skip navigation

Search Help
Navigation Help

Topic Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#

FAQs
Forms
Publications
Tax Topics

Comments
About Tax Map

IRS.gov Website
Instructions for Schedule J (Form 1040)
taxmap/instr/i1040sj-007.htm#TXMP1faa2130

Line 9(p7)

rule
If you used Schedule J to figure your tax for:
If you figured your tax for both 2009 and 2010 without using Schedule J, enter on line 9 the taxable income from your 2009 tax return (or as previously adjusted by the IRS or corrected on an amended return). But if that amount is zero or less, complete the worksheet below to figure the amount to enter on line 9.
If you did not file a tax return for 2009, use the amount you would have reported as your taxable income had you been required to file a tax return. Be sure to keep all your records for 2009 until at least 3 years after April 17, 2012 (or the date you file your 2011 tax return, if later).
taxmap/instr/i1040sj-007.htm#TXMP0b804695

Instructions for 2009 Taxable Income Worksheet(p7)

rule
taxmap/instr/i1040sj-007.htm#TXMP29e8454b
Line 2.(p7)
rule
Any net capital loss deduction on your 2009 Schedule D, line 21, is not allowed for income averaging purposes to the extent it did not reduce your capital loss carryover to 2010. This could happen if the taxable income before subtracting exemptions—shown on your 2009 Form 1040, line 41, or your 2009 Form 1040NR, line 38 (or as previously adjusted)—was less than zero. Enter on line 2 the amount by which your 2009 capital loss carryover to 2010 (the sum of your short- and long-term capital loss carryovers) exceeds the excess of the loss on your 2009 Schedule D, line 16, over the loss on your 2009 Schedule D, line 21. If you had any NOL carrybacks to 2009, be sure you refigured your 2009 capital loss carryover to 2010.
taxmap/instr/i1040sj-007.htm#TXMP44e0d0ab
Line 3.(p7)
rule
If you had an NOL for 2009, enter the amount of that NOL from line 25 of the 2009 Form 1045, Schedule A, you filed with Form 1045 or Form 1040X. If you did not have an NOL for 2009, enter the portion, if any, of the NOL carryovers and carrybacks to 2009 that were not used in 2009 and were carried to years after 2009.
taxmap/instr/i1040sj-007.htm#TXMP1b01768b
Example.(p7)
rule
John Farmington did not use income averaging for 2008, 2009, or 2010. The taxable income before subtracting exemptions on his 2009 Form 1040, line 41, is a negative $29,900. A deduction for exemptions of $3,650 is shown on line 42, and line 43, taxable income, is limited to zero. John subtracts from the $29,900 loss the $3,650 deduction for exemptions. The result is a negative $33,550, John's 2009 taxable income, which he enters as a positive amount on line 1 of the 2009 Taxable Income Worksheet.
When John filed his 2009 tax return, he had a $3,000 net capital loss deduction on Schedule D, line 21 (which was also entered on Form 1040, line 13), and a $7,000 loss on Schedule D, line 16 (as adjusted). He also had a $7,000 capital loss carryover to 2010. John adds the $3,000 from Schedule D, line 21, and the $7,000 carryover. He subtracts from the $10,000 result the $7,000 loss on his Schedule D, line 16, and enters $3,000 on line 2 of the worksheet.
John enters $21,200 on line 3 of the worksheet, the 2009 NOL from his 2009 Form 1045, Schedule A, line 25. Of the $33,550 negative taxable income, the $3,650 deduction for exemptions, the $3,000 capital loss deduction, and his $5,700 standard deduction were not allowed in figuring the NOL. John had a $21,200 loss on his 2009 Schedule F, the only other item on his 2009 tax return.
John enters $24,200 (the $3,000 line 2 amount plus the $21,200 line 3 amount) on line 4 and $9,350 (the $33,550 line 1 amount minus the $24,200 line 4 amount) on line 5. He enters $9,350 as a negative amount on Schedule J, line 9. He enters $6,000 on Schedule J, line 10, and a negative $3,350 on Schedule J, line 11. If he uses Schedule J to figure his tax for 2012, he will enter the negative $3,350 amount on his 2012 Schedule J as his 2009 taxable income for income averaging purposes.
taxmap/instr/i1040sj-007.htm#w25514j04
pencil

2009 Taxable Income Worksheet—Line 9

Complete this worksheet if you did not use Schedule J to figure your tax for 2010 and your 2009 taxable income was zero or less. See the instructions above before completing this worksheet.
1.Figure the taxable income from your 2009 tax return (or as previously adjusted) without limiting it to zero. If you had an NOL for 2009, do not include any NOL carryovers or carrybacks to 2009. Enter the result as a positive amount 1. 
2.If there is a loss on your 2009 Schedule D, line 21, add that loss (as a positive amount) and your 2009 capital loss carryover to 2010. Subtract from that sum the amount of the loss on your 2009 Schedule D, line 16, and enter the result 2.   
3.If you had an NOL for 2009, enter it as a positive amount. Otherwise, enter as a positive amount the portion, if any, of the NOL carryovers and carrybacks to 2009 that were not used in 2009 and were carried to years after 2009 3.   
4.Add lines 2 and 34. 
5.Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 9 5.