such as from municipal bonds, each payer should send you a Form 1099-INT. Your tax-exempt interest, including any exempt-interest dividends from a mutual fund or other regulated investment company, should be included in box 8 of Form 1099-INT. Enter the total on line 8b. Do not include interest earned on your IRA, health savings account, Archer or Medicare Advantage MSA, or Coverdell education savings account.
taxmap/instr/i1040gi-010.htm#TXMP6f71868d

Line 9a(p22)


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taxmap/instr/i1040gi-010.htm#TXMP33589000

Ordinary Dividends(p22)


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Each payer should send you a Form 1099-DIV. Enter your total ordinary dividends on line 9a. This amount should be shown in box 1a of Form(s) 1099-DIV.
You must fill in and attach Schedule B if the total is over $1,500 or you received, as a nominee, ordinary dividends that actually belong to someone else.
taxmap/instr/i1040gi-010.htm#TXMP2f01c1ff

Nondividend Distributions(p22)


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Some distributions are a return of your cost (or other basis). They will not be taxed until you recover your cost (or other basis). You must reduce your cost (or other basis) by these distributions. After you get back all of your cost (or other basis), you must report these distributions as capital gains on Schedule D. For details, see Pub. 550.
taxtip
Dividends on insurance policies are a partial return of the premiums you paid. Do not report them as dividends. Include them in income on line 21 only if they exceed the total of all net premiums you paid for the contract.
taxmap/instr/i1040gi-010.htm#TXMP3b885d3a

Line 9b(p22)


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taxmap/instr/i1040gi-010.htm#TXMP7e4987f5

Qualified Dividends(p22)


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Enter your total qualified dividends on  
line 9b. Qualified dividends are also included in the ordinary dividend total required to be shown on line 9a. Qualified dividends are eligible for a lower tax rate than other ordinary income. Generally, these dividends are shown in box 1b of Form(s) 1099-DIV. See Pub. 550 for the definition of qualified dividends if you received dividends not reported on Form 1099-DIV.
taxmap/instr/i1040gi-010.htm#TXMP62aa392d

Exception.(p22)

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Some dividends may be reported as qualified dividends in box 1b of Form 1099-DIV but are not qualified dividends. These include:
taxmap/instr/i1040gi-010.htm#TXMP2a32f3cf

Example 1.(p22)
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You bought 5,000 shares of XYZ Corp. common stock on July 9, 2009. XYZ Corp. paid a cash dividend of 10 cents per share. The ex-dividend date was July 17, 2009. Your Form 1099-DIV from XYZ Corp. shows $500 in box 1a (ordinary dividends) and in box 1b (qualified dividends). However, you sold the 5,000 shares on August 12, 2009. You held your shares of XYZ Corp. for only 34 days of the 121-day period (from July 10, 2009, through August 12, 2009). The 121-day period began on May 18, 2009 (60 days before the ex-dividend date), and ended on September 15, 2009. You have no qualified dividends from XYZ Corp. because you held the XYZ stock for less than 61 days.
taxmap/instr/i1040gi-010.htm#TXMP50ebeee1

Example 2.(p22)
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Assume the same facts as in Example 1 except that you bought the stock on July 16, 2009 (the day before the ex-dividend date), and you sold the stock on September 17, 2009. You held the stock for 63 days (from July 17, 2009, through September 17, 2009). The $500 of qualified dividends shown in box 1b of Form 1099-DIV are all qualified dividends because you held the stock for 61 days of the 121-day period (from July 17, 2009, through September 15, 2009).
taxmap/instr/i1040gi-010.htm#TXMP3ec63f44

Example 3.(p23)
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You bought 10,000 shares of ABC Mutual Fund common stock on July 9, 2009. ABC Mutual Fund paid a cash dividend of 10 cents a share. The ex-dividend date was July 17, 2009. The ABC Mutual Fund advises you that the portion of the dividend eligible to be treated as qualified dividends equals 2 cents per share. Your Form 1099-DIV from ABC Mutual Fund shows total ordinary dividends of $1,000 and qualified dividends of $200. However, you sold the 10,000 shares on August 12, 2009. You have no qualified dividends from ABC Mutual Fund because you held the ABC Mutual Fund stock for less than 61 days.
taxtip
Be sure you use the Qualified Dividends and Capital Gain Tax Worksheet or the  
Schedule D Tax Worksheet, whichever applies, to figure your tax. Your tax may be less if you use the worksheet that applies. See the instructions for line 44 that begin on page 37 for details.
taxmap/instr/i1040gi-010.htm#TXMP497af5ee

Line 10(p23)


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taxmap/instr/i1040gi-010.htm#TXMP0cc91d9c

Taxable Refunds, Credits, or Offsets of State and Local Income Taxes(p23)


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taxtip
None of your refund is taxable if, in the year you paid the tax, you either (a) did not itemize deductions, or (b) elected to deduct state and local general sales taxes instead of state and local income taxes.
If you received a refund, credit, or offset of state or local income taxes in 2009, you may receive a Form 1099-G. If you chose to apply part or all of the refund to your 2009 estimated state or local income tax, the amount applied is treated as received in 2009. If the refund was for a tax you paid in 2008 and you deducted state and local income taxes on line 5 of your 2008 Schedule A, use the worksheet below to see if any of your refund is taxable.
taxmap/instr/i1040gi-010.htm#TXMP3346a379

Exception.(p23)

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See Itemized Deduction Recoveries in Pub. 525 instead of using the worksheet below if any of the following applies.
  1. You received a refund in 2009 that is for a tax year other than 2008.
  2. You received a refund other than an income tax refund, such as a general sales tax or real property tax refund, in 2009 of an amount deducted or credit claimed in an earlier year.
  3. The amount on your 2008 Form 1040, line 42, was more than the amount on your 2008 Form 1040, line 41.
  4. Your 2008 state and local income tax refund is more than your 2008 state and local income tax deduction minus the amount you could have deducted as your 2008 state and local general sales taxes.
  5. You made your last payment of 2008 estimated state or local income tax in 2009.
  6. You owed alternative minimum tax in 2008.
  7. You could not use the full amount of credits you were entitled to in 2008 because the total credits were more than the amount shown on your 2008 Form 1040, line 46.
  8. You could be claimed as a dependent by someone else in 2008.
  9. You had to use the Itemized Deductions Worksheet in the 2008 Instructions for Schedules A&B because your 2008 adjusted gross income was over $159,950 ($79,975 if married filing separately) and both of the following apply.
    1. You could not deduct all of the amount on the 2008 Itemized Deductions Worksheet, line 1.
    2. The amount on line 8 of that 2008 worksheet would be more than the amount on line 4 of that worksheet if the amount on line 4 were reduced by 80% of the refund you received in 2009.
taxmap/instr/i1040gi-010.htm#TXMP00d08cf5

Line 11(p24)


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taxmap/instr/i1040gi-010.htm#TXMP47bb0d59

Alimony Received(p24)


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Enter amounts received as alimony or separate maintenance. You must let the person who made the payments know your social security number. If you do not, you may have to pay a $50 penalty. For more details, see Pub. 504.
taxmap/instr/i1040gi-010.htm#w24811v06
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State and Local Income Tax Refund Worksheet—Line 10

  • Be sure you have read the Exception above to see if you can use this worksheet instead of Pub. 525 to figure if any of your refund is taxable.
1.   Enter the income tax refund from Form(s) 1099-G (or similar statement). But do not enter more than the amount of your state and local income taxes shown on your 2008 Schedule A, line 51.               
2.   Enter your total allowable itemized deductions from your 2008 Schedule A, line 29 2.                
   
  Note. If the filing status on your 2008 Form 1040 was married filing separately and your spouse itemized deductions in 2008, skip lines 3 through 9, enter the amount from line 2 on line 10, and go to line 11.  
3.   Enter the amount shown below for the filing status claimed on your
2008 Form 1040.
  
  
  • Single or married filing separately—$5,450
  • Married filing jointly or qualifying widow(er)—$10,900
  • Head of household—$8,000
Right brace   3.                
4.   Did you fill in line 39a on your 2008 Form 1040?  
  Box No. Enter -0-.  Right brace   4.                
  Box Yes. Multiply the number in the box on line 39a of your 2008 Form 1040 by $1,050 ($1,350 if your 2008 filing status was single or head of household).   
5.   Enter any state or local real estate taxes shown on your 2008 Schedule A, line 6. Do not include foreign real estate taxes 5.                   
6.   Enter $500 ($1,000 if married filing jointly) 6.                   
7.   Enter the smaller of line 5 or line 6 7.                   
8.   Enter any net disaster loss from your 2008 Form 4684, line 18a 8.                   
9.   Add lines 3, 4, 7, and 8 9.                
10.   Is the amount on line 9 less than the amount on line 2?  
  Box No. Stop reading here. This doen't apply to you None of your refund is taxable.     
  Box Yes. Subtract line 9 from line 2 10.               
11.    Taxable part of your refund. Enter the smaller of line 1 or line 10 here and on Form 1040, line 10 11.               
 
taxmap/instr/i1040gi-010.htm#TXMP0641ce2d

Line 12(p24)


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taxmap/instr/i1040gi-010.htm#TXMP126700b1

Business Income or (Loss)(p24)


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If you operated a business or practiced your profession as a sole proprietor, report your income and expenses on Schedule C or C-EZ.
taxmap/instr/i1040gi-010.htm#TXMP521719c1

Line 13(p24)


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taxmap/instr/i1040gi-010.htm#TXMP09414559

Capital Gain or (Loss)(p24)


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If you had a capital gain or loss, including any capital gain distributions or a capital loss carryover from 2008, you must complete and attach Schedule D.
taxmap/instr/i1040gi-010.htm#TXMP721a7277

Exception.(p24)

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You do not have to file Schedule D if both of the following apply.
If both of the above apply, enter your total capital gain distributions (from box 2a of Form(s) 1099-DIV) on line 13 and check the box on that line. If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on line 13 only the amount that belongs to you. Attach a statement showing the full amount you received and the amount you received as a nominee. See the Schedule B instructions for filing requirements for Forms 1099-DIV and 1096.
taxtip
If you do not have to file Schedule D, use the Qualified Dividends and Capital Gain Tax Worksheet on page 39 to figure your tax. Your tax is usually less if you use this worksheet.
taxmap/instr/i1040gi-010.htm#TXMP16a565dd

Line 14(p24)


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taxmap/instr/i1040gi-010.htm#TXMP60d3473e

Other Gains or (Losses)(p24)


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If you sold or exchanged assets used in a trade or business, see the Instructions for Form 4797.
taxmap/instr/i1040gi-010.htm#TXMP30cd57e5

Lines 15a and 15b(p24)


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taxmap/instr/i1040gi-010.htm#TXMP383ac40d

IRA Distributions(p24)


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Special rules may apply to your IRA distributions if your main home was in a Midwestern disaster area. For details, see Pub. 4492-B.
You should receive a Form 1099-R showing the amount of any distribution from your IRA. Unless otherwise noted in the line 15a and 15b instructions, an IRA includes a traditional IRA, Roth IRA, simplified employee pension (SEP) IRA, and a savings incentive match plan for employees (SIMPLE) IRA. Except as provided below, leave line 15a blank and enter the total distribution on line 15b.
taxmap/instr/i1040gi-010.htm#TXMP11e4e10a

Exception 1.(p24)

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Enter the total distribution on line 15a if you rolled over part or all of the distribution from one:
Also, enter Rollover next to line 15b. If the total distribution was rolled over in a qualified rollover, enter -0- on line 15b. If the total distribution was not rolled over in a qualified rollover, enter the part not rolled over on line 15b unless Exception 2 applies to the part not rolled over. Generally, a qualified rollover must be made within 60 days after the day you received the distribution. For more details on rollovers, see Pub. 590.
If you rolled over the distribution into a qualified plan other than an IRA or you made the rollover in 2010, attach a statement explaining what you did.
taxmap/instr/i1040gi-010.htm#TXMP25145b20

Exception 2.(p24)

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If any of the following apply, enter the total distribution on line 15a and see Form 8606 and its instructions to figure the amount to enter on line 15b.
  1. You received a distribution from an IRA (other than a Roth IRA) and you made nondeductible contributions to any of your traditional or SEP IRAs for 2009 or an earlier year. If you made nondeductible contributions to these IRAs for 2009, also see Pub. 590.
  2. You received a distribution from a Roth IRA. But if either (a) or (b) below applies, enter -0- on line 15b; you do not have to see Form 8606 or its instructions.
    1. Distribution code T is shown in box 7 of Form 1099-R and you made a contribution (including a conversion) to a Roth IRA for 2004 or an earlier year.
    2. Distribution code Q is shown in box 7 of Form 1099-R.
  3. You converted part or all of a traditional, SEP, or SIMPLE IRA to a Roth IRA in 2009.
  4. You had a 2008 or 2009 IRA contribution returned to you, with the related earnings or less any loss, by the due date (including extensions) of your tax return for that year.
  5. You made excess contributions to your IRA for an earlier year and had them returned to you in 2009.
  6. You recharacterized part or all of a contribution to a Roth IRA as a traditional IRA contribution, or vice versa.
taxmap/instr/i1040gi-010.htm#TXMP4f4421c7

Exception 3.(p24)

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If the distribution is a qualified charitable distribution (QCD), enter the total distribution on line 15a. If the total amount distributed is a QCD, enter -0- on line 15b. If only part of the distribution is a QCD, enter the part that is not a QCD on line 15b unless Exception 2 applies to that part. Enter QCD next to line 15b.
A QCD is a distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions (with certain exceptions). You must have been at least age 70 when the distribution was made. Your total QCDs for the year cannot be more than $100,000. (On a joint return, your spouse can also have a QCD of up to $100,000.) The amount of the QCD is limited to the amount that would otherwise be included in your income. If your IRA includes nondeductible contributions, the distribution is first considered to be paid out of otherwise taxable income. See Pub. 590 for details.
caution
You cannot claim a charitable contribution deduction for any QCD not included in your income.
taxmap/instr/i1040gi-010.htm#TXMP6338ae9a

Exception 4.(p25)

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If the distribution is a qualified health savings account (HSA) funding distribution (HFD), enter the total distribution on line 15a. If the total amount distributed is an HFD and you elect to exclude it from income, enter -0- on line 15b. If only part of the distribution is an HFD and you elect to exclude that part from income, enter the part that is not an HFD on line 15b unless Exception 2 applies to that part. Enter HFD next to line 15b.
An HFD is a distribution made directly by the trustee of your IRA (other than an ongoing SEP or SIMPLE IRA) to your HSA. If eligible, you generally can elect to exclude an HFD from your income once in your lifetime. You cannot exclude more than the limit on HSA contributions or more than the amount that would otherwise be included in your income. If your IRA includes nondeductible contributions, the HFD is first considered to be paid out of otherwise taxable income. See Pub. 969 for details.
caution
The amount of an HFD reduces the amount you can contribute to your HSA for the year. If you fail to maintain eligibility for an HSA for the 12 months following the month of the HFD, you may have to report the HFD as income and pay an additional tax. See Form 8889, Part III.
See Pub. 590 for details.
taxmap/instr/i1040gi-010.htm#TXMP10621d21

More than one exception applies.(p25)

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If more than one exception applies, attach a statement showing the amount of each exception, instead of making an entry next to line 15b. For example: Line 15b – $1,000 Rollover and $500 HFD.
taxmap/instr/i1040gi-010.htm#TXMP5cbea40e

More than one distribution.(p25)

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If you (or your spouse if filing jointly) received more than one distribution, figure the taxable amount of each distribution and enter the total of the taxable amounts on line 15b. Enter the total amount of those distributions on line 15a.
caution
You may have to pay an additional tax if you received an early distribution from your IRA and the total was not rolled over. See the instructions for line 58 on page 45 for details.
taxmap/instr/i1040gi-010.htm#TXMP369e4e44

Lines 16a and 16b(p25)


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taxmap/instr/i1040gi-010.htm#TXMP318b34fb

Pensions and Annuities(p25)


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Special rules may apply if you received a distribution from a profit-sharing or retirement plan and your main home was in a Midwestern disaster area. For details, see Pub. 4492-B.
You should receive a Form 1099-R showing the amount of your pension and annuity payments, including distributions from 401(k), 403(b), and governmental 457(b) plans. See page 27 for details on rollovers and lump-sum distributions. Do not include the following payments on lines 16a and 16b. Instead, report them on line 7.
taxtip
Attach Form(s) 1099-R to  
Form 1040 if any federal 
income tax was withheld.
taxmap/instr/i1040gi-010.htm#TXMP409958a4

Fully Taxable Pensions and Annuities(p25)


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If your pension or annuity is fully taxable, enter it on line 16b; do not make an entry on line 16a. Your payments are fully taxable if (a) you did not contribute to the cost (see page 27) of your pension or annuity, or (b) you got your entire cost back tax free before 2009. But see Insurance Premiums for Retired Public Safety Officers on this page.
taxmap/instr/i1040gi-010.htm#w24811v01
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Simplified Method Worksheet—Lines 16a and 16b

  • If you are the beneficiary of a deceased employee or former employee who died before August 21, 1996, include any death benefit exclusion that you are entitled to (up to $5,000) in the amount entered on line 2 below.
Note. If you had more than one partially taxable pension or annuity, figure the taxable part of each separately. Enter the total of the taxable parts on Form 1040, line 16b. Enter the total pension or annuity payments received in 2009 on Form 1040, line 16a.
1. Enter the total pension or annuity payments received in 2009. Also, enter this amount on Form 1040,
line 16a
1.               
2. Enter your cost in the plan at the annuity starting date2.                
  Note. If you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Otherwise, go to line 3.      
3. Enter the appropriate number from Table 1 below. But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below3.                
4. Divide line 2 by the number on line 34.                
5. Multiply line 4 by the number of months for which this year's payments were made. If your annuity starting date was before 1987, skip lines 6 and 7 and enter this amount on line 8. Otherwise, go to line 65.                
6. Enter the amount, if any, recovered tax free in years after 1986. If you completed this worksheet last year, enter the amount from line 10 of last year's worksheet6.                
7. Subtract line 6 from line 27.                
8. Enter the smaller of line 5 or line 78.               
9. Taxable amount. Subtract line 8 from line 1. Enter the result, but not less than zero. Also, enter this amount on Form 1040, line 16b. If your Form 1099-R shows a larger amount, use the amount on this line instead of the amount from Form 1099-R. If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers on page 25 before entering an amount on line 16b.9.               
10.Was your annuity starting date before 1987?    
  Box Yes. Stop sign Leave line 10 blank.    
  Stop sign No. Add lines 6 and 8. This is the amount you have recovered tax free through 2009. You will need this number when you fill out this worksheet next year10.               
  
Table 1 for Line 3 Above  
     AND your annuity starting date was—   
  IF the age at annuity starting date (see page 25) was . . .   before November 19, 1996,
enter on line 3 . . .
  after November 18, 1996, enter on line 3 . . .  
     55 or under 300 360  
     56–60 260 310  
     61–65 240 260  
     66–70 170 210  
     71 or older 120 160  
Table 2 for Line 3 Above
  IF the combined ages at annuity
starting date (see page 25) were . . .
  THEN enter on line 3 . . .   
     110 or under 410  
     111–120 360  
     121–130 310  
     131–140 260  
     141 or older 210  
Fully taxable pensions and annuities also include military retirement pay shown on Form 1099-R. For details on military disability pensions, see Pub. 525. If you received a Form RRB-1099-R, see  
Pub. 575 to find out how to report your benefits.
taxmap/instr/i1040gi-010.htm#TXMP17563d0d

Partially Taxable Pensions and Annuities(p25)


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Enter the total pension or annuity payments you received in 2009 on line 16a. If your Form 1099-R does not show the taxable amount, you must use the General Rule explained in Pub. 939 to figure the taxable part to enter on line 16b. But if your annuity starting date (defined on this page) was after July 1, 1986, see Simplified Method on this page to find out if you must use that method to figure the taxable part.
You can ask the IRS to figure the taxable part for you for a $500 fee. For details, see Pub. 939.
If your Form 1099-R shows a taxable amount, you can report that amount on  
line 16b. But you may be able to report a lower taxable amount by using the General Rule or the Simplified Method or if the exclusion for retired public safety officers, discussed next, applies.
taxmap/instr/i1040gi-010.htm#TXMP290b3c03

Insurance Premiums for Retired Public Safety Officers(p25)


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If you are an eligible retired public safety officer (law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew), you can elect to exclude from income distributions made from your eligible retirement plan that are used to pay the premiums for coverage by an accident or health plan or a long-term care insurance contract. You can do this only if you retired because of disability or because you reached normal retirement age. The premiums can be for coverage for you, your spouse, or dependents. The distribution must be from a plan maintained by the employer from which you retired as a public safety officer. Also, the distribution must be made directly from the plan to the provider of the accident or health plan or long-term care insurance contract. You can exclude from income the smaller of the amount of the premiums or $3,000. You can only make this election for amounts that would otherwise be included in your income.
An eligible retirement plan is a governmental plan that is:
If you make this election, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. The amount shown in box 2a of Form 1099-R does not reflect the exclusion. Report your total distributions on line 16a and the taxable amount on line 16b. Enter PSO next to line 16b.
If you are retired on disability and reporting your disability pension on line 7, include only the taxable amount on that line and enter PSO and the amount excluded on the dotted line next to line 7.
taxmap/instr/i1040gi-010.htm#TXMP74702a92

Annuity Starting Date(p25)


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Your annuity starting date is the later of the first day of the first period for which you received a payment or the date the plan's obligations became fixed.
taxmap/instr/i1040gi-010.htm#TXMP53d3e3f7

Simplified Method(p25)


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You must use the Simplified Method if either of the following applies.
  1. Your annuity starting date (defined above) was after July 1, 1986, and you used this method last year to figure the taxable part.
  2. Your annuity starting date was after November 18, 1996, and both of the following apply.
    1. The payments are from a qualified employee plan, a qualified employee annuity, or a tax-sheltered annuity.
    2. On your annuity starting date, either you were under age 75 or the number of years of guaranteed payments was fewer than 5. See Pub. 575 for the definition of guaranteed payments.
If you must use the Simplified Method, complete the worksheet below to figure the taxable part of your pension or annuity. For more details on the Simplified Method, see Pub. 575 or Pub. 721 for U.S. Civil Service retirement benefits.
caution
If you received U.S. Civil Service retirement benefits and you chose the alternative annuity option, see Pub. 721 to figure the taxable part of your annuity. Do not use the worksheet below.
taxmap/instr/i1040gi-010.htm#TXMP6694df59

Age (or Combined Ages) at Annuity Starting Date(p26)


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If you are the retiree, use your age on the annuity starting date. If you are the survivor of a retiree, use the retiree's age on his or her annuity starting date. But if your annu ity starting date was after 1997 and the payments are for your life and that of your beneficiary, use your combined ages on the annuity starting date.
If you are the beneficiary of an employee who died, see Pub. 575. If there is more than one beneficiary, see Pub. 575 or Pub. 721 to figure each beneficiary's taxable amount.
taxmap/instr/i1040gi-010.htm#TXMP1ea62b08

Cost(p27)


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Your cost is generally your net investment in the plan as of the annuity starting date. It does not include pre-tax contributions. Your net investment should be shown in box 9b of Form 1099-R for the first year you received payments from the plan.
taxmap/instr/i1040gi-010.htm#TXMP53b73f26

Rollovers(p27)


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Generally, a qualified rollover is a tax-free distribution of cash or other assets from one retirement plan that is contributed to another plan within 60 days of receiving the distribution. However, a qualified rollover to a Roth IRA is generally not a tax-free distribution. Use lines 16a and 16b to report a qualified rollover, including a direct rollover, from one qualified employer's plan to another or to an IRA or SEP.
For more details on rollovers, including distributions under qualified domestic relations orders, see Pub. 575.
taxmap/instr/i1040gi-010.htm#TXMP7438a76d

Rollover to a plan other than a Roth IRA or a designated Roth account.(p27)

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Enter on line 16a the total distribution before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R. From the total on line 16a, subtract any contributions (usually shown in box 5) that were taxable to you when made. From that result, subtract the amount of the qualified rollover. Enter the remaining amount, even if zero, on line 16b. Also, enter "Rollover" next to line 16b.
Special rules apply to partial rollovers of property. See Pub. 575.
taxmap/instr/i1040gi-010.htm#TXMP64f8c286

Rollover to a Roth IRA (other than from a designated Roth account).(p27)

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Enter on line 16a the total distribution before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R. From the total on line 16a, subtract any contributions (usually shown in box 5) that were taxable to you when made. Enter the remaining amount, even if zero, on line 16b.
taxmap/instr/i1040gi-010.htm#TXMP6c81990a

Rollover to a Roth IRA or a designated Roth account from a designated Roth account.(p27)

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Enter on line 16a the total distribution before income tax or other deductions were withheld. This amount should be shown in box 1 of Form 1099-R. From the total on line 16a, subtract the amount of the qualified rollover. Enter the remaining amount, even if zero, on line 16b. Also, enter Rollover next to line 16b.
taxmap/instr/i1040gi-010.htm#TXMP3e3f437d

Lump-Sum Distributions(p27)


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If you received a lump-sum distribution from a profit-sharing or retirement plan, your Form 1099-R should have the "Total distribution" box in box 2b checked. You may owe an additional tax if you received an early distribution from a qualified retirement plan and the total amount was not rolled over in a qualified rollover. For details, see the instructions for line 58 on page 45.
Enter the total distribution on line 16a and the taxable part on line 16b. For details, see Pub. 575.
taxtip
You may be able to pay less tax on the distribution if you were born before January 2, 1936, or you are the beneficiary of a deceased employee who was born before January 2, 1936. For details, see Form 4972.
taxmap/instr/i1040gi-010.htm#TXMP69a88b5f

Line 19(p27)


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taxmap/instr/i1040gi-010.htm#TXMP22c89207

Unemployment Compensation(p27)


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You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you in 2009. Report on line 19 the part, if any, you received that is more than $2,400. If married filing jointly, also report on line 19 any unemployment compensation received by your spouse that is more than $2,400. If you made contributions to a governmental unemployment compensation program and you are not itemizing deductions, reduce the amount you report on line 19 by those contributions.
If you received an overpayment of unemployment compensation in 2009 and you repaid any of it in 2009, reduce the amount you would otherwise be required to report on line 19 by the amount you repaid. Enter the result on line 19. However, if the result is zero or less, enter -0- on line 19. Also, enter Repaid and the amount you repaid on the dotted line next to line 19. If, in 2009, you repaid unemployment compensation that you included in gross income in an earlier year, you can deduct the amount repaid on Schedule A, line 23. But if you repaid more than $3,000, see Repayments in Pub. 525 for details on how to report the repayment.
taxmap/instr/i1040gi-010.htm#TXMP2cb21dbd

Lines 20a and 20b(p27)


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taxmap/instr/i1040gi-010.htm#TXMP5ff79aa0

Social Security Benefits(p27)


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You should receive a Form SSA-1099 showing in box 3 the total social security benefits paid to you. Box 4 will show the amount of any benefits you repaid in 2009. If you received railroad retirement benefits treated as social security, you should receive a Form RRB-1099.
Use the worksheet on page 28 to see if any of your benefits are taxable.
taxmap/instr/i1040gi-010.htm#TXMP5087cefb

Exception.(p27)

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Do not use the worksheet on page 28 if any of the following applies.
taxmap/instr/i1040gi-010.htm#w24811v03
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Social Security Benefits Worksheet—Lines 20a and 20b

  • Complete Form 1040, lines 21 and 23 through 32, if they apply to you.
  • Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36 on page 35).
  • If you are married filing separately and you lived apart from your spouse for all of 2009, enter "D" to the right of the word "benefits" on line 20a. If you do not, you may get a math error notice from the IRS.
  • Be sure you have read the Exception on page 27 to see if you can use this worksheet instead of a publication to find out if any of your benefits are taxable.
  
1.  Enter the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099. Also, enter this amount on Form 1040, line 20a1.                 
2.  Enter one-half of line 12.                
3.  Enter the total of the amounts from Form 1040, lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 213.                
4.  Enter the amount, if any, from Form 1040, line 8b4.                
5.  Add lines 2, 3, and 45.                
6.  Enter the total of the amounts from Form 1040, lines 23 through 32, plus any write-in adjustments you entered on the dotted line next to line 366.                
7.  Is the amount on line 6 less than the amount on line 5?  
   Stop sign No. Stop reading here. This doen't apply to you None of your social security benefits are taxable. Enter -0- on Form 1040, line  20b.    
   Stop reading here. This doen't apply to you Yes. Subtract line 6 from line 57.                
8.  If you are:
  • Married filing jointly, enter $32,000
  • Single, head of household, qualifying widow(er), or married filing
      separately and you lived apart from your spouse for all of 2009,
      enter $25,000
Right brace 8.                
  
  • Married filing separately and you lived with your spouse at any time
      in 2009, skip lines 8 through 15; multiply line 7 by 85% (.85) and
      enter the result on line 16. Then go to line 17
  
9.  Is the amount on line 8 less than the amount on line 7?  
   Stop reading here. This doen't apply to you No. Stop reading here. This doen't apply to you None of your social security benefits are taxable. Enter -0- on Form 1040, line 20b. If you are married filing separately and you lived apart from your spouse for all of 2009, be sure you entered "D" to the right of the word "benefits" on line 20a.  
   Stop reading here. This doen't apply to you Yes. Subtract line 8 from line 79.                
10.  Enter: $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 200910.                
11.  Subtract line 10 from line 9. If zero or less, enter -0-11.                
12.  Enter the smaller of line 9 or line 1012.                
13.  Enter one-half of line 1213.                
14.  Enter the smaller of line 2 or line 1314.                
15.  Multiply line 11 by 85% (.85). If line 11 is zero, enter -0-15.                
16.  Add lines 14 and 1516.                
17.  Multiply line 1 by 85% (.85)17.                
18.   Taxable social security benefits. Enter the smaller of line 16 or line 17. Also enter this amount on Form 1040, line 20b18.                
Tip If any of your benefits are taxable for 2009 and they include a lump-sum benefit payment that was for an earlier year, you may be able to reduce the taxable amount. See Pub. 915 for details.  
taxmap/instr/i1040gi-010.htm#TXMP7c494a23

Line 21(p29)


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taxmap/instr/i1040gi-010.htm#TXMP074dc5c3

Other Income(p29)


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caution
Do not report on this line any income from self-employment or fees received as a notary public. Instead, you must use Schedule C, C-EZ, or F, even if you do not have any business expenses. Also, do not report on line 21 any nonemployee compensation shown on Form 1099-MISC. Instead, see the chart on page 11 to find out where to report that income.
taxmap/instr/i1040gi-010.htm#TXMP222f9b88

Taxable income.(p29)

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Use line 21 to report any taxable income not reported elsewhere on your return or other schedules. See the examples below. List the type and amount of income. If necessary, show the required information on an attached statement. For more details, see Miscellaneous Income in Pub. 525.
Examples of income to report on line 21 include the following.
caution
You may have to pay an additional tax if you received a taxable distribution from a Coverdell ESA or a QTP. See the Instructions for Form 5329.
taxmap/instr/i1040gi-010.htm#TXMP1c0abbf1

Nontaxable income.(p29)

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Do not report any nontaxable income on line 21. Examples of nontaxable income include the following.